The fee's on an IRRRL can be rolled in along with the VA Funding Fee. On a purchase, fees can't be rolled into the loan-the only fee that can is the funding fee. I hope that clarifies things. Right now, IRRRLs often don't make sense due to the amount of fees lenders are charging.
@@vahousingeducationwhat would you recommend if I’m NOT trying to increase my loan with the closing costs using IRRRL and avoid restarting my loan date? Rates are slowly dropping
@@27Rican it depends how much closing costs are going to be, it depends on the overall fee's AND you can do a odd term - meaning you can do a 27 year mortgage if you wanted to so you're not "resetting" how long you have to pay but in turn that does affect your payment making it higher. Happy to go over your specific situation and give you an option. calendly.com/vahousingeducation/30min
Could I refi and keep my current loan age. So for example; if i purchased the property in 2020 and refied to get a lower rate, my mortgage is now in its 26th year. Could I refi without resetting the clock to 30 years?
Great questions! Yes you can - typically you can do a IRRRL between a 20 - 30 year term. This includes odd terms like a 21, 22, 23, 24, 26, 27, 27, 28, 29 year mortgage. The catch, you still need to meet the recoupment period of 36 months. The shorter the term, the lower the monthly savings which equals a lower threshold for closing costs. On the other hand, you can get a 30 year mortgage and make payments as of it was a 26 year mortgage and it would net the exact same amount of interest. Does that help?
@@vahousingeducation It does. I ran some calculations and at 6.625% on a 30 year fixed, if I double my monthly payment for ONLY the first year, it will fast forward my 50% interest to 50% principal to the second year and save me 65% of the interest over the life of the mortgage. I just closed on a house and my first payment will be due in August. My plan is to double my mortgage payment for the first year and if the FED drops rates refi with an IRRRL wile keeping the clock set to 29 years. Just wanted to know if that was possible. I guess the core of my question really is, "Will the IRRRL refi also reset the amortization schedule." Might a better way of asking that question. Thanks.
If I use the same lender for IRRRL do I have to pay again? Application and processing fees Document preparation fees Loan closing or settlement fees Notary fees Interest rate lock-in fees Tax service fees Reconveyance fees Commitment or marketing fees Trustee's fees or charges
Great question. It depends on how they structure it. Most of the time, they say "FREE," but they say that because you don't have an out-of-pocket cost, and they roll the closing costs in. But yes, you'll still have to pay fees. You usually don't pay an Interest Rate Lock-in Fee, but the other fees sound about right. NOTE: make sure you're not getting charged origination fees and discount points, as that negates doing the IRRRL. Happy to jump on a call: calendly.com/vahousingeducation/30min
Great video! Explained everything very well about IRRRL, answered all the questions I had. Thanks!
Thank you for watching and the support. Let me know if you have any other video ideas :).
thank you
Thank you for watching and commenting!
The fees cannot be rolled into the mortgage unless it's the va funding fee.
The fee's on an IRRRL can be rolled in along with the VA Funding Fee. On a purchase, fees can't be rolled into the loan-the only fee that can is the funding fee. I hope that clarifies things. Right now, IRRRLs often don't make sense due to the amount of fees lenders are charging.
@@vahousingeducationwhat would you recommend if I’m NOT trying to increase my loan with the closing costs using IRRRL and avoid restarting my loan date? Rates are slowly dropping
@@27Rican it depends how much closing costs are going to be, it depends on the overall fee's AND you can do a odd term - meaning you can do a 27 year mortgage if you wanted to so you're not "resetting" how long you have to pay but in turn that does affect your payment making it higher. Happy to go over your specific situation and give you an option. calendly.com/vahousingeducation/30min
Could I refi and keep my current loan age. So for example; if i purchased the property in 2020 and refied to get a lower rate, my mortgage is now in its 26th year. Could I refi without resetting the clock to 30 years?
Great questions! Yes you can - typically you can do a IRRRL between a 20 - 30 year term. This includes odd terms like a 21, 22, 23, 24, 26, 27, 27, 28, 29 year mortgage. The catch, you still need to meet the recoupment period of 36 months. The shorter the term, the lower the monthly savings which equals a lower threshold for closing costs. On the other hand, you can get a 30 year mortgage and make payments as of it was a 26 year mortgage and it would net the exact same amount of interest. Does that help?
@@vahousingeducation It does. I ran some calculations and at 6.625% on a 30 year fixed, if I double my monthly payment for ONLY the first year, it will fast forward my 50% interest to 50% principal to the second year and save me 65% of the interest over the life of the mortgage. I just closed on a house and my first payment will be due in August. My plan is to double my mortgage payment for the first year and if the FED drops rates refi with an IRRRL wile keeping the clock set to 29 years. Just wanted to know if that was possible. I guess the core of my question really is, "Will the IRRRL refi also reset the amortization schedule." Might a better way of asking that question. Thanks.
That makes sense. You can definitely do 29 year mortgage on the IRRRL.
If I use the same lender for IRRRL do I have to pay again?
Application and processing fees
Document preparation fees
Loan closing or settlement fees
Notary fees
Interest rate lock-in fees
Tax service fees
Reconveyance fees
Commitment or marketing fees
Trustee's fees or charges
Great question. It depends on how they structure it. Most of the time, they say "FREE," but they say that because you don't have an out-of-pocket cost, and they roll the closing costs in. But yes, you'll still have to pay fees. You usually don't pay an Interest Rate Lock-in Fee, but the other fees sound about right. NOTE: make sure you're not getting charged origination fees and discount points, as that negates doing the IRRRL. Happy to jump on a call: calendly.com/vahousingeducation/30min
Great Info!
Thank you!