Just found out about IRRRL and got an offer, any advise welcome.

Background, my home cost about 225K, and I got a 30 year loan at 6.25. I pay about a little over 19k a month and I have had it over a year. The home is estimated to be at least in the 250s if not more but the owner was eager to move it.

I got a phone call at work from my Mortgage owners (Pennymac) and they told me that they are doing a yearly follow up and that I am eligible for the IRRRL. I didn’t know what that was, she gave me the cliff notes and from what I understand.

Its a free/cheap way to refinance as a veteran. Because of my 10% disability, I dont have to pay the .5% fee.

I told her to call me back monday as I work all weekend but I did some research into refinancing online and got a call from Rocket Mortgage early this morning. They did some quick numbers and told me they could drop me from 6.25 to 5.25, saving me 200 a month.

I told him I will get in touch if my mortgage lenders could do as good and he said the usual FOMO of it could change daily and its unlikely anyone can match as Rocket has some of the best IRRRL’s.

I am slowly figuring out about closing costs and points and things but all of it is still going over my head. Can someone suggest what they would do? Ive heard dont unless its over a full point, something about closing costs being too much or recouping…I am very financially illiterate. It sounds great but I know there is a catch somewhere.

Also I don’t understand escrow much.