The official name for a VA streamline loan is the "interest rate reduction refinance loan." Or just "IRRRL" for short. Together, both names paint a pretty good picture of what this loan is. Basically, it's a fast and easy loan that's meant to lower the interest rate on your current VA mortgage.
VA streamline loans are a great option if:
Before deciding to refinance with an IRRRL, you should understand all the benefits and potential negatives. Luckily, the good news that an IRRRL has tons of pros and very few cons, so it's almost always a great choice.
To get an IRRRL, you must already have a VA loan. In addition, you must have previously occupied the home (though it doesn't currently need to be your primary residence).
In addition to these basic requirements, you can only get an IRRRL if it meets the following three requirements:
*The only exception to the NTB test is if you are moving from an ARM into a fixed rate loan. In this situation, your interest rate is allowed to increase because the benefit is that you will be in a more stable loan.