Fact-checked by Peter Warden.
- Refinancing replaces an existing VA loan with a new mortgage loan.
- VA borrowers can refinance into a new VA loan or a different type of loan.
- The VA’s two refinance programs — the IRRRL and the Cash-Out Refinance — have different purposes.
- VA refinances come from private lenders authorized by the VA, so rates vary by lender.
- For homeowners with VA loans, staying within the VA program is often the best deal.
Yes, you can refinance a VA loan. VA loans may be refinanced into new VA loans — or into other types of mortgages, including conventional or FHA loans. Refinancing into a different loan type means giving up the unique benefits of your VA loan.
VA homeowners who want to keep those benefits have two choices: the VA IRRRL (Streamline Refinance) or the VA Cash-Out Refinance.
How Soon Can You Refinance a VA Loan?
The Department of Veterans Affairs requires a 210-day waiting period — known as a seasoning period — before starting a VA loan refinance application. The seasoning period begins on the date of the current loan’s first payment.
Meeting the seasoning requirement is just one piece of the puzzle. Applicants must also qualify for the refinance itself. Requirements differ between the VA’s two refinance options, and approval can vary by lender.
The VA’s seasoning period does not apply to VA borrowers who want to refinance into a different type of mortgage, such as a conventional loan. Since they’re leaving the VA loan program, those borrowers follow the new loan’s rules.
Your Two VA Refinance Options
Borrowers with VA loans can choose any type of refinance. Those who want to stay in the VA program have two options:
- The VA IRRRL (Streamline Refinance)
- The VA Cash-Out Refinance
The IRRRL provides a faster, simpler way for many VA loan holders to lower their interest rate or secure better terms. The Cash-Out Refinance allows borrowers to access their home equity as cash.
VA Interest Rate Reduction Refinance / Streamline Refinance (IRRRL)
The VA IRRRL (Interest Rate Reduction Refinance Loan) is a streamline refinance program that lets eligible borrowers skip the credit check, home appraisal, and other time-consuming steps in the refinancing process.
A common IRRRL scenario: A borrower closes a VA loan in January. By September of the same year, average mortgage rates have dropped a full point below their locked rate. Through the IRRRL, this borrower can refinance into current rates without full closing costs or a complete underwriting process. The new loan must provide the borrower a tangible benefit — such as a lower rate, lower payment, or a switch from an adjustable rate to a fixed rate.
The IRRRL only refinances existing VA loans and generally cannot generate cash back from equity, with two exceptions:
- An IRRRL can unlock enough equity to cover some closing costs, most commonly the VA Funding Fee.
- An IRRRL can include up to $6,000 for energy-efficient improvements to the home.
VA borrowers who need more cash from their home equity should use the VA Cash-Out Refinance.
VA Cash-Out Refinance
The VA Cash-Out Refinance lets borrowers access home equity as cash at closing, which can be used for any purpose — debt consolidation, home renovation, a down payment on another property, or anything else.
As a full refinance, it requires complete underwriting and a new home appraisal. Compared to most other cash-out options, the VA program offers access to more equity. Some VA-authorized lenders approve loan sizes that match or exceed the home’s current value — while not every borrower qualifies for 100% loan-to-value (LTV), the VA doesn’t prohibit it.
For example: the owner of a $300,000 home who owes $200,000 could potentially borrow the full $300,000 — paying off the existing balance and walking away with $100,000 at closing. A conventional lender would typically cap the loan at $240,000–$250,000, leaving only $40,000–$50,000 in cash back.
As with any cash-out refi, the cash must be repaid through monthly mortgage payments — it’s not the same as taking money from savings. The VA Cash-Out can replace any type of existing mortgage, not just a VA loan.
Reasons to Refinance a Mortgage
To justify its cost, a refinance should improve your loan in some meaningful way — typically by saving money immediately, over time, or both.
Lower Interest Rates
Shaving even a fraction of a percentage point off your rate can save thousands of dollars over the life of the loan, especially when your current mortgage is relatively new.
| $300,000 loan (30-year fixed) | Monthly payment* | Total interest paid over 30-year term^ |
| At 6.5% APR | $1,896 | $382,633 |
| At 6.0% APR | $1,799 | $347,515 |
| At 5.5% APR | $1,703 | $313,212 |
^Interest can be lower if the borrower makes extra payments or higher with missed payments.
All figures are for example purposes only and may not be available.
Here’s a quick look at how VA refinance interest rates have been trending:
How we source rates and rate trends
Rates based on market averages as of Jun 11, 2026.Product Rate APR 15-year Fixed Va Refinance 5.66% 5.89% 30-year Fixed Va Refinance 6.07% 6.22% 30-year Fixed Va Jumbo Refinance 6.13% 6.27%
A word of caution: Before jumping at a lower rate, check how much interest you still owe on your current loan. The longer you’ve had your mortgage, the less you benefit from refinancing — because the bulk of your early payments went toward interest, and you’ve already paid much of it. The older the loan, the smaller the potential savings from refinancing.
Which VA refinance can lower interest rates: IRRRL and Cash-Out Refinance
Shorter (or Longer) Loan Terms
Longer loan terms mean lower monthly payments but significantly more interest paid over time. Shorter terms flip that equation. Here’s how the numbers compare:
| $300,000 mortgage at 6% | Monthly payment* | Total interest paid^ |
| 10-year term | $3,331 | $99,674 |
| 15-year term | $2,532 | $155,683 |
| 30-year term | $1,799 | $347,515 |
^Interest can be lower if the borrower makes extra payments or higher with missed payments.
All figures are for example purposes only and may not be available.
Refinancing from a 30-year loan to a 15-, 12-, or 10-year loan can save hundreds of thousands of dollars — if the higher monthly payment fits your budget. Conversely, someone struggling with a 15-year payment could get immediate relief by refinancing to a longer term, and can always make extra principal payments later to reduce total interest paid.
Which VA refinance can change loan terms: IRRRL and Cash-Out Refinance
Other Reasons to Refinance
Beyond rate and term, other common reasons to refinance include:
- To get a fixed rate: Borrowers with adjustable-rate mortgages or temporary financing often refinance to lock in a stable fixed rate.
- To eliminate mortgage insurance: FHA and USDA mortgages typically require mortgage insurance premiums for the life of the loan. Refinancing into a VA loan eliminates these monthly costs entirely, since VA loans don’t require mortgage insurance.
- To get cash out: Cash-out refinancing lets you borrow against equity at much lower rates than personal loans or credit cards. Alternatively, you can add a HELOC or home equity loan as a second mortgage while keeping your current VA loan in place.
Which VA refinance can accomplish these goals: VA borrowers can use the IRRRL to lock in a fixed rate. Any borrower who qualifies for the VA program can use the Cash-Out Refinance to eliminate mortgage insurance or access equity.
Can You Refinance a VA Loan to a Conventional Loan?
Yes — but the better question for most VA borrowers is: should you? VA loans maximize homebuying power for eligible Veterans, service members, and surviving military spouses. Leaving the program means giving up significant benefits.
Reasons to Refinance to a Conventional Loan
There are a limited number of situations where exiting the VA program makes sense:
- To convert the home to a rental property: VA loans are for primary residences only. A Veteran who wants to turn their home into a rental may need to refinance into a conventional loan — freeing up their VA entitlement to use on a new primary residence.
- To transfer the home after a divorce: A non-Veteran ex-spouse who’s keeping the home can’t maintain the benefits of the VA loan. They’ll need to refinance into a conventional or FHA loan to keep the property.
Reasons Not to Refinance to a Conventional Loan
In most cases, VA borrowers are better off staying within the VA program. Common situations where leaving doesn’t make sense:
- Recent borrowers with little equity: Conventional loans require private mortgage insurance (PMI) for borrowers with less than 20% equity. If you made no down payment on your VA loan and haven’t built much equity yet, you’d likely be adding a PMI payment that could cost several hundred dollars a month.
- Borrowers with credit challenges: VA backing insulates borrowers from the full impact of lower credit scores. Refinancing to conventional removes that protection — meaning lower scores could result in higher rates or disqualification.
- Borrowers who simply want a lower rate: If your only goal is to reduce your rate or adjust your loan term, the VA IRRRL is purpose-built for exactly this — and it’s faster and cheaper than most alternatives.
Most VA homeowners should refinance within the VA program unless they have a compelling reason to leave it.
Do You Have to Use the Same Lender?
No, you can refinance with any VA-authorized lender, not just the one you used to buy the home. Your original lender might offer the best deal, but it might not. Shopping around with at least two or three other lenders is always worth the time.
Costs vary significantly because the VA doesn’t lend money directly — it insures lenders so they can offer favorable terms to Veterans. Lenders have leeway within those guidelines, meaning rates and fees can differ meaningfully from one company to the next. As the tables above show, even a quarter- or half-percentage-point difference can translate into thousands of dollars in savings over the life of the loan.
How to Refinance Your VA Loan
1. Decide Which Type of Refinance You Need
Your answer depends on your goals:
- If current rates are lower than when you bought: A VA Streamline Refinance (IRRRL) is likely your best fit.
- If you need to access home equity as cash: Consider the VA Cash-Out Refinance. Or, keep your current VA loan and add a HELOC or home equity loan instead.
- If you need to exit the VA program due to a divorce or rental conversion: A conventional refinance is the path forward. FHA may also be an option if the borrower plans to live in the home.
Not sure which fits your situation? Talk to a lender — they can help you navigate your specific circumstances.
2. Compare Rates With at Least Three Lenders
Once you know which refinance you need — or even while you’re still deciding — start comparing rates. You can get multiple quotes in one sitting online. If staying within the VA program, focus on lenders who specialize in VA loans. Don’t overlook local credit unions, but make sure they’re VA-authorized first.
3. Submit Your Application
When you’re ready to move forward, you’ll need pay stubs, tax forms, bank statements, a government-issued ID, and a recent mortgage statement showing your current balance. Having your escrow balance, annual property tax amount, and homeowners’ insurance details on hand will also help speed things along.
4. Follow Your Loan Officer’s Guidance
Your lender will assign a loan officer to guide you through the process from application to closing. Your main job is to respond to document requests as quickly as possible to keep the process moving.
Ready to Get Started?
Whether you’re looking to lower your rate, access your equity, or adjust your loan terms, Refi.com can help you explore your VA refinance options. Start your VA refinance application today.
