# IRRRL (VA streamline)

> An IRRRL is the VA’s streamline refinance: a new VA loan replacing your current one at a lower rate, with rate, seasoning and recoupment rules set by law.

URL: https://mail.mortgage-math-us.com/glossary/irrrl/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**An IRRRL (Interest Rate Reduction Refinance Loan)** is the VA’s streamline refinance: it replaces an existing VA-backed loan with a new VA loan, usually at a lower rate and with less paperwork than a regular refinance. You must certify that you live in the home now or did in the past.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Fixed-to-fixed: new rate at least this much lower | 0.5% | [38 U.S.C. 3709](https://www.govinfo.gov/link/uscode/38/3709) | Oct 28, 2026 |
| Fees and costs must be recouped within | 36 months | [38 U.S.C. 3709](https://www.govinfo.gov/link/uscode/38/3709) | Oct 28, 2026 |
| Consecutive monthly payments made first | 6 | [38 U.S.C. 3709](https://www.govinfo.gov/link/uscode/38/3709) | Oct 28, 2026 |
| Funding fee | 0.5% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Apr 7, 2023 |

## Rules set by law

Under 38 U.S.C. 3709, a fixed-to-fixed IRRRL needs a rate at least 0.5% lower, in percentage points, than the old one (2% when moving to an adjustable rate). The loan being refinanced must have 6 consecutive monthly payments and be at least 210 days past its first payment due date. Fees and closing costs — not counting taxes, escrow amounts or the VA funding fee — must be recouped through lower payments within 36 months. The [streamline refinance guide](https://mail.mortgage-math-us.com/refinancing/streamline-refinance/) compares the IRRRL with FHA’s version.

## Example: the recoupment test

A $300,000 balance at an example rate of 7.99% with 28 years left, refinanced to a 30-year loan at 7.24%, cuts principal and interest by $194 a month. With $4,000 of closing costs, recoupment takes 21 months, within the limit of 36 months. The funding fee of 0.5%, $1,500 here, can be added to the loan.

## Related terms

- [VA loan](https://mail.mortgage-math-us.com/glossary/va-loan/) and [VA funding fee](https://mail.mortgage-math-us.com/glossary/va-funding-fee/)
- [Streamline refinance](https://mail.mortgage-math-us.com/glossary/streamline-refinance/) and [break-even point](https://mail.mortgage-math-us.com/glossary/break-even-point/)

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) — VA funding fee, Interest Rate Reduction Refinance Loan (IRRRL) (Apr 7, 2023)
- [38 U.S.C. 3709](https://www.govinfo.gov/link/uscode/38/3709) — VA IRRRL: fees and closing costs must be recouped within; VA IRRRL fixed-to-fixed: new rate at least this much lower; VA IRRRL fixed-to-adjustable: new rate at least this much lower (Oct 28, 2026)
- [VA: Interest Rate Reduction Refinance Loan](https://www.va.gov/housing-assistance/home-loans/loan-types/interest-rate-reduction-loan/)
- [38 U.S.C. 3709: Refinancing of housing loans](https://www.govinfo.gov/link/uscode/38/3709)

_General information, not financial advice._