1. What is VA Loan Refinancing?

VA loan refinancing through Veterans United allows eligible borrowers to replace their current VA loan with a new one, typically to secure a lower interest rate or change loan terms. The VA Interest Rate Reduction Refinance Loan (IRRRL) is a streamlined option with reduced paperwork.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of monthly payments (years × 12)
• \( PMT \) — Monthly payment amount (USD)

For IRRRL: Adds 0.5% VA funding fee amortized over the loan term.

3. Understanding IRRRL

Details: The Interest Rate Reduction Refinance Loan (IRRRL) is a VA-to-VA refinance that typically doesn't require credit underwriting or appraisal. It has a 0.5% funding fee that can be rolled into the loan.

4. Using the Calculator

Tips: Enter loan amount in USD, interest rate as annual percentage (5.5-6.5% typical for VA loans), loan term in years (15-30 common), and indicate if using IRRRL.

5. Frequently Asked Questions (FAQ)

Q1: What are current VA loan rates?
A: As of 2024, rates typically range 5.5-6.5% but vary daily based on market conditions and borrower qualifications.

Q2: Is the VA funding fee required?
A: Yes, all VA loans have a funding fee (0.5% for IRRRL, higher for other refinances). Disabled veterans may be exempt.

Q3: What's the benefit of refinancing?
A: Lower monthly payments, reduced interest costs, or switching from adjustable to fixed rate.

Q4: Are there closing costs?
A: Yes, though IRRRL allows rolling costs into the loan. Typical costs are 1-3% of loan amount.

Q5: How soon can I refinance a VA loan?
A: For IRRRL, you must have made at least 6 payments on your current VA loan.