VA IRRRL Viability Calculator

2% is a reasonable planning default for a streamlined IRRRL, not a fixed rule. IRRRL closing costs cover lender, title, and recording charges plus prepaids, and typically land somewhere around 2%–5% of the loan amount depending on the lender and your state. This figure is separate from the VA funding fee below.

What moves it:

• Lender fees — origination/underwriting can be a flat fee or up to 1% of the loan; some lenders waive it. VA caps lender origination at 1%.
• Rate vs. cost trade-off — a slightly higher rate can buy a lender credit that covers most costs (a "no-cost" IRRRL), lowering this number toward 0% but shrinking your monthly savings.
• Title & state charges — title insurance, recording, and transfer taxes vary widely by state.
• Prepaids & escrow — funding a new escrow account adds cash to close, but escrowed taxes/insurance are excluded from VA's recoupment math.

Set this to your Loan Estimate figure once you have real quotes. Lowering it lowers the minimum existing rate needed for viability.

The VA funding fee is a one-time charge separate from closing costs. For an IRRRL it is 0.5% of the loan for most borrowers and is usually financed into the new balance. It's excluded from the 36-month recoupment test by statute — only the other closing costs have to be recouped.

You're exempt (0%) if you are:

• A veteran receiving VA compensation for a service-connected disability;
• A veteran who is entitled to that compensation but is receiving retirement or active-duty pay instead;
• A veteran rated eligible after a pre-discharge exam, or entitled based on a proposed/memorandum rating;
• A surviving spouse of a veteran who died in service or from a service-connected disability (or receiving DIC);
• A service member with a Purple Heart on active duty.

Exemption is confirmed on your Certificate of Eligibility (COE). Flip the toggle to Exempt to remove the fee from the math.