Plan Your VA Refinance with Our Calculator
Our calculator is user-friendly and helps you estimate savings and payments for a VA refinance. Follow these steps to get started:
- Enter your current monthly mortgage payment.
- Input the new refinance loan amount, including any cash-out.
- Select the refinance type (IRRRL or Cash-Out).
- Enter cash-out amount (set to $0 for IRRRL).
- Choose the loan term (15 or 30 years).
- Adjust the interest rate based on current market rates or your pre-approval.
- Choose your military status to determine VA Funding Fee eligibility.
- Indicate prior VA loan use (first or subsequent).
- Estimate annual property tax rate based on local rates.
- Enter annual homeowners insurance costs (consult an insurance agent for accuracy).
- Use advanced options for HOA fees, joint loans, or income/debt details for DTI calculations.
Factors Affecting Your VA Refinance Payments
Several elements influence your monthly payment and savings:
The loan amount is the total refinanced amount, including any cash-out. A higher loan or cash-out increases payments, while IRRRL typically keeps amounts close to the existing balance.
The VA Funding Fee (0.5% for IRRRL, 2.15%–3.3% for Cash-Out) is based on refinance type, prior use, and disability status. Exemptions for disabled veterans or surviving spouses save significant costs.
Lower rates reduce payments and interest. Shorter terms (15 years) increase monthly payments but lower total interest, while longer terms (30 years) reduce monthly payments but increase interest over time.
Local property taxes and homeowners insurance, paid monthly via escrow, vary by location and home value, impacting your total payment.
Lowering Your Debt-to-Income (DTI) Ratio
A DTI ratio below 41% is ideal for VA refinance approval. Strategies to lower it include:
- Reduce Debt: Pay off credit cards or loans to lower monthly obligations.
- Increase Income: Include side hustles or VA benefits to boost income.
- Lower Loan Amount: Reduce cash-out or refinance a smaller balance.
- Extend Loan Term: Choose a longer term to lower monthly payments.
- Secure Lower Rates: Shop for a lower interest rate to reduce payments.
Frequently Asked Questions About VA Refinance Calculator
A VA Refinance Calculator estimates savings and monthly payments for refinancing a VA or non-VA mortgage into a VA loan, factoring in interest rates, loan terms, VA Funding Fee, taxes, and insurance.
An IRRRL (Streamline) lowers your interest rate or changes terms on an existing VA loan without cash out. A Cash-Out refinance allows you to access home equity or refinance a non-VA loan into a VA loan, receiving cash.
The VA Funding Fee for refinancing is typically 0.5% for IRRRL and 2.15%–3.3% for Cash-Out, depending on prior use. It’s waived for veterans with service-connected disabilities or surviving spouses receiving DIC.
Refinancing can lower payments with a reduced interest rate or longer term, but cash-out or shorter terms may increase payments. Property taxes, insurance, and HOA fees also impact the total.
Lower your DTI by reducing debts, increasing income, choosing a lower loan amount, extending the loan term, or securing a lower interest rate.
Amortization Schedule
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