Today’s VA Refinance Rates

A refinance mortgage loan backed by the Department of Veterans Affairs, called a VA refi loan, is for current or former members of the armed services who would like to refinance their mortgage.

A VA refi loan allows you to replace your current mortgage with a new one under better terms, such as a lower interest rate. You can use this option to turn your home equity into cash or refinance a non-VA loan into a VA-backed loan.

Today’s VA Refi Rates

The current average rate on a 30-year VA refinance loan is % compared to the rate a week before of %.

The 52-week high rate for a 30-year VA refinance loan was % and the 52-week low was %.

VA Refi Rates Insights

The Mortgage Bankers Association (MBA) expects mortgage rates to continue rising throughout 2022, especially in the wake of rising yields for the 10-year U.S. Treasury note and the 30-year bond.

Rates are predicted to rise because of the ongoing effort by the Federal Reserve to end its accommodative monetary policies and begin raising the federal funds rate to combat record consumer price inflation.

Types of VA Refinance Loans

There are two types of VA refinancing options.

  • Cash-out Refinance: This allows you to take cash out of your home or switch from a non-VA loan into a VA-backed loan.
  • Streamline Refinance: Also known as an Interest Rate Reduction Refinance Loan (IRRL), this product helps you reduce your interest rate or have fixed monthly payments by switching from an adjustable APR to a fixed-rate loan.

How Do I Qualify for a VA Refi Loan?

You will need to go through a bank, mortgage company or credit union to get a VA refinance loan.

In addition, you must have the Certificate of Eligibility (COE) you used to get your original VA loan. The VA says you should take this to your lender to show the prior use of your entitlement.

How Much Does a VA Refinance Loan Cost?

You will have to pay a funding fee, as well as any additional closing costs charged by your lender. For an IRRRL, it will be 0.5% of your loan amount. For cash-out refinancing, it will be 2.3% of your loan amount if it is your first time or 3.6% after first use.

Should I refinance a VA Loan?

Whether or not you should refinance depends on a number of factors, including how much equity you have built up in your home; if you need to make necessary home improvements; or if the rate on your existing loan is higher than current mortgage rates.

Pros and Cons of Refinancing a VA Loan

How to Apply for a VA Refi

In addition to your COE, you’ll need to provide your lender with:

  • Copies of paycheck stubs for the most recent 30-day period
  • W-2 forms covering the previous two years
  • A copy of your federal income tax returns for the previous two years
  • Any other information your lender may ask for such as bank statements

You can also expect the lender to order a home appraisal to assess the value of your home.

Frequently Asked Questions (FAQs)

Who sets VA loan rates?

Your lender determines the rate on your VA loan based on your credit score, loan amount and financial situation. You may qualify for a lower rate if you chose to put money down.

However, because of the 2018 Economic Growth, Regulatory Relief and Consumer Protection Act, the IRRRL program now says that if you are refinancing from a VA fixed-rate loan into another fixed-rate loan, your interest rate must drop by at least 0.5%. If you’re going from a fixed-rate loan to an ARM, the rate must fall by at least 2%.

Who has the lowest VA refinance rates?

Getting the lowest VA refi rate will depend on the lender and your personal financial situation like your credit score, debt levels and how much equity is in your house. You should compare offers from multiple lenders to help you negotiate, find the right deal for you and save in the long run. Get a feel for your top picks by understanding the current mortgage refi rates.

How soon can I refinance a VA loan?

The law requires that you must wait a minimum of 210 days before you can apply for a VA refinance loan. This is measured from the day you make your first payment on your existing VA loan to the closing date of your new one.


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