VA IRRRL Calculator

A VA IRRRL (Interest Rate Reduction Refinance Loan) is a streamlined refinancing program for veterans and service members who already have a VA-backed mortgage. It allows you to refinance to a lower interest rate with minimal documentation, often without an appraisal, income verification, or credit underwriting.

The VA IRRRL funding fee is a flat 0.50% of the new loan amount. Veterans with a service-connected disability rating of 10% or higher are typically exempt from the funding fee. The fee can be paid upfront at closing or rolled into the loan balance.

The NTB test ensures a refinance genuinely benefits the borrower. For a fixed-rate to fixed-rate IRRRL, the new rate must be at least 0.50% lower than the current rate. Additionally, the borrower should recoup closing costs within a reasonable timeframe, often 36 months or less.

The break-even point is calculated by dividing total refinance costs (closing costs plus any financed funding fee) by your monthly payment savings. For example, if refinancing costs $5,000 and saves you $300 per month, you would break even in about 17 months.

Yes. You can roll both closing costs and the funding fee into the new loan balance. This increases your loan amount and monthly payment slightly, but eliminates out-of-pocket costs at closing. The calculator shows results for both scenarios.

In most cases, no. The VA IRRRL program is designed to be streamlined, meaning lenders typically do not require an appraisal, income verification, or credit underwriting. However, individual lender policies may vary.