6.986% APR 

Compare Today's VA Refinance Rates

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Applied Filters: Good (720-739), 30-year fixed, Single family home, Primary residence, VA loans, cash-out
Applied Filters: Good (720-739), 30-year fixed, Single family home, Primary residence, VA loans, cash-out
License information7 results:
30-year fixed
Central Bank
EXPLORE QUOTE
Central Bank: NMLS#407985
Lowest APR
Lowest monthly payment
VA 30-year fixed
Central Bank
4.0
NerdWallet rating
APR
6.35% 
Interest rate
6.124% 
Mo. payment
$2,173 
Insurance $0
Total fees
$8,440 
About this lender
Pros
  • Among the best when it comes to online convenience.
  • Offers a full selection of mortgage types and products, including jumbo, home equity, and government loans.
  • Claims to offer preapproval within 24 hours of loan application.
Cons
  • You'll have to complete a loan application to see mortgage interest rates.
  • Bank branch locations limited to the Midwest.
  • Does not offer home equity lines of credit.
NBKC: NMLS#409631
Great for first-time home buyers | digital convenience | customer service
VA 30-year fixed
NBKC
APR
6.706% 
Interest rate
6.5% 
Mo. payment
$2,260 
Insurance $0
Total fees
$6,349 
About this lender
Visit lender's website | Call (888) 871-2381
Pros
  • Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.
  • Offers low rates and fees compared with other lenders, according to the latest Federal data.
  • Displays customized rates, with fee estimates, without requiring contact information.
Cons
  • HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.
NBKC: NMLS#409631
Great for first-time home buyers | digital convenience | customer service
Conventional 30-year fixed
NBKC
APR
7.172% 
Interest rate
7.125% 
Mo. payment
$2,359 
Insurance $0
Total fees
$1,652 
Pros
  • Displays customized rates, with fee estimates, without requiring contact information.
  • Efficient customer service over the phone or through online chat.
Cons
  • Physical branches are limited to the Kansas City metro area.
New American Funding: NMLS#6606
Great for first-time home buyers | customer service
VA 30-year fixed
New American Funding
APR
7.249% 
Interest rate
6.99% 
Mo. payment
$2,377 
Insurance $0
Total fees
$9,154 
Pros
  • Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
  • Its home equity line of credit can be used for an owner-occupied or second home.
  • Offers a program to enable buyers to make cash offers.
Cons
  • Mortgage origination fees tend to be on the high end, according to the latest federal data.
Central Bank: NMLS#407985Conventional 30-year fixed
Central Bank
4.0
NerdWallet rating
APR
7.378% 
Interest rate
7.375% 
Mo. payment
$2,418 
Insurance $0
Total fees
$108 
About this lender
Pros
  • Among the best when it comes to online convenience.
  • Offers a full selection of mortgage types and products, including jumbo, home equity, and government loans.
  • Claims to offer preapproval within 24 hours of loan application.
Cons
  • You'll have to complete a loan application to see mortgage interest rates.
  • Bank branch locations limited to the Midwest.
  • Does not offer home equity lines of credit.
New American Funding: NMLS#6606
Great for first-time home buyers | customer service
Conventional 30-year fixed
New American Funding
APR
7.924% 
Interest rate
7.875% 
Mo. payment
$2,538 
Insurance $0
Total fees
$1,629 
Pros
  • Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
  • Its home equity line of credit can be used for an owner-occupied or second home.
  • Offers a program to enable buyers to make cash offers.
Cons
  • Mortgage origination fees tend to be on the high end, according to the latest federal data.
Rocket Mortgage, LLC: NMLS#3030
Great for digital convenience | customer service
Conventional 30-year fixed
Rocket Mortgage, LLC
APR
8.288% 
Interest rate
8.25% 
Mo. payment
$2,630 
Insurance $0
Total fees
$1,250 
About this lender
Pros
  • Streamlined online process with document and asset retrieval capabilities.
  • Often ranks high in customer satisfaction surveys.
Cons
  • Getting a customized interest rate requires a credit check, which can affect your credit score.
  • Origination fees are on the high side compared with other lenders, according to the latest federal data.

About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.


Mortgage rate trends (APR)

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NerdWallet’s mortgage rate insight

6.986%

30-year fixed-rate

On Saturday, May 25, 2024, the average APR on a 30-year fixed-rate mortgage fell 3 basis points to 6.986%. The average APR on a 15-year fixed-rate mortgage rose 4 basis points to 6.252% and the average APR for a 5-year adjustable-rate mortgage (ARM) fell 6 basis points to 7.770%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 4 basis points higher than one week ago and 8 basis points higher than one year ago.

A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.

Current mortgage and refinance rates

ProductInterest RateAPR
30-year fixed-rate6.908%6.986%
20-year fixed-rate6.638%6.735%
15-year fixed-rate6.120%6.252%
10-year fixed-rate5.797%5.965%
7-year ARM6.913%7.685%
5-year ARM6.776%7.770%
3-year ARM8.125%8.355%
30-year fixed-rate FHA6.151%6.913%
30-year fixed-rate VA6.056%6.449%

Data source: ©Zillow, Inc. 2006 - 2021. Use is subject to the Terms of Use

Best Mortgage Refinance Lenders

Lender
NerdWallet Rating
Min. credit score
National / regional
Learn more
NBKC

NBKC: NMLS#409631

Learn more
at NBKC
at NBKC
Refinancing
Best for rate transparency

620

National

Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0
/5
Refinancing
Best for variety of refi types

620

National

Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

Learn more
at Rocket Mortgage, LLC
at Rocket Mortgage, LLC
5.0
/5
Refinancing
Best for variety of refi types

620

National

Learn more
at Rocket Mortgage, LLC
at Rocket Mortgage, LLC
Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
5.0
/5
Refinancing
Best for digital convenience

620

National

Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
San Diego County Credit Union

San Diego County Credit Union: NMLS#580585

Read review
5.0
/5
Refinancing
Best for California borrowers

620

Regional

A Beginner’s Guide to VA Refinancing
Holden Lewis
By
Last updated on February 5, 2023
Edited by
✅ Fact checked
Dawnielle Robinson-Walker
Edited by
✅ Fact checked

What is a VA refinance loan?

A VA loan is a mortgage that requires no down payment, no mortgage insurance and is available to active-duty military, veterans, certain military spouses, reservists and National Guard members. The VA loan program, backed by the U.S. Department of Veterans Affairs, aims to help service members and veterans enjoy the benefits of homeownership.

Borrowers with an existing mortgage can refinance to a new VA loan, which comes with a new rate and a new set of terms. You may decide to refinance to get a lower interest rate, to change the amount of years you have to pay the loan back or to take out more money.

Eligible borrowers can also refinance to convert a conventional loan to a VA loan. VA mortgage rates are typically lower than mortgage rates for conventional or FHA loans.

Types of VA refinances

VA streamline refinance

VA Interest Rate Reduction Refinance Loans (IRRRLs) are also known as VA streamline refinance loans because the lending approval process is simplified, saving time, paperwork and fees.

To refinance into an IRRRL, you must already have a VA mortgage. The interest rate must be lower on your new loan, unless you're refinancing out of a VA loan with an adjustable rate.

VA IRRRLs don't let you extract cash from refinancing.

VA cash-out refinance

With a VA cash-out refinance, you can replace your current mortgage with a new VA loan and take out additional cash.

For example, if you have $200,000 remaining on your mortgage and need an additional $30,000 for a home renovation, you could refinance to a $230,000 mortgage, pocketing the difference. The main advantage of a VA cash-out refinance is that you are financing multiple expenses with one loan, rather than taking out a second mortgage or personal loan. Like with an IRRRL, your rate and terms will change.

Your original loan doesn’t need to be a VA loan to refinance into a VA cash-out refinance. Other loan types (such as conventional, FHA or USDA) can also be refinanced, as long as you qualify for a VA loan.

Who qualifies for a VA refinance?

If you have a mortgage and are eligible for a VA loan, you can apply for VA loan refinancing. These requirements vary depending on your service.

  • Active-duty homeowners: must have served at least 24 continuous months or 90 days of active service.

  • Veteran homeowners: must have served at least 90-181 continuous days, depending on when you served.

  • Members of the Selected Reserve or National Guard: must have served 90 days of active-duty service or six creditable years.

  • Surviving spouses of veterans: cannot have remarried before age 57 or Dec. 16, 2003. 

Those who did not meet length-of-service requirements due to a service-related disability may also be eligible, as are surviving spouses of service members who are missing in action or prisoners of war.

How do I find the current VA refinance rates?

NerdWallet's mortgage rate tool can help you find competitive, customized VA refinance rates. In the filters above, enter a few details about your current VA loan. In moments, you'll get a rate quote tailored to meet your needs, without having to provide any personal information. From there, you can start the process of getting approved for a VA refinance with a lender. It's that easy.

What is a good VA refinance rate?

A good VA refinance rate is one with the lowest combination of rate and fees. VA refinance rates fluctuate, so a rate that's good one day may be mediocre on another. The only way to find the lowest VA refinance rate is to compare rate quotes from multiple lenders. Maintaining a good credit score and applying to multiple lenders to compare quotes will help you get the lowest VA refinance rate.

Do VA loans have better refinance rates?

VA loans generally have lower mortgage rates than conventional and FHA loans. Your rate will depend on the lender and your personal financial details, such as your credit score.

What determines VA refinance rates?

Your rate is determined by several factors, including your credit score, amount of existing debt, the type of refinance you’re applying for and current market conditions.

Average mortgage rates fluctuate daily and are influenced by the economy's overall rate of growth, the inflation rate and the health of the job market. Unpredictable events can affect all of those factors. See NerdWallet's monthly mortgage interest rates forecast to get our take.

How much does a VA refinance cost?

Your VA refinance rate will affect the overall cost of borrowing. The lower the rate, the lower your monthly mortgage payment will be.

Other costs include a VA funding fee. As of April 7, 2023, the fee for an IRRRL is 0.5% of the loan value, and for cash-out refinances the fee varies from 2.15% to 3.3%. (The fee is waived for some veterans with service-connected disabilities, certain surviving spouses and active-duty service members who received a Purple Heart.)

You'll also be responsible for other closing costs, such as appraisals and inspections.

Pros and cons of a VA refinance

Pros

Refinance for up to 100% of the value: Qualified VA borrowers may refinance for up to 100% of the home's value, including the funding fee, if it's rolled into the loan amount.

No mortgage insurance: Even refinancing at 100%, VA borrowers don't pay mortgage insurance. Instead, they pay a funding fee.

Lenient loan qualifying standards: The VA has no minimum credit score requirement, although lenders often require credit scores of 620 or higher. When assessing affordability, the VA looks at how much money is left over after the borrower's monthly expenses.

Con

Funding fee: Although VA loans don't have mortgage insurance, they do have a funding fee that's paid at closing. The funding fee varies from 2.15% to 3.3% of the loan amount for cash-out refinances, and 0.5% of the loan amount for IRRRLs.

Learn more about VA loans:

Frequently asked questions

  • Is it a good idea to refinance a VA loan?

    To refinance using the IRRRL (VA streamline refinance) program, the new loan must have a lower interest rate or lower monthly payment. The exception is when you refinance from an adjustable-rate mortgage into a fixed-rate loan. Either way, the VA assumes that the refinance is a good idea because you're getting a lower rate or the predictability of a fixed rate.

    A VA cash-out refinance requires you to pass the Net Tangible Benefit test. To pass the NTB test, the refinanced loan has to save you money or switch from an ARM to a fixed rate.

  • When you do a VA refinance, there's a minimum period that must elapse between loan closings. At least 210 days must pass between the first payment of the original loan and the closing date of the new loan, and you must have made at least six monthly payments on the original loan. However, lenders can set their own additional standards.

  • While your mortgage’s interest rate is the percentage that the lender charges for borrowing the money, the APR, or annual percentage rate, is supposed to reflect a more accurate cost of borrowing. The APR calculation includes fees and discount points, along with the interest rate. For this reason, the APR is generally higher than the interest rate.

  • Applying with multiple lenders will allow you to get a sense of your options. With a Loan Estimate from each lender compared side-by-side, you'll be able to see which lender is giving you a good mortgage rate combined with the lowest origination fees.


About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.

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