VA vs Conventional Refinance Comparison
Compare the true costs of refinancing to a conventional loan vs keeping your VA loan
VA Loan
Loan Amount$500,000
Interest Rate6.500%
P&I Payment$3,160
PMI/MIP$0
Total Monthly$3,160
No down payment required
No PMI ever
Lower interest rates
Conventional Loan
Loan Amount$400,000
Interest Rate6.875%
P&I Payment$2,628
PMI (if < 20% down)$0
Total Monthly$2,628
Down payment required ($100,000)
PMI required if < 20% down
Higher interest rates
Cost Comparison Summary
Monthly Difference
$533
Conv. saves per month
Annual Difference
$6,391
Conv. saves per year
5-Year Difference
$31,957
Conv. saves over 5 years
Don't Forget These Costs:
VA Funding Fee (2.3% first use):$11,500
Conv. Down Payment (20%):$100,000
Note: This calculator compares principal, interest, and PMI only. Actual payments include taxes, insurance, and HOA fees. VA rates typically average 0.25-0.47% below conventional rates. PMI estimates based on credit score and LTV ratio. Consult with a loan officer for personalized rates and exact costs.