Switching from a VA 3.375% to a Conventional 4.85%.

[Juan Giraldo]

I currently have 2 VA loans, and I am trying to free up one of them so I can purchase another home in the area where I currently live. My dilemma is: the VA loan (currently with about 25% equity) that I am trying to refinance to a conventional currently has a 3.375% interest rate while the new 30yr conventional will be 4.85%.

The house that I am planning on purchasing is around the $200k price range so if i choose to go conventional, I will most likely have to put 20% down (around $40K), versus buying it with VA loan which will finance 100% of the purchase price. What do you think I should do given the circumstances? Is it worth it to do it?

Thanks in advance, Felipe!