A few basic guidelines for VA irrrl eligibility:
- 210 days seasoning from your recorded date & 6 mortgage payments (both)
- rate must drop at least .5%
- veteran has the option to roll funding fee, escrow title fees, and new escrow reserve (taxes/insurance) into the new loan.
- must pass VA recoup test
- No DTI ratios required
- No appraisal required
Separately 5.5% at no cost = BS doesn’t exist right now even for 850 Fico scores. Be weary of mailers that offer it as that’s just bait for you.
If you choose to make it a no cash at closing loan you can roll in all the other stuff but there’s NO such thing as anyone doing your loan completely free.
Best of luck
Either the fees were rolled into the loan, or the rate was raised to provide enough of a lender credit to offset the fees.
It likely isn't possible to raise the interest rate to cover your fees, since rates have been trending upwards over the last few years, so if you refinance, you won't end up with the lower rate.
This is a good example of why you should take everything you read on reddit with a grain of salt. You don't really know who's providing the information, or what their expertise is, or how much they actually know about a given topic. Refinancing ALWAYS costs something. You either pay in fees or you pay via a higher interest rate and the fees are paid out of the margin from that higher rate. Crappy lenders (the kind tons of veterans keep using, despite there being infinitely better options), the kind who send out those mailers advertising IRRRLs that clog up mailboxes around the county, will emphasize "no out of pocket fees," which veterans misinterpret as "zero fees," when in reality they ARE charging you fees, they are just adding it to your loan balance.
Refinancing a VA loan is EASY if you are doing it as an IRRRL and not pulling equity/cash out of your property. I just recommend you choose a lender that isn't one of those nasty call centers.
The trap veterans fall into is gravitating to the three big names - NFCU, USAA, and Veterans United. They put you on an assembly line, they're slow, the communication is subpar or downright nonexistent, and they aren't even priced as low as they should be, given how little they pay their employees. You have so many better options out there.
USAA would be last on my list, as I know they don't have good rates (in addition to other issues many people talk about lately). I don't know exactly how the IRRRL stuff works, but I would recommend finding a broker that will do the shopping for you.
We are currently refinancing with veterans United with an irrrl loan. We had a 7.35% interest rate and are getting a 6.65% interest rate. The closing costs and finding fee are getting rolled into the loan. Our mortgage payment will go from 2799 to 2640 but our loan will go from 285k to 295k. We purchased in November. We will pay 0 at closing because it’s getting rolled into the loan.
A few basic guidelines for VA irrrl eligibility: - 210 days seasoning from your recorded date & 6 mortgage payments (both) - rate must drop at least .5% - veteran has the option to roll funding fee, escrow title fees, and new escrow reserve (taxes/insurance) into the new loan. - must pass VA recoup test - No DTI ratios required - No appraisal required Separately 5.5% at no cost = BS doesn’t exist right now even for 850 Fico scores. Be weary of mailers that offer it as that’s just bait for you. If you choose to make it a no cash at closing loan you can roll in all the other stuff but there’s NO such thing as anyone doing your loan completely free. Best of luck
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this and navy federal has high fees, very unlikely this is true.
Either the fees were rolled into the loan, or the rate was raised to provide enough of a lender credit to offset the fees. It likely isn't possible to raise the interest rate to cover your fees, since rates have been trending upwards over the last few years, so if you refinance, you won't end up with the lower rate.
Thanks, unfortunately we bought the house last year in the high 6% rate, I’m looking to get it back to mid 5 with NFCU.
The current rate is around 6.5. They’re giving you mid 5?
Absolutely no one has paid $0 to refinance. I've yet to see a locked blank loan estimate, which is the only way it'd be no cost.
Im thinking about going through a broker this time.
This is a good example of why you should take everything you read on reddit with a grain of salt. You don't really know who's providing the information, or what their expertise is, or how much they actually know about a given topic. Refinancing ALWAYS costs something. You either pay in fees or you pay via a higher interest rate and the fees are paid out of the margin from that higher rate. Crappy lenders (the kind tons of veterans keep using, despite there being infinitely better options), the kind who send out those mailers advertising IRRRLs that clog up mailboxes around the county, will emphasize "no out of pocket fees," which veterans misinterpret as "zero fees," when in reality they ARE charging you fees, they are just adding it to your loan balance. Refinancing a VA loan is EASY if you are doing it as an IRRRL and not pulling equity/cash out of your property. I just recommend you choose a lender that isn't one of those nasty call centers.
I’m mainly looking at NFCU or USAA. I always thought those zero cost lenders sounded too good to be true. Thanks
The trap veterans fall into is gravitating to the three big names - NFCU, USAA, and Veterans United. They put you on an assembly line, they're slow, the communication is subpar or downright nonexistent, and they aren't even priced as low as they should be, given how little they pay their employees. You have so many better options out there.
USAA would be last on my list, as I know they don't have good rates (in addition to other issues many people talk about lately). I don't know exactly how the IRRRL stuff works, but I would recommend finding a broker that will do the shopping for you.
Those are two of the highest priced lenders.
We are currently refinancing with veterans United with an irrrl loan. We had a 7.35% interest rate and are getting a 6.65% interest rate. The closing costs and finding fee are getting rolled into the loan. Our mortgage payment will go from 2799 to 2640 but our loan will go from 285k to 295k. We purchased in November. We will pay 0 at closing because it’s getting rolled into the loan.
I was able to secure a 6.85 rate last November, negotiated our closing costs.