• Nichole Fox

VA Closing Costs


What is this loan going to cost me? The interest rate is the most important factor that affects the cost of the loan. Generally, the higher the interest rate, the lower the fees. For example, it is possible to get a true No-Cost loan if you refinance into an interest rate that is a little higher than the Par Interest Rate. The Par Interest Rate is the interest rate that does not have any buy down points or lender credit.

Conversely, you can also refinance at an interest rate a little below the Par Interest Rate by paying “discount points” (also known as buy-down points). If you wish to refinance at the “Par Rate”, there is no discount fee and no lender credit.


In addition to closing costs, when you refinance a VA Loan, the new lender will set up a new escrow account. The lender will finance this new escrow account and roll it into your new loan. The old lender will send a refund check for any leftover balance left in the old escrow account. Also, the new lender will allow for deferring a mortgage payment (sometimes the timing allows for deferring 2 payments). The interest from deferring the payments are also rolled into the new loan amount.


The VA allows the lender / broker to charge the following closing costs:

  • Lender Underwriting Fees, which typically range from $550-$650

  • Title and Escrow Fees, which typically range from $700 - $1,500

  • VA Funding Fee, which is usually 0.5% of the new loan amount (Veterans with VA Disability Benefits are exempt from the VA Funding Fee.)

(888) 659-0033

©2020 by Freedomstar Financial, Inc. 

 All Rights Reserved. We are not affiliated with any government agencies, including the VA, FHA, or HUD.   CA - Loans will be made or arranged pursuant to Bureau of Real Estate License #01984665; CO Mortgage Company Registration 100054512, Regulated by the Division of Real Estate; Florida MBR License #2065. GA Residential Mortgage Licensee; Mortgage Lender License #70335. Regulated by the Bureau of Financial Institutions, Virginia Mortgage Lender License and Mortgage Broker License #MC-7043.  Click on these links to access our Privacy Policy. Licenses, and NMLS Consumer Access - NMLS #1439059. This offer is intended for residents of CA, CO, FL, GA, TX, and VA only.

Freedomstar Financial, Inc. | 111 Deerwood Drive, Ste 200 | San Ramon, CA | 94583
518 N. Chelton, Ste 200 | Colorado Springs, CO | 80909

*Product offered is a loan and lender will place a lien on subject property. Borrower is responsible for paying property taxes, homeowner's insurance and home maintenance. Loan is subject to foreclosure for failure to pay taxes and insurance to maintain the property and to comply with loan terms. Loan Officers' primary objective is to provide a loan to the consumer. Individuals portrayed in photography are not actual borrowers.