Compare Current VA Refinance Rates

Current Mortgage Rate Trends

Mortgage rates on home purchases remain considerably higher than rates of a few years ago. As of June 2025, the average 30-year fixed conventional mortgage rate is 7.23%, while the 15-year fixed rate stands at 6.26%, according to Curinos. Historically, 15-year fixed mortgage rates are about 0.5% to 0.75% lower than 30-year fixed rates.

Adjustable-rate mortgages (ARMs) are currently averaging 6.66%. VA loans to purchase a home have an average rate of 6.51%. The VA option currently offers the lowest average rate among standard 30-year mortgage types.

^*Source: Curinos LLC, June 6, 2025; assumes a 720 FICO^® Score, $350,000 mortgage
^**Source: Optimal Blue via FRED, June 6, 2025
Notes: Rates can vary by data source; monthly payment calculation uses APR and assumes a $350,000 mortgage and 20% down; APR calculation assumes 5% in fees

Mortgage Rate Trends for the Last 5 Years

Borrowers have seen dramatic fluctuations in mortgage rates over the past five years. Already reduced rates in early 2020 dropped to record low levels later that year and in 2021, as the Federal Reserve cut rates in response to the pandemic and rising inflation.

Many veterans took advantage of the drop, with IRRRLs accounting for 53.1% of all VA loans in fiscal year 2020 and 57.7% in 2021, according to the VA.

Those low rates gave way to substantially higher ones in 2022 and 2023, due to the Fed's aggressive schedule of 11 consecutive rate hikes to curb inflation. Freddie Mac reports average mortgage rates spiked from 3.45% in January 2022 to a peak of 7.62% in October of 2023. VA mortgage rates, including those for refinance loans, followed a similar path, rising from 3.12% to 7.41% over that same period, according to Optimal Blue via Federal Reserve Economic Data (FRED).

You likely wouldn't benefit from refinancing if you took out your current mortgage during 2020 or 2021 when rates were below 4%. But you might still save on interest if your current mortgage has a rate at or above 7%.

30-Year Mortgage Rate Trends 2020 to 2025

What Affects VA Refinance Rates?

Your VA refinance rate depends on a variety of factors, including your financial profile. While the VA doesn't have a minimum credit score requirement, a high credit score may improve your odds of securing a favorable rate. As with other types of home loans, your income, debt-to-income ratio (DTI) and loan-to-value ratio (LTV) also factor into the rate you receive.

IRRRLs generally offer lower rates than other types of home loans because they are backed by the government, which reduces the lender's risk. This type of refinance may be one of the most affordable options to lower your rate.

While VA loans are generally more affordable than other mortgage options, they're still affected by broader economic factors, such as:

• Federal Reserve policy: The Federal Reserve doesn't set mortgage rates, but when the agency raises or lowers interest rates, mortgage rates often follow suit.
• Inflation: When prices rise, central banks raise their interest rates. That causes a downstream effect, as banks and mortgage lenders must raise their rates as well to protect their margins.
• 10-year Treasury yields: Mortgage rate trends often reflect 10-year Treasury yields because lenders use Treasury yields as a guide for setting their rates. Consequently, when the yield on the 10-year Treasury goes up, mortgage rates tend to go up as well, and vice-versa.
• Housing market conditions: Lenders adjust rates based on risk and market demand. They typically raise rates when default rates are high or lower them to attract more borrowers when applicant levels are down.

Learn more: Factors That Help Determine Your Mortgage Interest Rate

VA Loan Requirements

VA loans are government-backed and offer attractive benefits, such as no down payment or mortgage insurance. To qualify, you must meet the following VA loan requirements.

• You must be an active-duty service member, veteran or eligible surviving spouse.
• The home must be your primary residence.
• You'll need to confirm your eligibility with a Certificate of Eligibility (COE). You can request one on the VA's website.
• The VA doesn't set a minimum credit score guideline, but your lender may. While some lenders will accept a credit score as low as 580, your approval odds are greater with a score of 620 or higher.

Also, you must pay a VA funding fee unless you qualify for an exemption.

Tip: Rates, costs and requirements vary by lender. It's wise to get loan estimates from several VA-approved lenders so you can compare APRs and find the most affordable loan.

Pros and Cons of a VA Refinance

A VA refinance loan can help you save money or tap into your home's equity, but it's wise to consider the VA loan pros and cons before proceeding.

How to Get the Best VA Refinance Rate

Follow these tips to improve your chances of securing a lower VA refinance rate:

• Shop and compare lenders. Just like with conventional home loans, your VA refinance rate and terms can vary from one lender to another. It's important to review costs with multiple lenders to find the best loan for your situation.
• Improve your credit. While the VA doesn't set a minimum credit score, your lender may offer a lower rate if you have a high credit score. Check your credit report to ensure it's accurate, and take steps to improve your score before applying.
• Buy discount points. You may be able to lower your rate by purchasing discount points at closing. Generally, each point costs 1% of the loan amount and can lower your rate by around 0.25%.
• Choose a shorter loan term. You'll likely get a better rate with a 15-year loan versus a 30-year loan because they carry less risk for the lender. As a result, you'll pay less interest overall, but your monthly payment will be higher since the loan is paid off sooner.
• Lock in your rate. Once you choose your lender, ask them to lock your rate to keep it from rising before you close on the loan. Rate locks typically last for 30 to 60 days.

Learn more: How to Get the Best Mortgage Rate

Should You Refinance Your VA Loan?

The decision of whether you should refinance your VA loan will likely come down to your financial situation and what you hope to achieve with the refinance.

Refinancing could be a solid option if your current rate is higher than what you might qualify for with a VA refinance. It could also be a good move if you're paying private mortgage insurance (PMI) on a non-VA loan and want to eliminate it. An IRRRL may help you lower your interest rate with less underwriting than with conventional loans. Or you might use a VA cash-out refinance to access more of your home's equity than other mortgages allow.

On the other hand, you might pause before refinancing if the rate on your existing mortgage is lower than current market rates or if you plan on moving soon. As you're comparing lenders, review VA funding fees and closing costs. Keep in mind, it could take years to break even, and it could end up costing you more than you're saving, especially if you don't plan to stay in the home for long.

Learn more: How to Refinance a Government-Backed Mortgage

The Bottom Line

Overall, VA refinance loans can be a great option if you qualify for one and stand to get a lower rate than your existing loan. They offer several benefits, including less stringent eligibility criteria and no mortgage insurance requirement. But before you apply, run the numbers to confirm you'll actually save once you consider fees, rates and other factors. If you're taking cash out, make sure you'll qualify for enough to achieve the goal for which you're borrowing.

While the VA guidelines don't require a minimum down payment, you may secure a lower interest rate with strong credit. You can check your FICO^® Score and credit report for free with Experian to get a clearer picture of your credit and take steps to improve your credit before refinancing.