Refinance VA Loan on primary home to turn into a rental

[Kyle Stephenson]

Hello all! First time poster, long time podcast listener.

So I’ve currently owned (and lived in) one home in Las Vegas for the last three years. I’m moving out of state and planning to turn my current primary home into a rental home.

My question is should I refinance it? Here’s why I ask:

My current loan is a VA loan with 4.50% interest rate at $1356.66 a month from USAA. I keep getting mail from USAA about refinancing my house with them. They claim I can get another VA loan for 2.250% at $851.22 a month.

I’d like to sell it a few years down the road. I guess I don’t know the pros and cons of refinancing. It almost sounds too good to be true. Thanks BP!