VA Rate-and-Term Refinance
Best For: Rate Reduction, Lowest Rates
Refinance to a lower VA mortgage rate or change your term (length) with limited closing costs and no private mortgage insurance.
Program Description
The VA Rate-and-Term Refinance Program allows active-duty, retired military, national guard, reservists, and eligible surviving spouse to finance up to 100% of the appraised value of their existing home. The many benefits of the VA program include 100% financing, competitive interest rates, limited fees at closing, and no private mortgage insurance (PMI).
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VA Rate-and-Term Refinance
Min. Credit Score
580
Min. Equity
0%
Max Loan Amount
$806,500
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- 100% financing options available
- Typically offers lower interest rates than other mortgage programs
- No private mortgage insurance (PMI)
- No income limits
- A funding fee which ranges between 1.40% - 3.60% of the loan amount (some exceptions apply)
- Unlike a streamline VA refinance (See IRRRL), a new appraisal is generally required
Program Availability
VA Rate-and-Term Refinances are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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“If you are seeing VA loan rates lower than your existing mortgage or you are considering moving to a 15-year mortgage, this program is worth exploring."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
60.00%
Purchase Price Limit
No Limits
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- You can refinance up to 100% of the value of your existing home
- Unlike most other programs, the VA Loan does not have mortgage insurance
Additional Conditions
- Must be eligible for VA home loan benefits. Subsequent use of benefits may result in a higher funding fee.
- Also known as the VA Type 1 Cash-Out Refinance (a refinance in which the loan amount does not exceed the payoff amount of the loan being refinanced).
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is not required for this loan program.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: VA Funding Fee
The VA Funding Fee, which ranges between 1.25% - 3.3% of the loan amount, is charged on all VA loans unless the veteran has been entitled 10% or greater in disability.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
VA Cash-Out Refinance
Best For: Rate Reduction, Lowest Rates
The VA offers a flexible cash-out refinancing program that goes up to 100% of the appraised value of the home for veterans and active-duty military.
VA Purchase Loan
Best For: Lowest Rates, Zero Down
VA purchase loan program with no down payment requirement, competitive interest rates, limited closing costs, and no private mortgage insurance.
Related Resources
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A Rundown On Closing Costs and How They Affect You
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Veterans Administration Mortgage Loans in 2025: A Comprehensive Guide
The Veterans Administration (VA) mortgage loan remains one of the most valuable benefits provided to those who serve. Since its inception, the VA home loan program has helped millions of veterans achieve homeownership. With VA loans offering attractive benefits such as no down payment and competitive interest rates, 2025 is an excellent time for veterans to leverage this powerful tool to secure their dream home.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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