Compare current VA refinance rates

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

• 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

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.

You typically need to wait six months before refinancing a VA loan. This policy, known as “seasoning,” also requires the borrower to have made monthly payments promptly.