Compare current VA refinance rates

How to use our mortgage rate table

This table will show you estimated mortgage rates from different lenders, tailored to you. Fill out the fields above as accurately as possible so we can get a sense of where you live, what you’re looking to do and your financial situation. Based on the information provided, you will get custom quotes and be on your way to getting a new mortgage. This is an estimate; your actual rate will depend on a number of factors.

How Bankrate mortgage and refinance rates are calculated

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of refinance loans. The interest rate table below is updated daily to give you the most current refinance rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate rate averages.

Why trust Bankrate?

Bankrate has been the authority in personal finance since it was founded in 1976 as the “Bank Rate Monitor,” a print publication for the banking industry. Bankrate has been surveying and collecting information on mortgage and refinance rates from the nation’s largest lenders for more than 30 years. Top publications such as The New York Times, Wall Street Journal, CNBC and others depend on Bankrate as a trusted source of financial information, so you know you’re getting information you can trust.

Top 5 Bankrate VA refinance lenders

• JFQ Lending – Best broker
• Cardinal Financial Company – Best for low-credit score borrowers
• LowRates.com – Best overall
• First Mortgage Direct – Best online lender
• United Wholesale Mortgage – Best non-bank lender

Methodology

Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.

JFQ Lending – Best broker

JFQ Lending is a mortgage broker that offers a suite of refinancing options ranging from cash-out to VA streamline refinances. The broker is based in Scottsdale, Arizona, and is licensed in 39 states and Washington, D.C.

Strengths: If you’re interested in refinancing a VA loan (or into a VA loan) and find a competitor with a lower rate, JFQ Lending can match or beat that rate. (You’ll need to provide a copy of the loan estimate from the competitor.) The broker can connect you to both VA and FHA streamline refinancing, which allows you to take advantage of low rates with fewer hassles.

Weaknesses: You’ll have to contact JFQ Lending to get a quote for a VA or other type of loan; it doesn’t advertise rates on its website. In addition, the broker is licensed in many states, but not all.

Read Bankrate's JFQ Lending user reviews

Cardinal Financial Company – Best for low-credit score borrowers

Cardinal Financial Company, which also operates as Sebonic Financial, is a mortgage lender offering a range of loan products, including VA cash-out refinances and Interest Rate Reduction Refinance Loans (IRRRLs).

Strengths: Cardinal Financial’s Octane loan system allows you to compare interest rate quotes side by side, among other conveniences. Plus, you could qualify for a VA loan with a credit score as low as 550 (or 600 for manufactured housing).

Weaknesses: In order to view rates, you’ll need to contact a loan representative and register for the Octane system.

Read Bankrate's full Cardinal Financial mortgage review

LowRates.com – Best overall

LowRates.com, owned by Sun West Mortgage Company, is a national mortgage lender operating in 48 states in addition to Puerto Rico and the U.S. Virgin Islands.

Strengths: Borrowers can get prequalified for a loan with LowRates.com either online or by phone. Notably, the lender offers 24-hour support for those who need assistance or a preapproval outside of a 9-to-5 business day.

Weaknesses: This lender isn’t available in Georgia or Massachusetts.

Read Bankrate's full LowRates.com mortgage review

First Mortgage Direct – Best online lender

First Mortgage Direct is the online division of First Mortgage Solutions, based in Kansas City, Missouri.

Strengths: You can get prequalified in under a day, and, as with other lenders, if you find a favorable VA loan rate, First Mortgage Direct locks it in for you in case rates go up.

Weaknesses: First Mortgage Direct is only licensed in 17 states, so borrowers outside of this range will need to look elsewhere for refinancing.

Read Bankrate's full First Mortgage Direct review

United Wholesale Mortgage – Best non-bank lender

United Wholesale Mortgage is a wholesale lender available in all states and Washington, D.C. As a borrower, you won’t be able to refinance your VA or other type of mortgage directly with this lender, since it works solely with brokers and other types of lenders.

Strengths: You can refinance your current VA loan into one with a lower interest rate, often in less than 20 days.

Weaknesses: United Wholesale Mortgage’s minimum credit requirement for a VA loan is 620, which can be higher than some competitors’ standards. In addition, because it is a wholesale lender, you won’t have direct access to its products.

Read Bankrate's full United Wholesale Mortgage review

What you need to know about VA mortgage refinance

What is a VA refinance loan?

Like VA home loans, which are backed by the U.S. Department of Veterans Affairs, VA refinance programs are valuable benefits for those who have served or are serving in the armed forces. These programs enable veterans and current service members to refinance into a new mortgage when borrowing from VA-approved lenders.

VA refinances fall into two buckets:

1. VA streamline refinance loans

These mortgage loans allow homeowners with a current VA loan to refinance into a more affordable mortgage. True to its name, this program has little paperwork and typically has no out-of-pocket costs at the time of closing. VA streamline refinance rates are the mortgage rates for what are known as Interest Rate Reduction Refinance Loans (IRRRLs). They are called “streamline” because the lending approval process is simplified to reduce paperwork and fees, and to save time for borrowers who already have a VA mortgage.

2. VA cash-out refinance loans

These mortgage loans are available to qualified service members, veterans or spouses who currently have conventional loans, FHA loans, USDA loans or VA loans. With a VA cash-out refinance, you can refinance your current mortgage — regardless of whether it's a VA loan or a conventional loan— and get cash by borrowing against the equity you’ve built up in the home. That allows qualified borrowers to get cash that can be put toward other expenses including debts, education costs or home improvements. How much cash you can get depends on how much equity you have in your home, among other factors. All VA refinance loans that aren’t IRRRLs are considered cash-out loans, regardless of whether borrowers actually increase their principal balance.

Who qualifies for a VA refinance loan?

To be eligible for an IRRRL refinance loan, you need to have an existing VA loan for the property and meet the following requirements:

• You must refinance the same property for which you have the VA loan.
• You must not use the IRRRL proceeds to pay any loan other than the existing VA loan (no second mortgage).
• You must certify that you occupied the home at one time — you don’t need to live in the home currently.
• There are no underwriting requirements for IRRRLs from the VA, though the lenders might set minimum credit scores.

For a VA cash-out refinance, the requirements are different:

• You must live in the home you are refinancing.
• You can refinance any type of existing mortgage — VA loan, conventional or other mortgage — into a VA loan.
• You must qualify for a VA certificate of eligibility (COE).
• You must meet the VA’s and your lender’s credit and income requirements.
• Your lender will order a professional home appraisal.

VA refinance pros and cons

If you’re considering a VA loan refinance, the benefits generally include:

• No down payment or private mortgage insurance (PMI) requirement
• More flexible credit underwriting
• Refinance options such as an IRRRL

The drawbacks, however, include:

• A VA funding fee that can be between 0.5 percent and 3.6 percent, depending on the kind of refinance
• Specific service requirements — this isn’t a drawback if you meet them, but it means you won’t qualify for VA loans if you don’t.

Is it a good idea to refinance a VA loan?

The current low-rate environment makes it a good time to consider refinancing through a VA program, especially if your current rate is high.

You might use an IRRRL if you want to:

• Get a lower interest rate and lower your monthly payment.
• Switch from an adjustable-rate loan to a fixed-rate loan with a low interest rate.

A VA-backed cash-out refinance may be right if you want to:

• Take cash out of your home equity for any purpose.
• Refinance a non-VA loan into a VA-backed loan.

Warning: When considering whether to refinance, be wary of any unsolicited VA loan refinancing offers that sound too good to be true. The VA and the Consumer Financial Protection Bureau have warned about advertisements for VA refinancing that promise extremely low interest rates or the ability to skip payments, that are actually scams targeting veterans and service members.

Who sets VA loan rates?

Although VA loans are backed by the federal government, their terms are set by individual lenders. That means you’ll still need to apply with lending partners, and it’s a good idea to shop around with multiple institutions to make sure you’re getting the best possible loan terms.

How do VA rates compare to the rest of the market?

VA loans tend to have slightly better rates than standard mortgages, because they are seen as less risky to lenders thanks to the federal guarantees.

How much does a VA refinance cost?

You may be able to get a VA refinance without paying anything out-of-pocket at closing time. That doesn’t mean the refi is fee-free, but you can typically roll associated costs into the new loan, either through increasing the loan amount or receiving a slightly higher APR.

With (IRRRLs), you won’t have any appraisal or underwriting fees. You’ll also save money since a VA refinance doesn't require mortgage insurance. VA cash-out refis do require underwriting and appraisals, however.

You will pay a VA funding fee for both IRRRLs and VA cash-out refis. The fee is meant to reduce the burden on taxpayers of providing low-cost loans to veterans and service members. Veterans with service-related disabilities and their spouses may be exempt from the funding fee.

When refinancing from a fixed-rate VA loan, your new interest rate must be at least 50 basis points less than the original rate, to comply with the Protecting Veterans from Predatory Lending Act of 2018. If you refinance from a fixed-rate to an adjustable-rate loan, the new loan must be at least 200 basis points less.

Before deciding to refinance, do the math to make sure your savings over the life of the loan (or how long you plan to keep the house) outweigh the costs of refinancing. To estimate your new monthly payment, you can plug your new interest rate into the Bankrate Mortgage Calculator. To see whether it’s worthwhile, divide your estimated closing costs by the amount you expect to save each month. That will give you the number of months before you break even and start to rack up savings.

How do I refinance a VA loan?

The VA doesn’t lend money directly, so whether you choose to refinance with an IRRRL or a VA cash-out refinance, you’ll need to work with a VA-approved lender.

1. Find a VA-approved lender in your state

Learn about the lender’s business practices. Look them up online and be wary of excessive complaints or other red flags. You can search the CFPB complaint database and the database from the Nationwide Mortgage Licensing System (NMLS) to verify.

2. Gather important documents

You don’t need to provide your COE for an IRRRL, but you do need to provide one for a VA cash-out refinance. You can find your COE through the VA eBenefits portal.

For a VA cash-out refinance, in addition to a COE, you’ll typically need these items for the underwriting process:

• Recent paystubs
• W-2 forms
• Federal income tax returns

3. Obtain appraisal, if required

For a VA cash-out refinance, the lender is likely to order a home appraisal. In this process, an appraiser will assess your home to determine its market value.

4. Pay closing costs

In addition to standard closing costs for a cash-out refinance, both a cash-out refi and an IRRRL require the borrower to pay a VA funding fee, which is 0.5 percent for an IRRRL and 2.3 percent for a first-time cash-out refi and 3.6 percent for subsequent uses.

Why is it important to shop around?

As mentioned before, individual lenders set their own terms for VA loans, so you’ll want to compare offers from different institutions to make sure you’re not only getting the best rate, but also the best other loan terms as well.

Learn more about VA loans

• Refinance calculator
• How to refinance your VA loan
• Compare mortgage lenders
• VA loan resources