Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
What's on this page
Applied Filters: Good (720-739), 30-year fixed, Single family home, Primary residence, VA loans.
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.
Has a program to enable buyers to make cash offers.
Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
Cons
Mortgage origination fees tend to be on the high end.
Personalized mortgage rates are not available on the website without providing contact information.
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.
Trends and Insights
Mortgage rate trends (APR)
NerdWallet’s mortgage rate insight
7.432%
30-year fixed-rate
“
On Friday, April 26, 2024, the average APR on a 30-year fixed-rate mortgage rose 6 basis points to 7.432%. The average APR on a 15-year fixed-rate mortgage rose 12 basis points to 6.694% and the average APR for a 5-year adjustable-rate mortgage (ARM) rose 11 basis points to 8.178%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 12 basis points higher than one week ago and 99 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.
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.
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.
How soon can you refinance a VA loan?
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.
What is APR?
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.
Which lenders offer competitive VA refinance rates?
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.
