Free VA Tool
VA IRRRL Refinance Calculator
The VA streamline refinance, penciled honestly: your new payment, monthly savings, the 0.50% IRRRL funding fee, and whether the numbers pass the VA's 36-month recoupment rule.
Current Payment (P&I)
$2,183
New Payment (P&I)
$2,002
IRRRL Fee (0.5%) + Costs
$5,100
Monthly Savings
$181
You'd recoup your costs in about 29 months — inside the VA's 36-month recoupment requirement.
The IRRRL is the VA’s streamline refinance: no appraisal or income re-verification in most cases, but it must produce a real benefit and fee recoupment within 36 months. Financing the fee and costs raises your balance — shown above. Educational estimate only; not a loan offer or quote.
Why the IRRRL is the easiest refinance in mortgage lending
The Interest Rate Reduction Refinance Loan exists for one purpose: getting an existing VA borrower into a lower rate with minimal friction. In most cases there’s no appraisal, no income re-verification, and a funding fee of just 0.50% — versus 3.30% on a subsequent-use purchase. Your existing entitlement carries over automatically.
The guardrail is the 36-month recoupment rule: your costs must be paid back by your monthly savings within three years, or the loan generally can’t close. It’s a borrower-protection rule — and it’s built into the calculator above as a pass/fail verdict.
IRRRL savings by rate drop (reference table)
Monthly savings and recoup timelines on a $325,000 balance with $3,500 in closing costs plus the 0.5% funding fee, both financed:
| Rate Change | Old Payment | New Payment | Monthly Savings | Recoup (mo) | 36-Month Rule |
|---|---|---|---|---|---|
| 7.5% → 7% | $2,272 | $2,196 | $76 | 68 | Fails |
| 7.5% → 6.75% | $2,272 | $2,141 | $131 | 40 | Fails |
| 7.5% → 6.5% | $2,272 | $2,087 | $186 | 28 | Passes |
| 7.5% → 6% | $2,272 | $1,979 | $293 | 18 | Passes |
30-year fixed, $325,000 balance, $3,500 closing costs + 0.50% IRRRL funding fee financed. Computed with the same math as the calculator above; your numbers will differ.
Good to Know
Questions this tool raises
What is a VA IRRRL?
The Interest Rate Reduction Refinance Loan — the VA's streamline refi for existing VA loans. No appraisal or income re-verification in most cases, a reduced funding fee of just 0.50%, and a fast close. It exists to lower your rate or payment with minimal friction.
What is the 36-month recoupment rule?
VA rules require that your fees and costs be recouped through payment savings within 36 months, or the loan generally can't close. This calculator shows your recoup timeline directly — it's the pass/fail line built into the tool.
Do I need my Certificate of Eligibility again?
No — the IRRRL rides on the entitlement already backing your current VA loan. You don't need to re-establish eligibility, and in most cases you don't need a new appraisal either.
Can I skip the funding fee?
Veterans receiving VA disability compensation are exempt from the funding fee on an IRRRL, exactly as on a purchase — check the exemption box in the calculator to see your numbers without it.
When does an IRRRL make sense?
The classic trigger is a rate meaningfully below your current one — enough that savings recoup costs within 36 months and the lifetime math wins. If you bought when rates were high, set a rate alert with us and we'll flag your IRRRL moment.