VA IRRRL (Streamline Refinance) in Colorado: 2026 Rules

VA IRRRL: a VA-to-VA refinance with less paperwork

The Interest Rate Reduction Refinance Loan replaces your VA loan with a new one at a lower rate, usually without an appraisal or income verification.

Who it fits

It fits any VA borrower whose rate is meaningfully higher than today's market. The paperwork is light, the funding fee is low, and the rules protect you from a refinance that does not pay off.

Finding your break-even month

Divide the closing costs by the monthly savings to get your break-even month. VA requires it to be 36 months or less. The refinance calculator does the calculation, or we will run it for you.

Enter your current VA loan and the new one to see the monthly savings and whether the break-even month falls within 36 months.

Refinance calculator. Turn on JavaScript to change the numbers.

Monthly change−$251

$251 a month less. It breaks even after 1 year, 2 months, when the savings cover the costs.

Net savings over time

If you sell or refinance after7 years

1 year30 years

Interest and mortgage insurance saved, minus the refinance costs: what selling or refinancing again at that point would leave you ahead. It is largest when the new loan starts charging more interest a month than the current one would have. Press or drag the chart to move the look point.

Paid for After 7 years, the new loan is $16,499 ahead of keeping your current loan: the refinance has paid for itself.

Net savings are largest at 20 years, 5 months. From then the new loan charges more interest each month than the current loan would have, because more is still owed on it. Paying $70 extra a month ends the new loan when the current one would end, and the savings keep growing.

Payment now and after

	Current loan	New loan
Loan amount	$260,000	$263,500
Principal and interest	$1,874	$1,622
Mortgage insurance	$0	$0
Monthly total	$1,874	$1,622
Paid off in	27 years	30 years
Interest left to pay	$347,146	$320,569

A new 30-year term is the longest the loan can run, not how long you have to take. Keep paying $1,874, today's payment, and the new loan is paid off in 21 years, 3 months. That is 5 years, 9 months sooner than your current loan. To see it, set extra principal to $250.

Net savings counts interest and mortgage insurance on both loans and the cost of refinancing. Principal is not a cost, so it is left out. The new loan includes the $3,500 in costs.

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Calculators and guides

Common questions

Do I need an appraisal for a VA IRRRL?

Usually not. One may be needed in limited cases, like moving to an adjustable rate with financed points.

Can I use an IRRRL on a home I now rent out?

Yes. You only need to certify that you lived there at some point.

Can I take cash out?

No, beyond small adjustments. To take equity out, use a VA cash-out refinance.

What is the 36-month recoupment rule?

The monthly savings must pay back the closing costs within 36 months. The funding fee, taxes, insurance and prepaid items are not counted.