What closing costs apply to a VA IRRRL?
The IRRRL funding fee (small fixed percentage), title and recording fees, prepaid taxes and insurance, and lender fees. VA limits how much can be rolled into the loan and requires a measurable benefit after costs.
What this actually means.
Allowable IRRRL costs: the funding fee (financed in most cases), title insurance, recording fees, prepaids for the new escrow, and lender origination within VA's structure. Discount points can be rolled into the loan within defined caps. The VA's net-tangible-benefit test usually requires the rate reduction (or term-related savings) to recover closing costs within a defined window. Subject to VA guidelines.
Where this can move.
VA seasoning rules, net-tangible-benefit recoupment, current loan type, equity, credit, rate environment, and IRRRL vs cash-out eligibility can change the answer.
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Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.