A VA Cash-Out Refinance Can Carry a Lower Rate
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A VA cash-out refinance carried a lower rate than a conventional cash-out loan in FreeRateUpdate’s lender network. On October 8 the best advertised 30-year VA cash-out rate we recorded was 6.25%, half a point below the best conventional cash-out refinance at 6.75%.
The VA rate came in lower on every one of the 32 days we recorded from September 1, by three eighths to half a point. On October 8 those advertised rates, which aren’t quotes, had APRs of 6.785% on the VA loan and 6.967% on the conventional one.
| Date | VA cash-out | Conventional cash-out |
|---|---|---|
| September 1 | 5.625% | 6.125% |
| September 15 | 5.875% | 6.375% |
| September 26 | 6.25% | 6.625% |
| October 2 | 6.25% | 6.75% |
| October 8 | 6.25% | 6.75% |
How the rates compare on the same balance
Take a $300,000, 30-year cash-out loan at the October 8 rates, for a veteran who has a VA Certificate of Eligibility and qualifies with the lender, paid on schedule with no refinancing or extra payments. The principal and interest payment, not counting points or a VA funding fee, which would raise the balance if it’s rolled into the loan, is about $1,847 a month as a VA loan at 6.25%, against $1,946 at the conventional rate of 6.75%.
That’s about $99 a month in scheduled principal and interest on the same balance, or roughly $35,500 over the 30 years, and the VA rate came with fewer points that day, 1.704 against 1.775.
Source: FreeRateUpdate As Low As rate history, best advertised rates in our lender network, recorded September 1 to October 8, 2026. Captured data: 30-year VA cash-out · 30-year conventional cash-out.
