VA Loan Refinance Calculator
Use this VA refinance calculator to estimate your potential monthly savings, interest payment and break-even point.
Estimate your monthly savings
Results
It is estimated that you could and in interest over the life of the loan.
Estimated Monthly Payment
(Payments do not include taxes and insurance.)
Estimated Interest Over Time
VA Home Loan Refinance Totals:
- Refinance Loan Amount
- Cashout Amount
- VA Funding Fee
- Estimated Closing Costs
- Total Loan Amount
- Refinancing Costs
- Refinancing Savings
At this point, you will have paid off your original loan and all additional payments to your new loan will decrease your total savings.
Yearly Savings Breakdown
| Monthly Payment Savings | Interest Payment Savings | Total Savings | |
|---|---|---|---|
| Year 1 | -$1,000 | -$1,000 | -$1,000 |
| Year 2 | -$1,000 | -$1,000 | -$1,000 |
| Year 3 | $1,000 | $1,000 | $1,000 |
| Year 4 | $1,000 | $1,000 | $1,000 |
| Year 5 | $1,000 | $1,000 | $1,000 |
| Year 6 | $1,000 | $1,000 | $1,000 |
| Year 7 | $1,000 | $1,000 | $1,000 |
| Year 8 | $1,000 | $1,000 | $1,000 |
| Year 9 | $1,000 | $1,000 | $1,000 |
| Year 10 | $1,000 | $1,000 | $1,000 |
| Year 11 | $1,000 | $1,000 | $1,000 |
| Year 12 | $1,000 | $1,000 | $1,000 |
| Year 13 | $1,000 | $1,000 | $1,000 |
| Year 14 | $1,000 | $1,000 | $1,000 |
| Year 15 | $1,000 | $1,000 | $1,000 |
How to Use the VA Refinance Calculator
Refinancing your mortgage is a big decision. Veterans United’s VA refinance calculator gives you a quick way to compare your current loan with potential VA refinance options, so you can move forward with confidence.
Adjust the inputs to match your current loan and refinance goals. Your estimated monthly savings, interest payment and break-even point automatically update as you change the fields.
Your monthly savings is the difference between your current payment and your estimated new payment. From there, you can see whether refinancing increases or decreases your total interest paid over the life of the loan. The estimated interest over time chart shows how your cumulative savings build against your refinancing costs and where your break-even point falls, the moment your savings outweigh what you spent to refinance.
Once you’ve entered your information, review the results to see a visual breakdown of your costs and savings over time. You can also view a yearly savings breakdown for a more in-depth look.
A Closer Look at the Inputs
| Input | Explanation |
|---|---|
| Original loan amount | The total amount you originally borrowed on your current loan, not your remaining balance. Find this on your closing disclosure or original loan documents. |
| Current loan type | The type of mortgage you currently have. Refinancing a non-VA loan into a VA loan requires full underwriting and appraisal, while an existing VA-to-VA refinance may qualify for a streamlined process with fewer requirements. |
| Current loan term | The full length of your original loan (typically 15 or 30 years). |
| Current loan origination year | The year your current loan closed. Combined with your loan term, this helps the calculator determine how far into repayment you are. |
| Current loan interest rate | The rate on your existing mortgage. Use the specific interest rate, not the APR. |
| New refinance loan type | Choose between a VA IRRRL (Streamline) or VA Cash-Out refinance. The VA Funding Fee amount varies by refinance type, so make sure it aligns with your goal. |
| New refinance loan term | The term of your new loan. Choosing a shorter term than your current one can significantly reduce total interest paid, even at a similar rate. |
| New refinance interest rate | Enter the rate you've been quoted, or use current VA loan rates as a starting point. Even a small rate change meaningfully affects your results. |
| VA specifics | These fields relate to your VA Funding Fee, such as whether this is a first or subsequent VA loan use, or whether you're exempt due to a service-connected disability or being a surviving spouse. |
| Advanced settings (optional) | Adjust your current mortgage balance (your actual remaining principal balance) and closing costs to complete the refinance. If you're unsure, you can leave the default estimates in place. |
Reading Your Results
The calculator results focus on the full picture of your refinance, not just your monthly payment. The chart and table together help answer whether refinancing will save you money over time or cost you more in the long run.
Here’s a brief breakdown for each section:
The Chart: Estimated Interest Over Time
The chart shows your cumulative refinancing picture over time. In the early years, the green bars represent the upfront costs you work to recover (closing costs and any VA Funding Fee).
As your monthly savings accumulate and eventually outpace those costs, the bars shift to blue, representing your net savings. The blue dotted vertical line marks your break-even point, the year your savings outpace your costs.
Toward the right side of the chart, a red dotted line marks the "Original Loan Payoff." This is when your current loan would have been paid off had you not refinanced. Any payments on the new loan after this point will decrease your total savings.
The Table: Yearly Savings Breakdown
The table below the chart offers a year-by-year look at three figures: monthly payment savings, interest payment savings and a running total. At the start of the refinance, that total will be negative since you're still recovering your upfront costs. The year it turns positive is your break-even year.
The table is especially useful for comparing scenarios. If you're deciding between a 15-year and 30-year refinance, run each loan term and compare how quickly the running total climbs in each case.
Should I Refinance My VA Loan?
A VA refinance can help you lower your rate, reduce your monthly payment or access home equity. You can even refinance a conventional loan into a VA loan, along with other mortgage options. But it doesn’t always make sense for every homeowner.
In many cases, VA refinance loans must provide a “net tangible benefit,” meaning the new loan should offer a clear financial advantage. In simple terms, the VA won’t allow you to refinance your loan if it doesn’t improve your financial situation.
Here are some key questions to consider before refinancing your mortgage:
1. Are Current Interest Rates Lower Than Your Existing Rate?
Interest rates play a major role in how much you’ll pay each month and over the life of your loan.
If current VA loan rates are lower than your existing rate, refinancing may help reduce both your monthly VA mortgage payment and total interest paid over time. Even a small drop in your rate can lead to meaningful savings, especially on longer-term loans.
That said, the impact depends on more than just the rate. Your loan balance, remaining term and closing costs all factor into whether refinancing makes sense.
Homeowners should understand that refinancing may result in higher finance charges over the life of the loan.
Tip: Use the calculator to compare your current rate with a new estimated rate and see how the difference affects your monthly payment and long-term interest.
2. How Long Do You Plan to Stay in Your Home?
Refinancing comes with upfront costs, including closing costs and potentially a VA Funding Fee. Because of this, timing matters.
Your break-even, or recoupment, point is when the savings from your new loan outweigh the cost of refinancing. Even a lower monthly payment doesn’t guarantee savings if you don’t stay in the home long enough to break even.
- If you plan to stay in your home beyond the break-even point, refinancing may lead to long-term savings
- If you expect to move or refinance again sooner, you may not recover those upfront costs
Your timeline will vary based on your loan terms, interest rate and overall costs. However, it’s an important factor when deciding if a VA refinance makes sense.
Tip: This calculator also works like a VA recoupment calculator, helping you estimate how long it may take for refinancing to start working in your favor.
Want a more personalized estimate? A Veterans United VA loan expert can walk through your numbers and help you explore your options at 1-800-884-5560.
3. What’s the Term Length of the New Mortgage?
The new mortgage term affects both your monthly payments and the total amount of interest you'll pay over the life of the loan.
Choosing a shorter term, like a 15-year VA loan, typically means higher monthly payments, but less interest paid overall since the loan is paid off faster. A longer term, such as 30 years, can lower your monthly payment but increase the total interest paid over time.
In some cases, resetting to a new 30-year loan may reduce your monthly payment while extending how long you’re in debt. The right loan term depends on your financial priorities and whether you want to lower your monthly payment now or reduce the total cost of the loan over time.
Breaking Down VA Refinance Costs
Whether you are refinancing from a VA loan or another loan type, understanding the costs involved can help you make a more informed decision. These expenses can impact your monthly savings, break-even timeline and overall benefit of refinancing.
VA Funding Fee
Most VA refinance loans come with a VA Funding Fee, a cost charged by the Department of Veterans Affairs to help keep the program running for future Veterans and service members. The fee goes directly to the VA loan program, not the lender.
How much you’ll pay depends largely on the type of refinance and how you’re using your VA loan benefit:
- VA IRRRL (Streamline refinance): 0.5% of the loan amount
- VA Cash-Out (refinancing a non-VA loan into a VA loan): 2.15% of the loan amount for first-time use
- VA Cash-Out (refinancing an existing VA loan): 3.3% of the loan amount for subsequent use
Veterans receiving compensation for a service-connected disability, surviving spouses and select others are exempt from paying the VA Funding Fee.
Tip: Use our VA Funding Fee calculator to help you get an idea of where you stand.
Closing Costs
Like most mortgages, a VA refinance also comes with closing costs tied to setting up your new loan. Beyond the VA Funding Fee, these costs may include:
- Lender origination fees
- Discount points (if you choose to lower your rate)
- Title and recording fees
- An appraisal (typically only for VA Cash-Out refinances)
The exact refinance costs can vary depending on your loan details, lender and location, so be sure to discuss these costs upfront with your lender beforehand.
Some lenders advertise “no-closing-cost” refinances. In most cases, that doesn’t mean the costs disappear. They’re typically built into the loan through a higher interest rate or added to your loan balance.
VA Streamline (IRRRL) vs Cash-Out Refinance
The VA loan benefit offers two refinance options: a VA Streamline and a VA Cash-Out refinance. There are a few key differences to consider between the two, so let’s compare to see which option best fits your needs.
| VA Streamline (IRRRL) | Cash-Out Refinance |
|---|---|
Reasons to Streamline Refinance:
|
Reasons to Cash-Out:
|
What is the Current VA Refinance Rate?
Rates frequently change for a number of reasons. The good news for eligible Veterans and service members is that VA refinance rates are typically lower than other options.
VA Loan Rates
Interest rates used in the VA refinance calculator are shown for illustrative purposes only. Your rate may differ based on a variety of factors, including your credit score and the current market conditions. To get your personalized interest rate, check your eligibility online.
