VA Loans
VA IRRRL Recoupment Rule
The VA IRRRL recoupment rule is designed to ensure refinance costs are recovered through payment savings within an allowed timeframe.
What The VA IRRRL Is
The Interest Rate Reduction Refinance Loan allows veterans to refinance existing VA mortgages with minimal documentation.
The Recoupment Rule
VA guidelines require that closing costs must be recovered through monthly payment savings within a specific timeframe.
Why It Exists
This rule prevents refinances that increase the long-term cost of the loan.
How The Calculation Works
Monthly savings must offset closing costs within the allowed recoupment period.
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