Veterans Direct Mortgage

Same Home, Better Terms · Everyone Welcome

Refinance Your Mortgage

A refinance replaces your current mortgage with a better one — lower rate, shorter term, or both. The math either works or it doesn't, and we'll show you the break-even honestly: what it costs, what it saves, and exactly how many months until you're ahead.

Lower Rate / Term

Goal

None

Cash Out

Break-Even Months

The Test

Often Possible

PMI Removal

When a refinance makes sense

The classic trigger is a rate meaningfully below your current one — but the real test is break-even: closing costs divided by monthly savings. Under 24–36 months with plans to stay put, the math usually works. We run it in writing before you commit to anything.

Refinancing out of FHA insurance is its own category of win: at 20% equity, moving to conventional can erase the monthly premium entirely — savings that don't depend on rates falling at all.

Straight Answers

Rate & Term Refinance: what buyers ask

How much does a refinance cost?

Typically 2–3% of the loan amount in closing costs, which can often be financed or offset with lender credits at a slightly higher rate. Every structure gets a break-even number so you can compare honestly.

When is refinancing worth it?

When savings recoup costs within your realistic stay-in-the-home window — commonly 24–36 months. We'll tell you plainly when it doesn't pencil.

Will refinancing restart my 30 years?

Only if you choose a new 30-year term. You can match your remaining term, or shorten it — a 30-to-15 refi at the right rate can save six figures in interest.

Do I need 20% equity to refinance?

No — rate-and-term programs exist at higher loan-to-value ratios. 20% equity mainly matters for dropping mortgage insurance.

I have a VA loan — is there a faster way?

Yes: the VA IRRRL streamline skips the appraisal and income re-verification in most cases. We have a whole calculator for it in our Tools section.

Compare

Other programs worth pricing

Serving in the military, or served? The VA loan is our specialty — $0 down, no PMI, and usually unbeatable if you qualify.

220+ lenders. One application. Your best deal.