Lower the payment, use equity, or replace a non-VA mortgage
VA Refinance Options
A VA refinance can lower the mortgage payment, move an adjustable rate into a fixed rate, use eligible home equity, or replace a non-VA mortgage. Tell us what you want to change, and we will compare the refinance options that can make it happen.
For an existing VA loan, we may use a VA Interest Rate Reduction Refinance Loan (IRRRL), often called a streamline refinance. When you need equity or want to replace a conventional, FHA, or USDA mortgage, we review a VA cash-out refinance. We show the new payment, available cash, and monthly difference before you decide.
Speak with a VA loan specialist about your loan options.
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What are the two main VA refinance options?
The mortgage you have now and whether you need cash from the equity usually decide which option we compare first. An IRRRL can refinance only an existing VA-backed loan, so it is not an option for conventional, FHA, or USDA mortgages. A VA cash-out refinance can replace a VA, conventional, FHA, or USDA mortgage. It can also provide cash when enough eligible equity remains after the current payoff, other liens, closing costs, and the maximum loan-to-value we can offer.
VA IRRRL streamline
If you already have a VA loan, an IRRRL can help lower your interest rate or monthly payment, or move you from an adjustable to a fixed rate. It is not designed to take cash out of your home, though.
VA cash-out refinance
VA cash-out refinancing lets you use eligible home equity to consolidate debt, make repairs, or cover another major expense. It can also replace a conventional, FHA, or USDA mortgage with a VA loan.
Can you get cash out with a VA IRRRL?
A VA IRRRL cannot return your home equity to you as cash. Allowable refinancing costs can be included in the new balance. VA rules also permit limited incidental adjustments or qualifying energy-efficiency improvements. An IRRRL cannot be used to pay off other debt, make ordinary repairs, pay tuition, or cover personal expenses.
When you need cash from the equity, a VA cash-out refinance may be the better choice. The comparison includes the appraisal, current payoff, other liens, closing costs, and funding fee to calculate the cash available at closing.
Start with what you want the mortgage to accomplish
Would an IRRRL or cash-out refinance fit the goal?
An existing VA loan points first to an IRRRL, while a need for cash or a non-VA payoff points toward cash-out. We can compare the choices using the current loan, equity, costs, and payment goal.
When does a VA IRRRL fit?
An IRRRL can make sense when you already have a VA loan and the new mortgage lowers the fixed rate or principal-and-interest payment, or moves an adjustable rate into a fixed rate. You must certify that you live in or previously lived in the home, and any second-lien holder must agree to stay behind the new VA loan.
Federal rules generally require the fees and costs included in the IRRRL recoupment test to be recovered through the lower regular monthly payment within 36 months. The break-even period is calculated before the new balance, remaining term, discount points, lender credits, and total interest are compared. A refinance can pass the 36-month test and still be a poor fit for how long you plan to keep the loan.
When does a VA cash-out refinance fit?
A VA cash-out refinance can make sense when you need cash from the equity or want to replace a conventional, FHA, or USDA mortgage with VA financing. We pull your Certificate of Eligibility (COE), confirm that the home is your primary residence, and review the income, credit, monthly debts, assets, title, liens, and appraised value.
Some of our cash-out options can consider a loan up to 100% of the appraised value, but that figure is not a promise of cash or approval. The appraisal is only the starting point because the current payoff, other liens, closing costs, funding fee, available entitlement, residual income, and maximum loan-to-value all reduce or control the amount that can be approved.
What is a VA rate-and-term refinance?
A rate-and-term refinance changes the interest rate, loan term, or both without returning home equity as cash. When the current mortgage is already VA-backed, we normally review the streamlined IRRRL first. A conventional, FHA, USDA, or other non-VA mortgage generally has to follow the VA cash-out rules even when you do not receive cash.
The new principal-and-interest payment is only one part of a refinance. Taxes, insurance, mortgage insurance being removed, the funding fee, closing costs, new balance, remaining term, and expected time in the home complete the comparison. Those figures show whether the lower payment repays the cost and supports the payoff goal.
What does the 1% refinance rule mean for a VA loan?
The 1% refinance rule is common general advice, not the VA requirement. It simply says a refinance may be worth considering when the new rate is about 1% lower. That shortcut does not account for closing costs, the new loan balance, the remaining term, or how long you expect to keep the mortgage.
For a VA IRRRL that moves from one fixed rate to another, the new rate generally must be at least 0.5% lower. Moving from a fixed rate to an adjustable rate generally requires the initial rate to be at least 2% lower. An adjustable-rate loan moving to a fixed rate is treated differently because the stable payment can provide the required benefit.
We apply the VA rules for the exact transaction, calculate how long it takes to recover the covered costs, and show you the payment, fees, points, balance, and remaining term before you decide.
How do VA refinance rates, points, and break-even compare?
There is no single VA refinance rate that applies to every homeowner, and pricing can change during the day with the market. The refinance type, credit, loan-to-value ratio, term, loan size, property, discount points, lender credits, and lock period then move the quote from that starting point. We compare written Loan Estimates using the same loan amount and term so an advertised rate with points is not mistaken for a better offer.
Rate and APR
The interest rate drives the principal-and-interest payment, while the APR reflects certain loan costs over the term. We compare both on the same loan amount and term because neither number tells the full story by itself.
Points and lender credits
Discount points lower the rate by increasing the upfront cost, while lender credits reduce the cash due by accepting a higher rate. The break-even period shows how long the monthly difference takes to recover.
Break-even period
We divide the costs included in the comparison by the verified monthly savings, then compare that break-even period with how long you expect to keep the home and loan.
New balance and term
Adding costs to the balance or restarting a longer term can lower the monthly payment while increasing total interest or delaying the payoff date, so we show those changes beside the monthly savings.
Put the complete refinance in writing
How would the payment, balance, and closing costs change?
A side-by-side comparison separates the lower-payment option from the refinance that can use eligible equity. We can show the payment, balance, costs, and projected proceeds in writing.
What credit score is needed for a VA refinance?
The VA does not set one minimum credit score for every refinance, while each lender and program sets its own requirements. Some PBT cash-out programs can consider scores as low as 500, and our VA IRRRL has a No Minimum Credit Score option.
No Minimum Credit Score does not mean automatic approval. The existing mortgage, payment history, refinance type, proposed terms, and applicable VA rules still have to fit the selected option.
Does a VA refinance require an appraisal or income documents?
An IRRRL normally uses a streamlined review, while a VA cash-out refinance requires a VA appraisal and a complete review of your finances. We tell you which income, asset, credit, payment-history, title, insurance, and property documents apply before asking you to provide them.
Documents needed for an IRRRL
PBT has an IRRRL option with no VA appraisal, income verification, or asset verification. We still confirm the mortgage history, seasoning, occupancy certification, required benefit, cost recovery, title, and any second lien.
Documents needed for VA cash-out
A VA cash-out refinance includes a VA appraisal and a complete review of credit, employment, income, assets, and monthly debts. Residual income, primary-residence occupancy, entitlement, title, liens, and the property must also meet the loan requirements.
How long does a VA refinance take?
Once the application and required documents are complete, a VA refinance can often close in two to three weeks, depending on the loan type and whether an appraisal is needed. Title work, insurance, underwriting conditions, appraisal timing, and the speed of any remaining documents can move the date in either direction.
An IRRRL usually needs fewer documents than cash-out, but the existing loan still has to meet the federal seasoning test. The new note date generally must be at least 210 days after the first payment due date. At least six consecutive monthly payments must also have been made. We may apply a stricter payment-history or seasoning requirement.
Why use PBT Bancorp for a VA refinance?
PBT Bancorp is an FDIC member bank licensed in all 50 states, and we can compare VA refinance options from more than 35 wholesale lenders. We price the IRRRL and cash-out programs that match the goal, then show the written rate, payment, closing costs, new balance, remaining term, and break-even point before recommending that you refinance or wait.
Choose the VA refinance guide that matches your goal
Choose the guide that matches the mortgage you have now and the change you want the refinance to make.
VA IRRRL streamline
Learn how the rate-reduction, seasoning, payment-history, benefit, and 36-month cost-recovery rules apply when you already have a VA loan.
VA cash-out refinance
Available equity is what remains after the appraisal, current payoff, other liens, lender limit, closing costs, and funding fee.
VA refinance rates
See what changes a VA rate quote and how we compare the interest rate, APR, discount points, lender credits, term, and lock period.
VA funding fee chart
Check the current IRRRL and cash-out funding fee rates, see how the fee affects the new balance, and review the VA exemption categories.
VA refinance questions
Can I get cash back with a VA IRRRL?
You cannot use an IRRRL to borrow against your home equity for debt payoff, repairs, tuition, reserves, or personal expenses. Allowable refinancing costs and limited incidental adjustments may be handled under VA rules, but a VA cash-out refinance is the program we review when you need equity.
Can a VA cash-out refinance replace a conventional or FHA loan?
A VA cash-out refinance can replace a conventional, FHA, USDA, or other non-VA mortgage when the home is your primary residence. We pull your COE and review your income, credit, monthly debts, and available funds. The appraisal, entitlement, title, occupancy, and loan-to-value then determine whether the new loan works.
Does VA allow a 100% cash-out refinance?
Some PBT cash-out programs can consider a loan up to 100% of the appraised value, but that does not mean all of the equity is available as cash. The current payoff, other liens, closing costs, funding fee, entitlement, residual income, and program limit all affect the final amount.
What is the 1% rule for a VA refinance?
The 1% rule is general refinance advice that suggests looking at a refinance when the new rate is about 1% lower. VA IRRRL approval uses the program’s actual rate-reduction and cost-recovery requirements instead of that shortcut.
How much must an IRRRL lower the rate?
For a fixed-to-fixed VA IRRRL, the new rate generally must be at least 0.5% lower. A fixed-to-ARM IRRRL generally needs an initial rate at least 2% lower. An ARM-to-fixed IRRRL is treated differently because the stable payment can provide the required benefit.
How long must I wait before a VA refinance?
For a VA-to-VA refinance, the new note date generally must be at least 210 days after the first payment due date and at least six consecutive monthly payments must have been made. We may apply a stricter seasoning or payment-history rule, which we verify before recommending the refinance.
Does a VA refinance have a funding fee?
The standard IRRRL funding fee is 0.5%, while the standard cash-out fee is 2.15% for first use and 3.3% after first use. You do not pay the funding fee when your COE and VA records show an exemption, and we confirm that status before closing.
Do I need an appraisal for a VA refinance?
A VA cash-out refinance requires a VA appraisal, while PBT has an IRRRL option that does not require a new appraisal. If the mortgage does not qualify for that streamlined option, we explain any value check or additional documents needed before you proceed.
Can I refinance with a different VA lender?
You do not have to refinance with the company that collects your current payment. The VA encourages homeowners to compare lenders because the rates, discount points, fees, credits, and program requirements can vary on the same day.
How do I know whether a VA refinance saves money?
A useful refinance comparison puts the current mortgage beside the proposed payment and eligible monthly savings. The complete view also shows closing costs, the funding fee, points, credits, new balance, remaining term, and expected time in the home. For an IRRRL, the federal recoupment calculation generally must show the covered costs recovered within 36 months.
See what a VA refinance could improve for you
Start the online pre-qualification and tell us what you want to change. We will determine whether an IRRRL or cash-out refinance fits, then show the proposed payment, available cash when applicable, closing costs, and monthly difference.
Last reviewed July 30, 2026.