IRRRL Refinance now - still able to refinance VA to conv. later?

5 Replies

Used VA loan to buy a place in April of this year, heard about using the IRRRL to reduce mortgage payments after owning the place for 6 months. Seems like a no-brainer, if the numbers work out. My question is if I do this can I still refinance my VA to a conventional loan later on in life to restore my VA entitlement once I build up more equity?

Originally posted by @Anthony Alexander :

Used VA loan to buy a place in April of this year, heard about using the IRRRL to reduce mortgage payments after owning the place for 6 months. Seems like a no-brainer, if the numbers work out. My question is if I do this can I still refinance my VA to a conventional loan later on in life to restore my VA entitlement once I build up more equity?

Yup. I probably wouldn't do the IRRRL unless you're at least a year or so out from doing the conventional refinance -- all mortgages, including IRRRLs, have closing costs.

Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

@Anthony Alexander Sounds like you will be losing equity with 2 refinance transactions in a short period of time.  I would compare the total closing costs versus the payment savings before moving forward.

813-629-5478

Thank you for the replies, I will hold off on the IRRRL for now.

I did the IRRRL a year or so ago. The numbers made sense for me, and made a property profitable that was just breaking even for about 4 years. The cool part was they let me do the VA-to-VA refi with renters in the property. Sure, I didn't restore my VA entitlement, but that wasn't important at the time, and I'm not sure it is now, either, to me.
Do the math, figure out if it will help you reach your goals.

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