When getting a VA IRRRL (Interest Rate Reduction Refinance Loan), there are certain fees that can be rolled into the loan balance and financed over the life of the loan. These fees include:

1. Closing costs: These are the costs associated with originating and closing the loan, such as origination fees, appraisal fees, and title search fees.
2. The VA funding fee: This is a one-time charge that is added to the loan balance at closing. The fee is a percentage of the loan amount and is intended to offset the costs of the VA loan program.
3. Prepayment penalties: Some lenders may charge a penalty if the loan is paid off early. These penalties can be rolled into the loan balance and financed over the life of the loan.
4. Upfront mortgage insurance premium: If you are refinancing and have less than 20% equity in your home, you may be required to pay an upfront mortgage insurance premium. This can be financed into the loan balance.
5. Energy-efficient improvements: Some lenders may allow borrowers to roll the cost of energy-efficient improvements into the loan balance.

It’s important to note that not all lenders will allow you to roll all of these fees into the loan, and the specifics of what fees can be financed will vary from lender to lender.

A refinance and an Interest Rate Reduction Refinance Loan (IRRRL) are both types of loans that can be used to lower the interest rate on an existing mortgage. However, there are some key differences between the two.

A refinance is a new mortgage that pays off an existing mortgage. The new mortgage typically has a lower interest rate, which results in a lower monthly payment. A refinance can also be used to change the loan term, or to cash out some of the equity in the home.

An IRRRL, also known as a VA Streamline Refinance, is a specific type of refinance that is only available to veterans who already have a VA loan. The IRRRL program is designed to help veterans lower the interest rate on their existing VA loan, without the need for a credit check or appraisal. The loan process is faster and less complicated than a traditional refinance.

There are several reasons why veterans might choose to refinance their VA mortgage. Some common reasons include:

1. To lower the interest rate: If interest rates have dropped since you obtained your VA mortgage, you may be able to refinance to a lower rate, which can result in a lower monthly payment.
2. To shorten the loan term: Refinancing to a shorter loan term, such as 15 years instead of 30 years, can result in a higher monthly payment, but you will pay off the loan faster and pay less in interest over the life of the loan.
3. To cash out some equity: Some veterans may choose to refinance to take advantage of the equity they have built up in their home. By cashing out some of this equity, veterans can access funds to pay off debt, make home improvements, or invest in other opportunities.
4. To remove a co-borrower: If you originally took out your VA loan with a co-borrower, you may be able to refinance to remove the co-borrower and assume the loan on your own.
5. To get rid of Mortgage Insurance: Some veterans might refinance their loan to get rid of mortgage insurance, which can be a significant cost savings over the life of the loan.

It’s important to keep in mind that, refinancing a loan comes with costs, such as closing costs, and you should consider if the benefits outweigh the costs. It’s recommended to consult with a lender, who can help you understand the fees and process, and if you are eligible for any exemptions.

The VA IRRRL (Interest Rate Reduction Refinance Loan) funding fee is a one-time charge that is added to the loan balance at closing. The fee is a percentage of the loan amount and is intended to offset the costs of the VA loan program.

There are two ways to pay the VA funding fee:

1. In cash at closing: The funding fee can be paid with cash at the time of closing. This means that you will need to have the fee amount available in cash or from a personal loan to pay for it upfront.
2. Financed into the loan: The funding fee can be financed into the loan balance, which means that it will be added to the loan amount and included in the monthly mortgage payments. This option allows veterans to pay the fee over the life of the loan, rather than paying it all at once.

It’s important to note that veterans with a service-connected disability may be exempt from paying the funding fee altogether. Additionally, some lenders may offer the financing of the funding fee as a no-cost option, which means that they will add it to the loan balance but will not charge the veterans a higher interest rate to do so.