The VA streamline refinance, tested against the rules that protect you
Fees in an IRRRL
Rule check
An IRRRL has closing costs and usually a VA funding fee unless you are exempt. VA says you can include costs in the new loan or take a slightly higher rate so the lender pays them. Either way, the costs feed the recoupment test, so ask for a full fee list early.
Last reviewed against the primary sources listed below.
Ask the lender
- Which fees are included in the recoupment figure?
- Is the funding fee financed, and am I exempt?
- Is any cost covered by a higher rate?
Funding fee
VA explains fees and exemptions on its funding fee page.
IRRRL questions
Can closing costs be rolled into an IRRRL?
VA says costs can be included in the new loan, or the rate can be set high enough for the lender to pay them.