Thinking about refinancing your house with the VA IRRRL refinance program? You are not alone. Many Veterans who have a VA loan are looking at the VA IRRRL streamline refinance as a way to lower their monthly mortgage payment and save money in overall interest by lowering their interest rate.
But something that you may not know – many Veterans are also looking into refinancing into a VA 15 year fixed rate loan and shortening their overall loan term – saving them tens of thousands (or more!) in interest over the life of their loan.
VA IRRRL 15 Year Fixed Rates: What You Can Expect
When comparing a VA 15 year fixed rate vs. a VA 30 year fixed rate, you can expect the 15 year fixed rate to be about .5% lower than the 30 year fixed rate (or sometimes up to 1% depending on the lender) and over the life of the loan, this can add up to quite a bit of savings. But even though the interest rate will be lower, if you select a 15 year fixed rate VA loan, you can expect to see your monthly mortgage payment INCREASE by shortening your loan from a 30 year term to a 15 year term.
If you are interested in possibly getting a 15 year fixed rate VA IRRRL loan, you will want to ask your loan officer to compare the 15 year fixed rate and term with the 30 year rate and term and put them side by side so you can see which one will work for your budget and overall financial goals.
Both the 15 and the 30 year VA loan will have a fixed rate (and if you act while rates are low, you can keep that same low rate over the life of the loan by getting a fixed rate) and you just need to decide which one is right for your situation.
Act now while rates are low – many Veterans are amazed at how much they can save when they participate in the VA IRRRL streamline program. The best possible thing you can do to get the best rate is to shop around – start by shopping right here! We have VA approved lenders waiting to speak with you about your situation.