What Is a VA IRRRL? Current Rates, How It Works and More

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If you currently have a VA loan, you may qualify for a refinance using the VA interest rate reduction refinance loan (IRRRL) program. A VA IRRRL makes it quick and easy to replace your existing VA mortgage with a new loan at a lower rate or shorter term. You also have the option to roll your closing costs into the new loan.

Here’s what you need to know before getting started on the path to better mortgage terms with a VA IRRRL.

How does the VA IRRRL program work?

The VA IRRRL is a refinancing program that helps veterans and service members with a VA loan lower their mortgage rate — all with less paperwork and faster approval than a traditional refinance. You can also choose a different repayment term or switch from an adjustable-rate mortgage (ARM) to a fixed-rate option.

What makes the VA IRRRL different from other refinances?

Also known as the “VA streamline refinance,” the program permits you to skip the income documentation and VA home appraisal requirements you’d typically need to satisfy with a regular VA refinance.

Eligible borrowers can roll VA closing costs into an IRRRL and, in some cases, even add up to $6,000 toward energy-efficient improvement expenses to the balance.

What you need to know about a “net tangible benefit”

Although the VA IRRRL program comes with fewer credit and appraisal requirements than traditional refinance loans, it comes with a unique requirement: You’ll need to prove that refinancing comes with a “net tangible benefit,” meaning that it’s financially beneficial to you.

Here are the basic guidelines:

Your current VA loan	Your IRRRL refinance loan type	Net tangible benefit guideline	Appraisal required?
Fixed rate	Fixed rate	The new loan’s interest rate must be at least 0.50% lower than your current loan’s rate.	No
Fixed rate	Adjustable rate	The new loan’s interest rate must be at least 2% lower than your current loan’s rate. In most cases, the lower interest rate may not stem solely from a discount point purchase.	Yes, but it doesn’t have to be a VA-specific appraisal

VA IRRRL rates: Today’s rate outlook

Across all loan amounts, the average VA IRRRL interest rate was 6.10% during the first 10 months of 2025.

Loan amount	Average interest rate
$0 – $99,999	6.33%
$100,000 – $199,999	6.41%
$200,000 – $299,999	6.17%
$300,000 – $399,999	6.04%
$400,000 – $499,999	5.87%
$500,000 – $599,999	5.83%
$600,000 – $699,999	5.75%
$700,000 – $799,999	5.73%
$800,000 – $899,999	5.95%
$900,000 – $999,999	6.12%
$1,000,000 – $1,999,999	6.06%

Source: Average interest rates offered on the LendingTree platform between Jan. 1, 2025, and Oct. 17, 2025.

Find the best VA IRRRL rates today

How much can you save with a VA IRRRL?

Even a 0.50% rate reduction can save you tens of thousands of dollars over the life of your loan This example presumes you have a $270,000 balance on your current loan . The table below shows monthly payments and total interest costs at different rates, so you can see exactly what refinancing could mean for your budget.

Refinance interest rate	Monthly payment	Total interest (over 30 years)	Monthly savings vs. 6.55%	Annual savings
6.33%	$1,755	$333,544	$461	$5,532
6.00%	$1,619	$312,763	$597	$7,164
5.75%	$1,576	$297,233	$640	$7,680

Calculate your potential VA IRRRL savings using our refinance calculator:

Pros and cons of a VA IRRRL

Pros

Potential to save money: Unless you’re switching from an ARM to a fixed-rate mortgage, VA IRRRL rates are required to be lower than your existing mortgage rate. Securing a loan with a lower interest rate will likely help you save money on your monthly payment.
Fewer closing costs: Many closing costs, including the VA funding fee, can be added to your loan balance and paid over time. You also have the option to finance up to $6,000 for energy-efficient improvements, as long as they’re completed within six months of your loan closing.
Lower funding fee: While the funding fee on a VA purchase loan can extend as high as 3.30%, the funding fee on an IRRRL is only 0.50%.

Cons

Loan program restrictions: You must have an existing VA loan to qualify for a VA IRRRL. If you have another type of home loan, you won’t qualify to participate in this loan program, even if you’re a military borrower.
No cash-out option: The VA streamline refinance loan doesn’t allow you to leverage your home equity to borrow more than you owe on your home. If that’s your goal, the VA cash-out refinance program can be a better fit.
Not available to borrowers in default: As part of the loan approval process, your lender must check if you’ve previously defaulted on any federally backed loans, including student loans. If that’s the case, you likely won’t qualify.

VA IRRRL eligibility requirements

You won’t need to meet any income or home value requirements, but there are other specific hoops you’ll need to jump through to qualify for a VA IRRRL. Here’s what you need:

Seasoning

At least 210 days must have passed since you took out your current VA mortgage.

CAIVRS check

Lenders must check the Credit Alert Interactive Verification Reporting System (CAIVRS) database to confirm you don’t have any defaulted federal debt, including:

Federal student loans
Small Business Administration (SBA) loans
Federal Housing Administration (FHA) loans
U.S. Department of Agriculture (USDA) loans

Break-even point

The lender must confirm that you’ll reach your break-even point — or recoup your closing costs — within 36 months.

For example, if you’re saving $100 per month, your closing costs can’t exceed $3,600 to qualify ($3,600 divided by $100 per month savings equals a 36-month break-even point). If it takes you longer to break even, your IRRRL application could be denied.

Net tangible benefit

As we covered above, your new principal and interest payment must be lower than your current payment, unless you’re refinancing from an ARM to a fixed-rate loan, financing energy-efficient upgrades or shortening your repayment term.

Funding fee

VA borrowers only have to pay a VA funding fee equal to 0.50% of the loan balance for a VA streamline refinance. The funding fee is charged to offset the cost of the program to taxpayers and typically costs between 2.15% and 3.30% for a regular refinance.

Occupancy

You’ll need to certify that you’ve used the property you’re refinancing as your primary residence. You can either currently occupy the property or pledge that you lived there in the past.

How to apply for a VA streamline refinance loan

If you’ve decided that refinancing is the right move for you, the next step is to apply for your IRRRL loan. You’ll need to talk to a lender to get the process started, but here’s an overview of the steps you can expect to take:

Dig up your closing papers. Lenders will need to verify the date you closed on your existing VA loan, so having your closing paperwork handy will save time.
Provide a current mortgage statement. You’ll need this so the lender can order a payoff to replace your current mortgage with a new one.
Check your certificate of eligibility. Most military borrowers can obtain their certificate of eligibility (COE) online to prove they still have enough entitlement for the refinance. VA borrowers with a service-related disability can also verify whether they’re exempt from the 0.50% funding fee.
Shop for a lender. Not all lenders are VA-approved, so you may need to contact multiple mortgage companies to get competitive VA IRRRL rates. Try a VA rate comparison tool to speed up the process and have lenders call you.
Decide how to handle your closing costs. Let the lender know if you want to add your closing costs to the loan balance or pay them out of pocket.
Review your closing disclosure and sign your documents. You should receive a closing disclosure at least three business days before your closing date. Make sure the figures are correct and provide your lender with any final items requested.

Is a VA streamline refinance right for you?

A VA IRRRL is likely a good fit if:

Your rate situation:
- Your current rate is at least 0.50% higher than today’s rates
- You have an ARM that’s about to adjust
Your timeline:
- You plan to stay in your home for at least two to three years
- You’ve made at least six payments on your current VA loan
- You’re not planning to sell in the immediate future
Your goals:
- You need lower monthly payments to improve cash flow
- You want to switch from an ARM to a fixed-rate loan for stability
- You plan to pay off your mortgage faster with a shorter term
- You’d like to finance energy-efficient home improvements

Think twice about refinancing with an IRRRL if:

The timing isn’t right:
- You’re planning to move within one to two years (you may not recoup closing costs)
- You’re within five to seven years of paying off your current loan
- You recently refinanced (within the last 210 days)
Your loan situation:
- You need cash from your home equity
- Your current loan has a prepayment penalty
- You’re in forbearance or have recent late payments
The math doesn’t work:
- Your existing mortgage rate isn’t much higher than current rates
- You won’t be able to lower your monthly payment
- Your break-even point is longer than you plan to stay in the home
- Your total closing costs exceed 36 months’ worth of payment savings

Frequently asked questions

There’s no limit to the number of times you can refinance through the VA IRRRL program, as long as you wait the required 210 days and can prove that refinancing provides a net tangible benefit each time.

The maximum term of a VA IRRRL can vary. It’s typically 10 years longer than the term of the loan being refinanced. For example, if the old loan has a 15-year term, the new loan term can’t exceed 25 years. However, at no point can the term exceed a maximum of 30 years and 32 days.

Yes, but only two mortgage points can be rolled into the loan amount. Any additional points must be paid from your own funds.

Closing costs on a VA IRRRL typically cost between 2% and 6% of the new loan amount.

For the most part, you can’t take cash out with the IRRRL program. The one exception is if you plan to borrow up to the $6,000 limit to pay for energy-efficient improvements that can be completed within six months of closing. If you want to take cash out, consider the VA cash-out refinance program instead.

VA loans must be “seasoned,” which means they must be held by the borrower for a set amount of time before a refinance can take place. The VA requires you to wait 210 days after your first payment due date on your existing loan.

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