Important information for Veterans about Interest Rate Reduction Refinancing Loans (IRRRL)

  • IRRRL stands for Interest Rate Reduction Refinancing Loan. You may also see it referred to as a “VA Streamline”. It is used to refinance an existing VA guaranteed loan to reduce the interest rate or to refinance an adjustable rate mortgage (ARM) to a fixed rate.
  • Requirements: The loan you are refinancing must have been guaranteed using your VA entitlement. The new loan will re-use the entitlement you originally used. A Certificate of Eligibility is not required.
  • Cost: An IRRRL may be done with “no money out of pocket” by including all costs into the new loan. Some lenders may say that VA requires certain closing costs to be charged and included in the loan. The only cost required by VA is a funding fee* of ½ % of the new loan amount. This may be paid in cash at closing or added to the new loan.