IRRRL - Interest Rate Reduction Refinance Loan
The definition of mortgage term: Interest Rate Reduction Refinance Loan
An Interest Rate Reduction Refinance Loan is one of two options when refinancing a VA loan. An IRRRL is only available on a property in which there is already a VA loan. This involves refinancing the loan in order to get a lower interest rate and lower monthly payments. As with the Traditional VA loan there is a funding fee. The funding fee on IRRRLs is .5% unless the veteran collects disability from the VA, then this fee is waived. This may also be called a Streamline Refinance.
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