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VA IRRRL Calculator

The VA's Interest Rate Reduction Refinance Loan (IRRRL) offers an opportunity to lower your current VA mortgage payment by streamlining the refinance process.

Enter your existing VA loan balance or payoff amount.
%

VA Funding Fee0.50%

Receive VA Disability

Tax & Insurance

VA Payment $3,262

Principal & Interest$2,220
Property Tax$833
Home Insurance$208
An IRRRL requires a net tangible benefit to the homeowner, and the loan being refinanced must be a VA loan.

VA Loan $402,000

Current VA Loan Balance$400,000
VA Funding Fee • 0.5%$2,000
New Loan Amount$402,000
Total Payments$799,150
Start your IRRRL

VA IRRRL Payment Calculator

If your current mortgage is a VA loan, you may be eligible to lower your rate, lower your payment, or shorten your loan term with a streamlined VA loan refinance. AKA: VA IRRRL

In many cases lenders will not require an appraisal or income verification. This makes refinancing possible even if you owe more than your home is worth.

VA IRRRL Process

Each VA lender is different, but most will ask you to provide copies of the following:

  • Current Mortgage Statement
  • Homeowner's Insurance Declarations Page
  • Mortgage Note from Current VA Loan (found in the papers you received at closing)
  • HUD/Settlement Statement from Current VA Loan (found in the papers you received at closing)

The process is generally much easier than traditional refinances.

Request a VA IRRRL quote to see how much you can save.

What is a VA IRRRL?

VA IRRRL (Interest Rate Reduction Refinance Loan) is a streamlined VA refinance allowing those with VA loans to refinance to a new VA loan with better terms. In many cases no income verification and no appraisal are necessary.

NO CASH OUT!

VA IRRRL loans are available only to change the rate and/or term of your current VA loan. If you are looking to get cash back or if your current loan is something other than VA (FHA, USDA, conventional), then your new VA loan will be considered a cashout refinance.

VA IRRRL Definitions

Principal

The portion of your monthly payment that applies to and reduces your loan balance is called principal.

Interest

Interest accrues on your loan every day. When you make a payment, the interest that has accumulated since your last payment is paid first, bringing your accrued interest balance to zero.

VA Funding Fee

While VA loans do not impose monthly or annual mortgage insurance, there is typically a funding fee that is added to the base VA loan amount at inception. The funding fee is determined by eligibility status, down payment, the purpose of the loan (purchase or refinance).

The VA funding fee can be waived in certain circumstances.

Escrow/Impound

Property Taxes

VA lenders may require that you pay your property taxes every year through your lender. The lender will divide the annual property tax amount by 12 and include it in your monthly house payment.

Homeowners Insurance

Similarly to property taxes, your lender will likely pay your homeowners insurance annually. This premium is divided by 12 and added to your monthly payment.

Since these payments are made annually (sometimes semi-annually or quarterly), your lender will hold the funds in an account called an escrow or impound account. The lender then pays from this account when the bills are due.