Government Loan Broker

VA Streamline (IRRRL) Fees Explained

Often times a mortgage transaction can be quite confusing when it comes to all the different fees that appear on a Good Faith Estimate. It is your right as a borrower to know what each fee means so that unallowable fees are not charged to you. Closing Costs which are normally associated with an Interest Rate Reduction Refinance Loan (IRRRL) are:

• Origination Fee*
• Discount Points
• Prepaid Taxes and Hazard Insurance Reserves
• Title Examination Fee
• Title Insurance Fee
• Flood Zone Determination
• Environmental Endorsements
• Recording Fees
• Special Mailing Fees (Example: FedEx or Courier Fees)
• VA Funding Fee

*The origination fee is limited to 1% of the loan amount and is known as the charge which goes directly to the lender or broker to facilitate a VA streamline refinance from start to finish. The lender or broker may charge this flat fee (origination) OR itemize the following fees not to exceed 1%:

• Application or Processing Fees
• Document Preparation Fee
• Loan Closing or Settlement Fee
• Notary Fees
• Interest Rate Lock-in Fee
• Tax Service Fee
• Reconveyance Fees
• Commitment or Marketing Fees
• Trustee’s Fees or Charges

Please note that if ANY of these other itemized fees listed here are charged to you the borrower the origination fee cannot exist.

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