If you’re a veteran or active-duty service member living in Florida, you may be sitting on an opportunity to save money or unlock equity—without the headaches of a traditional refinance. VA refinance loans, backed by the Department of Veterans Affairs, offer some of the most competitive rates and terms in the market.
But just like any mortgage product, rates can vary based on timing, credit, lender, and the type of refinance you choose. Understanding VA refinance rates in Florida is the first step toward making the most of your benefits.
Let’s break down how VA refinances work, what rates look like in Florida right now, and what to expect in the process.
What Is a VA Refinance Loan?
A VA refinance loan allows eligible homeowners to either lower their interest rate or take cash out of their home’s equity. There are two main types:
1. VA IRRRL (Interest Rate Reduction Refinance Loan)
This is often referred to as a “streamline refinance.” It’s designed to help you quickly refinance an existing VA loan to a lower rate or better terms. It typically doesn’t require a new appraisal or income verification and comes with minimal paperwork.
2. VA Cash-Out Refinance
This option allows you to take cash out of your home’s equity—even if your current mortgage isn’t a VA loan. It’s more involved than a streamline refinance and does require an appraisal, but it can be useful for large expenses like renovations, debt consolidation, or emergency funds.
Both loan types offer competitive rates, no private mortgage insurance (PMI), and favorable terms for Florida’s veterans.
How VA Refinance Rates Work
VA refinance rates in Florida can either be fixed (same rate for the life of the loan) or adjustable (starts lower but can increase over time). Most borrowers choose a fixed rate for stability, especially in a rising interest rate environment.
Several factors determine your refinance rate:
- Credit Score – Higher credit scores typically unlock lower rates.
- Loan Term – Shorter terms, like 15 years, tend to come with lower rates than 30-year terms.
- Lender Margins – Different lenders in Florida offer slightly different rates based on their business models and risk assessments.
- Market Conditions – Rates move with the Federal Reserve and general economic outlook.
- Loan Type – VA IRRRLs often have lower rates than Cash-Out options, due to the reduced risk and paperwork involved.
Even though VA loans are backed by the government, each lender sets their own rates and terms. That’s why it’s critical to compare offers.
Current VA Refinance Rates in Florida (March 2025)
As of March 2025, here’s what actual VA refinance rates in Florida look like:
VA IRRRL (Streamline Refinance)
- 740+ Credit: 5.75% – 6.25%
- 700–739 Credit: 6.25% – 6.75%
- 660–699 Credit: 6.75% – 7.25%
VA Cash-Out Refinance
- 740+ Credit: 6.25% – 6.85%
- 700–739 Credit: 6.85% – 7.35%
- 660–699 Credit: 7.35% – 7.85%
Some Florida-based lenders also offer 15-year VA refinance options as low as 5.50% for borrowers with excellent credit. While the monthly payments are higher due to the shorter term, the total interest paid over time is significantly less.
Rates may also differ based on location and lender. For example, some banks in Florida offer limited-time rate promotions for veterans, while others allow you to lock your rate early in the process.
It’s also worth noting that VA refinance loans have no PMI, and closing costs are regulated, helping to keep overall borrowing costs lower—even if the rate isn’t the absolute lowest on paper.
Benefits of a VA Refinance Loan in Florida
VA refinance loans come with several major advantages, especially for Florida homeowners who may be navigating rising home costs, unpredictable insurance rates, or upcoming expenses.
Lower Monthly Payments
With a VA IRRRL, many borrowers can reduce their interest rate and monthly payment—especially if they locked in a loan years ago when rates were higher.
Access to Home Equity (Cash-Out Option)
The VA Cash-Out Refinance allows you to tap into your home’s equity to cover large expenses. This can be a powerful tool for renovations, medical bills, education, or even paying off high-interest debt.
No Private Mortgage Insurance (PMI)
Unlike conventional refinance loans that often require PMI when your loan-to-value ratio is high, VA loans skip this cost altogether—saving you hundreds each month.
Easier Qualification
VA guidelines are often more flexible than conventional lenders. You may qualify even with a lower credit score or higher debt-to-income ratio.
Limited Closing Costs
The VA limits the kinds of fees lenders can charge, which can keep your upfront costs more manageable.
For Florida veterans, these benefits can make a big difference—especially when combined with rising home values in places like Tampa, Jacksonville, and Orlando.
VA Refinance Requirements
Not every homeowner qualifies for a VA refinance, but the requirements are typically less strict than other mortgage options. Here’s what you’ll need:
For a VA IRRRL:
- You must currently have a VA-backed loan
- You must have made at least 6 consecutive on-time payments
- The new loan must offer a clear financial benefit (lower rate or better terms)
- No cash-out is allowed with this type
For a VA Cash-Out Refinance:
- You must meet VA service eligibility (active duty, veteran, or qualifying family member)
- Home must be your primary residence
- Appraisal and full underwriting are required
- You can refinance from a non-VA loan to a VA loan
Each lender may have additional credit or income requirements, but VA guidelines tend to be more forgiving than conventional loans.
How to Lock in the Best VA Refinance Rate in Florida
Getting the best rate isn’t just about luck—it’s about preparation and choosing the right partner. Here’s how to improve your chances:
Check Your Credit Score
Even a small increase in your credit score can result in a significantly lower rate. Before applying, review your credit report and address any errors or outstanding debts.
Compare Multiple VA-Approved Lenders
Rates can vary by 0.5% or more between lenders. Shopping around is key—especially in Florida, where different counties have different home values and lending conditions.
Choose the Right Loan Type
If your goal is simply to lower your monthly payment, the IRRRL might be best. If you need funds for a specific purpose, the Cash-Out refinance makes more sense.
Work with a Local Expert
Someone who understands Florida’s real estate trends, insurance markets, and VA paperwork can help you avoid unnecessary delays or missteps.
How Select Home Loans Supports Florida Veterans
At Select Home Loans, we take pride in serving the men and women who’ve served our country. We’ve built a team that understands both the VA lending process and the unique aspects of the Florida housing market.
Here’s why veterans trust us:
Veteran-Focused Approach
We know the ins and outs of VA loan paperwork, timelines, and benefits. Whether you’re using your entitlement for the first time or refinancing an existing VA loan, we’ve got you covered.
Local Florida Expertise
From Miami to Tallahassee, we understand how home values, insurance costs, and regional lenders can impact your refinance. We tailor every offer to your specific situation.
Transparent and Efficient
No hidden fees. No confusing terms. We walk you through every step, keep you informed, and make the process as simple as possible.
Faster Closings, Real Support
Our team works hard to move fast. Most VA refinances close quickly, and we’re always here to answer questions—even after you’ve closed.
Steps to Refinance with a VA Loan in Florida
If you’re ready to explore a VA refinance, here’s what the process usually looks like:
1. Pre-Qualification
We’ll review your credit, current mortgage, and financial goals to help determine which loan type is right for you.
2. Application & Documents
You’ll submit basic paperwork—pay stubs, bank statements, mortgage details, and (if applicable) your Certificate of Eligibility (COE).
3. Rate Quote & Lock
We’ll shop for the best available rate and give you a personalized quote based on your credit, loan type, and Florida location.
4. Underwriting & Appraisal (If Needed)
IRRRLs usually skip the appraisal, but Cash-Out refinances require one. Once approved, you’ll be cleared to close.
5. Closing Day
Sign your documents, lock in your new rate, and start saving or accessing your equity.
Conclusion
Whether you’re looking to lower your monthly payments or unlock equity in your Florida home, a VA refinance can be one of the most powerful tools available to veterans and active-duty military.
The key is knowing your options, understanding current rates, and working with a lender that puts your needs first.
At Select Home Loans, we’re honored to help Florida veterans make the most of their benefits. Reach out today to get your personalized VA refinance quote and see how much you could save.
