Should You Refinance Your VA Loan? Here's When It Actually Makes Sense

Last month, I helped a veteran in Port St. Lucie drop his mortgage payment by $340 and pull out $45,000 in cash — all with one VA refinance. But the month before that, I told another veteran to wait because refinancing would have cost him money.

The difference? Knowing exactly when a VA refi makes sense and when it doesn't.

I'm Emmett Dempsey — a U.S. Army veteran and licensed mortgage broker here in Port St. Lucie, Florida — and I've seen too many homeowners rush into refinancing without running the real numbers first.

Let me show you the framework I use to help veterans make the right call.

Your Two VA Refinance Options

IRRRL (Interest Rate Reduction Refinance Loan) The "VA Streamline Refi" is designed for veterans who already have a VA loan and want to lower their rate. No appraisal required in most cases, no income documentation, lower closing costs, and fast closings. It's the easiest refinance option available to veterans.

VA Cash-Out Refinance This lets you tap into your home's equity and convert it to cash for debt consolidation, home improvements, or other financial goals. You can also use this to refinance FROM a conventional or FHA loan INTO a VA loan — not just VA to VA.

The Real Test: When Refinancing Actually Pays Off

Here's my simple three-question test. A refinance should do at least one of these things:

• Lower your monthly payment meaningfully

• Shorten your loan term without breaking your budget

• Give you access to equity at a reasonable cost

When the numbers usually work:

You can drop your rate by 0.5% or more Real example: A client with a $300,000 balance dropped from 4.2% to 3.6%. That saved him $186 per month — over $2,200 per year.

You're staying put for at least 2-3 years This gives you time to recoup closing costs. If you're moving soon, those upfront costs rarely pay off.

You're drowning in high-interest debt I recently helped a veteran consolidate $28,000 in credit card debt (at 22% interest) using a VA cash-out refi at 4.1%. His total monthly payments dropped by $440.

You bought when rates were high and qualify for IRRRL If you bought in 2022-2023 when rates hit 6-7%, an IRRRL could be a no-brainer. No appraisal, no income verification — just lower payments.

When to Pump the Brakes

You're already locked into a great rate If you're sitting at 3.5% or lower, the savings probably aren't worth the hassle and costs right now.

You're planning to sell within two years Closing costs on a refi typically run $2,000-$4,000. If you're moving soon, you won't break even.

You don't have sufficient equity for your goals For cash-out refinancing, you'll typically need at least 10-20% equity remaining after the loan.

You're chasing a skipped payment Yes, you can skip a payment when you refi, but that's not a reason to refinance. Focus on the long-term financial benefit.

Florida Market Reality Check

Florida homeowners — especially here on the Treasure Coast — have seen massive equity gains since 2020. If you bought in Port St. Lucie, Stuart, or anywhere in St. Lucie County before 2022, you're likely sitting on significant equity.

I've helped local veterans access $30,000 to $80,000+ through cash-out refinances, often without dramatically increasing their monthly payments. In Tradition, Verano, and other newer communities, some clients have seen their home values increase 40-60% since purchase.

Real Client Example

The Situation: Marine veteran bought in PSL in 2021 for $285,000 at 3.8%. Home now worth $425,000. Carrying $22,000 in credit card debt at 19% average interest.

The Solution: VA cash-out refi at 4.2% for $320,000. Paid off all credit cards and improved his credit score.

The Result: His mortgage payment increased by $125/month, but eliminating credit card payments saved him $580/month. Net monthly savings: $455.

Before You Make Any Moves

Don't guess — let's run your actual numbers. I'll show you:

• Your potential monthly savings with current rates

• How much equity you could access (with recent comps)

• Your exact breakeven timeline

• Whether waiting 3-6 months might save you more

Most importantly, I'll tell you if refinancing doesn't make sense for your situation. Sometimes the best advice is to wait.

Ready to See What's Possible?

Book a Call and let's talk.

Emmett Dempsey
U.S. Army Veteran | Mortgage Broker
Treasure Coast Mortgage, Port St. Lucie, FL
📞 772-618-5058
📧 [email protected]
🌐 tcmortgage.com
NMLS #208522

You served our country. Let me serve you by making sure your VA benefit keeps working hard for your family's financial future.