Why No-Cost VA Loans Are Costing You Thousands

A VA Interest Rate Reduction Refinance Loan (IRRRL), also known as a VA Streamline, provides a simplified path for veterans who already have a VA loan to lower their interest rate and monthly payment.

• Offers advertised as no-cost are misleading; the closing costs are typically paid by either accepting a higher interest rate or by financing them, which increases the total loan balance.
• Calculating the break-even point is essential. This determines how long it will take for the monthly savings to cover the refinance costs, a period the VA requires to be 36 months or less.
• The program is designed for rate-and-term reduction only and does not allow for cash-out. Every IRRRL must pass a net tangible benefit test to ensure it genuinely improves the veteran's financial situation.

Read the full blog article here: https://www.iqratemortgages.com/blog/the-true-costs-of-a-va-irrrl-in-florida