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Question on VA IRRRL in FL

I've been offered a VA IRRRL at 3.375% with closing costs covered by lender (not my current lender) .  So supposedly no money out of my pocket and no addition to my principal.  I'm currently at 3.875% on a 30 year fixed.  The refinance would save me about $110/month.  House is underwater--owe $300,000, market price is probably around $225,000.  Is this too good to be true?  Does the VA funding fee always have to be added to the principal on a refinance?  Let me know if more info is needed.
  • November 26 2012 - US
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Answers (3)

This looks like a good option for you.  [spam deleted by Zillow moderator]
  • October 27 2013
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It's not too good to be true. Even though the fees are high in FL the Lender Credit on a rate of 3.375% / $300K loan should pay all closing costs including the Funding Fee, unless your credit score is low. Adding to Wayne's appraisal comments, even if they tell you no appraisal confirm there is no AVM either.
  • November 26 2012
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Not all lenders do the IRRREL without an appraisal so be sure there is no question  that the lender can/will.  The funding fee of .50% can be paid or rolled into new loan.
Saving $110 net monthly with no closing cost or amount added to principal is a no brainer.
  • November 26 2012
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