Compare current VA refinance rates

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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.

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.

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.

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.

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.