IRRRL Program FAQs

Generally, the borrowers on the original VA loan need to be on the new IRRRL unless the death or divorce of an applicant occurs. Lenders usually can't remove a currently married or separated spouse from the new loan if they're obligated on the old one.

VA IRRRLs are unique in terms of VA loan entitlement. Getting an IRRRL does not require the use of a new or additional entitlement. Whatever amount of VA loan entitlement was used to secure the original purchase loan remains the same for the new loan, regardless of the loan amount.

Having a higher or lower loan amount on the IRRRL can affect the guaranty amount, which reflects how much lenders would recoup in the event of default. But it cannot affect the amount of a Veteran’s previously used entitlement.

An IRRRL is generally a form of refinancing where no cash-out is allowed. However, as much as $6,000 in additional money may be borrowed to cover the cost of qualified energy efficiency improvements completed within 90 days before closing. Ask your lender for details.

Closing costs and fees for a VA IRRRL can vary by lender, but typically range from 3% to 5% of the loan amount. Borrowers can typically roll these into the final loan amount instead of paying the costs upfront. Ask your lender for details or talk with a Peoples Bank & Trust loan specialist at 1-800-697-4371.

Refinancing to a 15-year mortgage is entirely possible and very common. The lifetime interest cost of a shorter loan will be less than a 30-year mortgage. However, the monthly payments on a 15-year mortgage can be significantly higher.

Look at both the monthly payments and lifetime interest costs to see if a mortgage with a shorter term makes sense.

Refinancing may result in higher finance charges over the life of the loan.