I am looking for any and all advice to my situation;

Primary question is whether or not to refi out of my current VA loan in order to re-establish my VA eligibility for a future purchase or not. If so, what mortgage option to use. Overall intent would be to regain the leverage of a VA loan in a future location/purchase.


Primary residence, $325K loan, home value est at $45, VA 30 year fixed at 3.75%. I would turn this home into rental when I depart (I am still active duty military and plan to move summer 2017).

Mortgage options with ~95% LTV:

30 year fix at higher rate (with points/fees) increases payment ~$50. I would about break even on rental income vs expenses.

5/5 ARM at about same rate (with points/fees) decrease payment ~$80. I would be positive less than $100 each month.

30 year FHA much lower rate (with point/fees/PMI)

Some concerns:

-paying appraisal fee and home coming in under value

-paying closing costs or rolling into loan, either way adding expenses

Open to your thoughts. Thanks.