Va Refi Calculator

VA Streamline Refinance (IRRRL) Calculator

Use this calculator to estimate potential savings or changes in your monthly payment by refinancing your existing VA loan with a VA Interest Rate Reduction Refinance Loan (IRRRL).

Current Loan Details

New Loan Details

(e.g., 0.5% for first-time IRRRL, 0.5% for subsequent IRRRL if no cash-out, etc. Check VA guidelines.)

(e.g., appraisal, title, recording fees, etc. if rolled into the loan)

function calculateVaRefi() { var currentPrincipal = parseFloat(document.getElementById("currentPrincipal").value); var currentAnnualPercentage = parseFloat(document.getElementById("currentAnnualPercentage").value); var currentRemainingTerm = parseFloat(document.getElementById("currentRemainingTerm").value); var newAnnualPercentage = parseFloat(document.getElementById("newAnnualPercentage").value); var newLoanTerm = parseFloat(document.getElementById("newLoanTerm").value); var vaFundingFeePercent = parseFloat(document.getElementById("vaFundingFeePercent").value); var otherClosingCosts = parseFloat(document.getElementById("otherClosingCosts").value); // Input validation if (isNaN(currentPrincipal) || isNaN(currentAnnualPercentage) || isNaN(currentRemainingTerm) || isNaN(newAnnualPercentage) || isNaN(newLoanTerm) || isNaN(vaFundingFeePercent) || isNaN(otherClosingCosts) || currentPrincipal <= 0 || currentRemainingTerm <= 0 || newLoanTerm = 100) { // Prevent division by zero or negative denominator document.getElementById("result").innerHTML = "VA Funding Fee percentage cannot be 100% or more."; return; } newLoanAmount = baseNewPrincipalPlusCosts / (1 – (vaFundingFeePercent / 100)); // 3. Calculate New Monthly Payment var newMonthlyPayment = calculateMonthlyPayment(newLoanAmount, newAnnualPercentage, newLoanTerm); // 4. Calculate Monthly Savings/Cost var monthlyDifference = currentMonthlyPayment – newMonthlyPayment; // 5. Calculate Total Savings/Cost over New Term (simplified for comparison) // This assumes the current payment would continue for the new loan term for comparison purposes. var totalSavingsOverNewTerm = monthlyDifference * (newLoanTerm * 12); // Display Results var resultsHtml = "

Refinance Estimates

"; resultsHtml += "Current Estimated Monthly Payment: $" + currentMonthlyPayment.toFixed(2) + ""; resultsHtml += "New Estimated Loan Principal (including financed costs): $" + newLoanAmount.toFixed(2) + ""; resultsHtml += "New Estimated Monthly Payment: $" + newMonthlyPayment.toFixed(2) + ""; if (monthlyDifference > 0) { resultsHtml += "Estimated Monthly Savings: $" + monthlyDifference.toFixed(2) + ""; resultsHtml += "Estimated Total Savings over New Term (" + newLoanTerm + " years): $" + totalSavingsOverNewTerm.toFixed(2) + ""; } else if (monthlyDifference < 0) { resultsHtml += "Estimated Monthly Cost Increase: $" + Math.abs(monthlyDifference).toFixed(2) + ""; resultsHtml += "Estimated Total Cost Increase over New Term (" + newLoanTerm + " years): $" + Math.abs(totalSavingsOverNewTerm).toFixed(2) + ""; } else { resultsHtml += "No significant change in monthly payment."; } document.getElementById("result").innerHTML = resultsHtml; }

Understanding the VA Streamline Refinance (IRRRL)

The VA Interest Rate Reduction Refinance Loan (IRRRL), often called a "VA Streamline Refinance," is a powerful tool for eligible veterans to refinance an existing VA loan. Its primary purpose is to help you obtain a lower annual percentage rate or convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, thereby reducing your monthly payment.

Key Benefits of a VA IRRRL:

• Lower Annual Percentage: The main goal is often to secure a lower rate, leading to significant monthly savings.
• Reduced Monthly Payments: A lower rate or extended term can result in a more affordable monthly housing expense.
• No Appraisal Required: In most cases, an IRRRL does not require a new appraisal, simplifying the process.
• No Income Verification: Lenders typically do not need to verify income or employment for an IRRRL, making it a "streamlined" process.
• Minimal Documentation: The paperwork involved is generally less extensive than a traditional refinance.
• Funding Fee: While there is a VA funding fee, it is often lower for IRRRLs (e.g., 0.5%) compared to other VA loan types, and it can be financed into the new loan.

Eligibility Requirements:

• You must have an existing VA-guaranteed loan on the property.
• You must certify that you previously occupied the property as your home.
• The refinance must result in a "net tangible benefit" to you, meaning it must improve your financial situation (e.g., lower payment, safer loan type).
• You cannot receive cash out from an IRRRL beyond what's needed to cover closing costs and the funding fee. For cash-out, you'd need a VA Cash-Out Refinance.

How the Calculator Works:

This calculator helps you compare your current VA loan's monthly payment with an estimated new payment under an IRRRL. It takes into account:

• Current Loan Principal: Your outstanding loan balance.
• Current Annual Percentage: The rate you are currently paying.
• Current Remaining Term: How many years are left on your existing loan.
• New Annual Percentage: The potential lower rate you could secure.
• New Loan Term: The proposed length of your new loan (e.g., 30 years, 15 years).
• VA Funding Fee (%): A percentage of the new loan amount paid to the VA. This fee can vary based on your service type, disability status, and whether it's your first or subsequent VA loan. It is typically financed into the new loan.
• Other Closing Costs ($): Additional expenses like title insurance, recording fees, and lender fees that can also be rolled into your new loan.

The calculator estimates your new total loan principal by adding your current principal, other closing costs, and the VA funding fee (which is calculated on the total new loan amount). It then calculates the new monthly payment and shows you the estimated monthly and total savings or cost increase over the new loan term.

Important Considerations:

• Break-Even Point: Consider how long it will take for your monthly savings to offset the closing costs and funding fee.
• Loan Term: While extending your loan term might lower your monthly payment, it could also increase the total amount of interest paid over the life of the loan.
• Lender Specifics: This calculator provides estimates. Actual rates, fees, and terms will vary by lender. Always get multiple quotes.
• No Cash-Out: Remember, an IRRRL is for rate reduction, not for taking cash out.

Consult with a VA-approved lender to get personalized quotes and determine the best refinance option for your situation.