VA Cash-Out Refinance Calculator for Debt Consolidation
See what happens when you pay off debts with a VA cash-out refinance: your new loan, funding fee, monthly savings, total cost, and VA’s net tangible benefit check.
VA Cash-Out Debt Consolidation
Monthly savings · Total cost · VA benefit check
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How to Use the VA Cash-Out Refinance Calculator
- Enter your home value and your current mortgage balance, rate, payment and months left.
- Enter the total balance, monthly payments and months left on the debts you want to pay off.
- Enter the new interest rate, loan term, closing costs and VA loan use.
- Click Compare My Cash-Out Refinance.
The VA cash-out refinance calculator compares your monthly payments and your total cost before and after, and checks VA’s net tangible benefits. Review both results in the VA cash-out refinance calculator before you decide.
How a VA Cash-Out Refinance for Debt Works
A VA cash-out refinance replaces your current mortgage with a larger VA loan and uses the extra money to pay off other debts. Your separate debt payments go away, and you make one mortgage payment instead.
VA lets the new loan go up to 100% of the home’s reasonable value, as set by the VA appraisal. The VA funding fee is added to the loan and is part of that limit.
VA’s net tangible benefit rule
Every VA cash-out refinance must meet at least one net tangible benefit. The options are: a lower interest rate, a lower principal and interest payment, a shorter loan term, a loan-to-value of 90% or less, eliminating monthly mortgage insurance, higher residual income, moving from an adjustable rate to a fixed rate, or refinancing an interim construction loan.
Watch the total cost
Moving short-term debts into a 30-year mortgage can lower your monthly payment but raise what you pay over time. The calculator compares the total of payments left today with the total on the new loan, so you can see both sides.
VA Cash-Out Refinance FAQ
How much can I borrow with a VA cash-out refinance?
Up to 100% of the home’s reasonable value, including the funding fee. Lenders may set lower limits.
What is the funding fee on a VA cash-out refinance?
2.15% of the loan amount for first use and 3.3% for subsequent use. Veterans who receive VA disability compensation, and some others, are exempt.
Does the 36-month recoupment rule apply?
Only to Type I cash-out loans, where the new loan is no larger than the loan being paid off. A debt consolidation loan is larger, so it is Type II.
