Veteran Administration (VA) mortgage interest rates are the lowest in history, as veterans already know. They know this because they are being bombarded about refinancing with online ads, direct mail, and calls from their own mortgage company.

Here are some easy guidelines about the “streamline” interest rate reduction refinance loan (IRRRL). A veteran is eligible for a IRRRL if their current loan is already a VA loan and if there have been 210 days since their first payment on the current loan.

To use the IRRRL program, the veteran also must be able to make up all closing costs within 36 months. The calculation for recouping closing costs is made by taking the cost of the loan then dividing it by the amount of money saved per month. If the time to recoup closing costs is 36 months or less, the veteran is eligible. Lenders cannot fudge this number.

Another benefit is that a VA IRRRL never requires an appraisal on the property. Borrowers also do not have to income qualify for the loan, so no paystubs or tax returns are needed. Although VA streamlines could be used to shorten the term from a 30 to a 15 year mortgage, veterans must still recoup their closing costs within 36 months or they cannot do the IRRL program. Shortening the term is every difficult to do as the 36 month recoup formula still applies, but non-VA refi’s could also be considered.

And, very importantly, veterans should shop their IRRRL around and never assume their current lender, internet lender, or big bank is offering them the best deal. Many large lenders charge exorbitant fees to “buy down” the note to a lower rate or offer a higher interest rate than the veteran could get with a different lender.

Always shop your mortgage loan when you’re ready to refinance and compare the fees. Shop your mortgage locally too by including a local mortgage company. Indigo Mortgage Colorado has decades of experience in VA loans, and we work to make the process smooth and easy for Colorado’s veterans.