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You can refinance a VA loan to take advantage of lower interest rates or get better terms. Our VA refinance calculator can help you estimate how much you might save by refinancing. Talk to us about streamline refinancing your VA loan by visiting our VA IRRRL Get Started page or calling 844-267-6544.

How much can I save?

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VA Refinance Calculator

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Keep in mind that a Refinance Calculator provides an estimate of how much you can save with a refinance. For example, the calculator does not display whether or not you will save money over the life of your loan. Also, the calculator does not take into account other aspects of your financial situation, such as the benefits of refinancing to get cash out to consolidate high-interest credit card debt.

To get a personalized refinance review, contact one of our home loan advisors who can answer your questions and provide you financing options.

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How much can you save with a VA home loan refinance?

To see how much you may be able to save with a VA refinance, simply enter your information in the fields. The information below describes how the VA refinance calculator works.

  • Current Home Loan

    The current loan section looks at your existing VA loan to better estimate how much you might save by refinancing. The VA refinance calculator needs to know your original loan amount, loan term (which is the number of years you have to pay back the loan), how many years you have already been paying, and interest rate. It will also ask if there is a balloon payment. When you are finished with these inputs, move onto the "New Loan" section.

  • New VA Home Loan

    In this section, you will input details about the new mortgage you are looking to get. The new term and new interest rate will affect how much your new VA loan might cost. Note that the term of a new mortgage will have an impact on how much you pay each month and how much you pay in interest over the life of the loan. Here you can input different values in the VA mortgage refinance calculator for the term and interest to see how the numbers change.

    There are also default amounts for closing costs like origination charges, discount points, and other services. You can adjust these values based on your own loan. When you refinance a VA loan, you pay off your current mortgage and replace it with a new one that may include closing costs. VA loans require a borrower-paid funding fee, which will vary and may be financed into the loan amount. Some borrowers are exempt from the funding fee.

  • Home Info

    When calculating a VA mortgage refinance, the current appraised value of your home (also called its "fair market value") can help you determine if it’s the right time to refinance. An appraiser will look at recent sales of comparable homes as well as how much it would cost to replace your home to come up with an appraised value. When considering if a VA streamline refinance is worth it, you should also consider the number of years you expect to live in your home. The longer you stay in your home, the more potential interest savings you might realize. Once you enter this information, the last section to complete is "Taxes & Insurance."

  • Taxes & Insurance

    The final step in the VA loan refinance calculator is to enter how much you pay in property taxes and homeowners insurance each year. The values are already defaulted but can be adjusted based on your tax and savings rate. These costs typically are escrowed and included in a homeowner’s monthly mortgage bill, so this information will help estimate the total payment amount you can expect.

    This VA refinance calculator can help you decide when it might make sense to refinance your VA loan. For more information on calculator terms, see the “VA refinance calculator terms” section below. You can call Freedom Mortgage today 877-220-5533 to see if you can save by refinancing.

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When should you refinance a VA mortgage?

People often refinance their VA loans to reduce their monthly mortgage payments or save money on interest. When interest rates are falling, it can be a good time to check whether you can save enough to make refinancing worthwhile. By refinancing, the total finance charges you pay may be higher over the life of the loan.

People with an existing VA loan may be able to refinance using the streamlined process (which is also called an "IRRRL" or "Interest Rate Reduction Refinance Loan"). VA streamlines let people who qualify refinance with minimal paperwork and fewer documentation requirements. You may be able to roll closing costs into the new loan amount, which can reduce the amount of funds you need to bring to closing.

If you’re eligible, a VA cash out refinance allows you to refinance your home for more than you owe and take out the difference in cash.

VA refinance calculator terms

In the VA refinance calculator, you will notice some terms you may not be familiar with. The information below may help you better understand the results of your calculations.

Amortization

Amortization is the process of paying back the VA loan through regular equal installments of principal and interest throughout the term of your loan. It represents the gradual reduction of the principal balance of the loan over time. You can see estimated schedules by clicking “Amortization” on the slider then selecting the "SEE TABLE" buttons.

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Balloon year

The balloon year represents how long you have before a balloon payment if you have that type of VA loan. These are often short-term loans where payments may be lower before the balloon payment is due. Then there is a larger than usual one-time payment at the end of the loan term.

Break-even point

The break-even point is a calculation that shows where the savings from a VA refinance are equal to the closing costs. Our VA mortgage refinance calculator estimates how much time it might take you to break even based on the numbers you input. The image below shows where you can find information on the estimated break-even point.

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Discount points

Discount points in the VA refinance calculator are fees paid to the VA lender upfront in exchange for a lower interest rate. One point equals 1% of your loan amount. If you plan to stay longer in your home, points can help you save on interest over the life of the loan.

Interest rate

The interest rate on a VA home loan is how much it costs to borrow money, expressed as a percentage. The interest rate VA lenders might offer are influenced by things like your credit score, finances, and loan amount.

Origination charges

Lenders and brokers may charge fees to process a loan. These are frequently called “origination charges” and can be one of your closing costs.

Other settlement services

Other settlement services in the VA loan refinance calculator include any service connected with a real estate settlement. This could include a title search and title insurance, appraisal, credit report, and other services that are needed to refinance your home. Most of these service charges can be included in the closing costs of your VA refinance.

Payments

Monthly mortgage bills usually include principal and interest payments as well as payments for your property taxes and homeowners insurance. The VA home loan refinance calculator estimates your current and new monthly payments. Click the “plus box” to see estimates of the total interest you might pay too.

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Term (years)

The loan term is the number of years you have to pay back the money you borrow. A "30 year mortgage" means you have 30 years to pay off the loan. The term of a mortgage will affect your monthly payments and how much you pay in interest over the life of the loan.

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Contact Us

Get started today by getting a personalized evaluation of your home loan options from Freedom Mortgage.

877-220-5533