VA IRRRL Recoupment Calculator
Check a VA streamline refinance (IRRRL) against VA’s tests: 36-month fee recoupment, the minimum rate reduction, and loan seasoning. See your new payment and how long it takes to recoup your costs.
VA IRRRL Calculator
36-month recoupment · Rate test · Seasoning
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How to Use the VA IRRRL Calculator
- Enter your current loan balance, interest rate and principal and interest payment.
- Enter the new interest rate, loan term and rate type.
- Enter fees and closing costs, lender credits, and whether you will roll costs into the loan.
- Enter your first payment due month and payments made, then click Check My IRRRL.
The VA IRRRL calculator checks the 36-month recoupment, rate reduction and seasoning tests and shows your new payment. Run the VA IRRRL calculator with each lender quote to compare offers.
VA’s IRRRL Tests
36-month fee recoupment
Your fees and closing costs must be recouped within 36 months through the lower monthly principal and interest payment. Taxes, amounts held in escrow and the VA funding fee are not counted. Lender credits reduce the costs.
Minimum rate reduction
Going from a fixed rate to a fixed rate, the new rate must be at least 0.50% lower. Going from a fixed rate to an adjustable rate, it must be at least 2.00% lower.
Loan seasoning
The current loan must have six consecutive monthly payments made, and the new loan can’t close before 210 days after the first payment due date on the current loan, whichever comes later.
Your recoupment disclosure
VA also requires a statement showing how long it takes to recoup all closing costs, including the funding fee. This calculator shows that figure as “Recoup of all costs, including funding fee.”
VA IRRRL FAQ
What is the VA funding fee on an IRRRL?
The IRRRL funding fee is 0.5% of the loan amount. Veterans who receive VA disability compensation, and some others, are exempt.
What if my payment does not go down?
If the principal and interest payment does not drop, the costs can’t be recouped through a lower payment and the recoupment test is not met. Shorter-term refinances can raise the payment; talk to your lender about how VA treats them.
Can I roll closing costs into an IRRRL?
Yes. Allowable fees and closing costs and the funding fee can be included in the loan, with no more than two discount points financed.
