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What are today's VA refinance rates?
VA refinance rate trends
Adjust the graph below to see historical VA refinance rates tailored to your loan program, credit score, down payment and location.
Compare current VA refinance rates by loan type
The table below is updated daily with VA refinance rates for the most common types of home loans. Compare week-over-week changes to current VA mortgages and annual percentage rates (APR).
The APR includes both the interest rate and lender fees for a more realistic value comparison.
Conforming loans
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Government loans
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Jumbo loans
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VA refinance loan options
VA cash-out refinance
A VA cash-out refinance allows eligible homeowners to take cash out of their home equity by refinancing their current mortgage loan into a VA loan under different terms. The existing loan can be a non-VA loan, such as an FHA, USDA or conventional loan.
VA IRRRL
An Interest Rate Reduction Refinance Loan, also known as a streamline refinance loan or IRRRL, allows homeowners to reduce the interest rate on their current VA-backed loan by refinancing it with a new VA loan under different terms. Homeowners can also use an IRRRL to convert a VA loan from an adjustable-rate mortgage to a fixed rate to help stabilize monthly mortgage payments.
VA cash-out refinance vs VA IRRRL
| VA Cash-Out Refinance | VA IRRRL | |
|---|---|---|
| Current loan type | You can refinance an existing non-VA loan or VA loan into a VA loan. | Your existing loan must be a VA loan. |
| Residence | You must verify that you’ll live in the home you’re refinancing with the loan. | You must verify that you currently live in or used to live in the home covered by the loan. |
| Take cash-out | Yes, you can usually borrow up to 100% of your LTV on a cash-out refinance. | No, you cannot cash-out on home equity. |
| Change loan term | Yes, you can refinance an existing mortgage into a VA-backed loan under different terms (e.g. refinancing a 30-year fixed-rate conventional loan with a 15-year fixed-rate VA cash-out refinance loan). | Yes, you can refinance from a variable rate (ARM) into a fixed rate loan. Some VA lenders may also allow you to lengthen the loan term in certain instances. |
| Lower interest rate | Yes, you may be able to refinance to a lower interest rate depending on your current rate and the market rate. | Yes, you may be able to refinance to a lower interest rate depending on your current rate and the market rate. |
| Mortgage insurance | Mortgage insurance is not required. | Mortgage insurance is not required. |
| Home appraisal | Yes, appraisal is required. | No, appraisal isn’t required. VA lenders may run an Automated Valuation Model (AVM) to prove the home’s value and base the max loan amount off the value. |
| Income verification | Yes, income verification is required. | No, income verification is not required for qualification, but a VA lender may verify income is being earned (i.e. verification of employment, retirement, award letter, etc.) |
| Credit score | Most VA lenders require a credit score of at least 620. | Most VA lenders require a credit score of at least 620. |
| Loan-to-value ratio (LTV) | Most VA lenders require an LTV of 90% to 100%. | Most VA lenders will lend up to 110% of your home value. |
| VA funding fee | 2.3% to 3.6% of the loan amount | 0.5% of the loan amount |
| Closing costs | Closing costs typically range between 3% and 5% of the loan amount. | Closing costs typically range between 1% and 3% of the loan amount. |
| Days to close | Typically, it takes between 45 and 60 days to close. | Typically, it takes less than 30 days to close. |
Frequently asked questions about VA refinance rates
Who sets VA loan rates?
Rates on VA loans are set by private mortgage lenders, which may include mortgage companies, banks and other finance institutions that originate VA loans. Since the U.S. Department of Veterans Affairs (VA) backs a portion of the loan against default, they set the VA loan guidelines for the lender.
Who qualifies for a VA loan refinance?
Eligible service members who have served or are presently serving may qualify to refinance their current home loan. This may include surviving spouses, active-duty personnel, Reserve members, National Guard members and Veterans. Homeowners must meet the VA’s eligibility requirements and any additional requirements set by their lender.
How do I find the lowest VA refinance rate?
Compare current VA refinance rates from multiple lenders to help ensure that you receive the lowest VA refinance rate. When refinancing an existing loan, you’ll also need to pay closing costs and the VA funding fee on the new loan amount. Make sure to include the total closing cost estimate from each lender in your comparison to understand which loan refinance offer is best for you.
How do VA refinance rates compare with the rest of the market?
VA cash-out refinance rates and IRRRL rates are typically lower than FHA, USDA and conventional refinance rates. Rates may vary due to the type of loan, your credit score, your loan-to-value ratio (LTV) and factors outside of your control. See current refinance rates to compare VA refinance rates with other types of refinance loans.
- How much cash-out can you get on a VA refinance?
The VA allows you to borrow up to 100% of your home’s value in a VA cash-out refinance, but the loan-to-value (LTV) maximum is set by the lender or bank who is financing your loan — so that percentage may vary. Keep in mind, you’ll only get cash back equal to the difference owed versus your new home value minus any closing costs. For example, if you owe $200,000 and your home is valued at $500,000, a 90% LTV ratio would equal $450,000. You get the difference between your current balance ($200,000) and the equity ($450,000), minus closing costs and prepaid taxes and interest.
Is it a good idea to get a VA refinance?
The decision to get a VA refinance loan is entirely dependent on your unique situation. When you refinance with either a VA cash-out refinance or IRRRL, you’ll have to pay closing costs and most likely a VA funding fee, which can add up to thousands of dollars. Refinancing may make financial sense if you plan to:
- Take cash out of your home equity to pay off a high interest debt, make home improvements, pay for school or take care of any other needs
- Get a lower interest rate to lower your monthly mortgage payment
- Move from an adjustable-rate mortgage to a fixed-rate mortgage to stabilize your monthly payments
How do I get a VA refinance loan?
Whether you choose to get a VA cash-out refinance or an IRRRL, the processes to refinance will look a little something like this:
- Find a VA lender
- Present a copy of your VA Certificate of Eligibility (COE) to your lender
- Provide your lender with any needed financial information (e.g. copies of paycheck stubs, W2 forms, federal income tax returns, etc.)
- Follow your lender’s closing process, which will include closing cost fees
- How much are closing costs on a VA refinance?
Closing costs on a VA refinance may range anywhere between 1% and 5% of the loan amount, depending on the type of refinance. Homeowners who refinance with a VA loan are generally also required to pay a VA funding fee of 0.5% of the loan amount for a VA IRRRL or 2.3% to 3.6% of the loan amount for a VA cash-out refinance. Typically, VA IRRRLs have the lowest closing costs overall. Whether you get a VA IRRRL or VA cash-out refinance, most lenders will allow those who meet LTV guidelines to finance the total closing costs into the new loan balance and pay them off over time instead of paying the amount in full at closing.
- What is a VA funding fee?
A VA funding fee is a one-time payment that most VA loan borrowers are required to pay to keep the loan program running. The amount of the VA funding fee depends on the percent of your down payment and whether this is your first VA-backed home loan. The fee is generally paid at closing or financed into the mortgage. To get an estimate of your VA funding fee costs and mortgage expenses, visit Zillow’s VA mortgage calculator.
Refinance resources
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