Because the federal
government backs VA home loans, lenders have the luxury of charging
competitively low interest rates. Eligible veterans and service members find that rates are generally lower with
a VA home loan than a conventional mortgage.
The Department of
Veterans Affairs (VA) doesn’t set interest rates. Your lender determines the
rate on your VA loan based on your unique financial situation.
Speak with a home loan specialist about current
VA loan rates.
Current VA Mortgage Rates
VA loan rates change
daily based on market conditions. See current VA loan rates for each VA loan
type below. Customize Your Rate by Credit Score:
720+
700-719
680-699
660-679
640-659
620-639
View Full Rate
Assumptions
|
VA Loan Type |
Interest Rate |
APR |
Points |
|
30-Year Fixed VA Purchase |
5.375% |
5.758% |
1.0000($2950.00) |
|
15-Year Fixed VA Purchase |
5.250% |
5.937% |
1.2500($3687.50) |
|
30-Year Streamline (IRRRL) |
5.750% |
5.944% |
0.6250($1843.75) |
|
15-Year Streamline (IRRRL) |
5.500% |
5.863% |
0.8750($2581.25) |
|
30-Year VA Cash-Out |
5.750% |
6.096% |
0.5000($1475.00) |
|
15-Year VA Cash-Out |
5.500% |
6.135% |
0.8750($2581.25) |
What Determines My Rate?
A variety of factors
influence VA loan rates, including:
·
Credit score
·
Loan Type (purchase, IRRRL, cash-out, jumbo, etc.)
·
Loan duration (15- or 30-year)
·
Current market conditions
Get your rate: Start your VA Loan quote online
Because of the risk
involved in issuing a loan, a good credit score almost always means a lower
rate. However, even if your credit report isn’t in perfect shape, you may still
have an easier time qualifying for a low rate due to the VA Guaranty.
If credit is a
concern, Veterans United offers a no obligation credit consulting service to help get you on the road to preapproval.
See What You Qualify for Today
Answer a few questions
below to speak with a specialist about what your military service has earned
you.
1. Select your branch of
service:
1. Army
2. Marine Corps
3. Navy
4. Air Force
5. Coast Guard
6. Military Spouse
7. Other VA Eligibility
8. No Military Experience
2,974 veterans
started their quote online today
Common Questions about VA Loan Rates
Getting a mortgage can
be complicated. Veterans United works to simplify the process through education
and helping you understand your options.
We’ve compiled some of
the most common mortgage rate questions below so that you can make more
informed decisions.
Who sets VA loan rates?
Private lenders, such
as mortgage companies and banks, set interest rates on VA loans. The Department
of Veterans Affairs (VA) does not set the rate but backs
a portion of each loan against default.
How do VA loan rates compare with the rest of the market?
On average, VA loan
rates are typically lower than both FHA and conventional mortgage rates. VA
loan rates are generally lower due to the VA backing a portion of each loan.
How are VA loan rates determined?
A variety of factors
go into determining VA loan interest rates. Many of these factors stem from
market forces beyond the lender’s control – including inflation, job growth,
and the secondary mortgage market.
Beyond market
conditions, VA loan rates are determined by your:
·
Mortgage credit scores
·
Previous loan repayment history
·
Loan duration (15 or 30-year)
·
Loan type (purchase, IRRRL, cash-out, jumbo, etc.)
How often do rates change?
VA loan rates can
change frequently – sometimes multiple times a day.
Are VA refinance rates different from VA purchase rates?
VA refinance rates are
often different than rates on VA purchase loans. The type of VA refinance loan,
the borrower’s credit score, the loan-to-value ratio, and other factors can all
play a role in VA refinance rates.
See current VA
refinance rates in the table below.
Today’s VA Refinance Rates
|
VA Refinance Type |
Interest Rate |
APR |
VA Refinance Type |
|
30-Year Streamline (IRRRL) |
5.750% |
5.944% |
30-Year Streamline (IRRRL) |
|
15-Year Streamline (IRRRL) |
5.500% |
5.863% |
15-Year Streamline (IRRRL) |
|
30-year VA Cash-Out |
5.750% |
6.096% |
30-year VA Cash-Out |
|
15-year VA Cash-Out |
5.500% |
6.135% |
15-year VA Cash-Out |
View Rate Assumptions
What VA mortgage rate can I get?
Rates are unique to
each borrower’s financial situation. Speak to a Veterans United home loan
specialist at 1-800-884-5560 to start your rate quote.
What is APR?
It is important to
understand the difference between your interest rate and the Annual Percentage
Rate (APR). The interest rate on your VA loan is the cost you pay each year to
borrow the money and does not reflect fees you may incur to get the loan.
On the other hand,
the APR on a VA loan is
a broader reflection of borrowing costs, including the interest rate and fees
associated with getting the mortgage.
APR can take into
consideration the following items:
·
Interest rate
·
Origination fees and costs
·
Closing agent fees
·
Discount points
·
Other fees dependent on the specific transaction
APR is typically
higher than your base VA loan interest rate. APR is a tool that can help you
compare mortgage offers. But understand that lenders may calculate APR
differently.
What are discount
points?
Borrowers have the
option to buy down their interest rate by purchasing discount points. When you
purchase discount points, you are essentially paying interest upfront to
receive a lower rate over the life the loan.
Points are generally
more advantageous to borrowers who plan to own the home for a longer period of
time. Your loan officer can help you determine the break-even point of
purchasing discount points, or if points even make sense for your specific
situation.
What is a rate lock?
A rate lock guarantees
a set interest rate for a specific amount of time – typically ranging from 30
to 60 days. Rate locks are an essential part of the mortgage process, as
mortgage rates often fluctuate daily.
How do you lock in your VA loan interest rate?
Buyers have to be
under contract in order to be eligible for a rate lock. Once that’s in hand,
the timeline can vary depending on a host of factors, including the type of
loan, the overall economic environment and more.
If you’re ready to see
where rates are right now, or if you have more questions, contact a home loan
specialist at 1-855-258-3548 or start your VA Home Loan quote online.
There’s no obligation,
and you’ll be one step closer to owning your brand new home.
Why Veterans United?
Locking in your
interest rate at the right time is key, which means it’s essential to find a
lender who understands your needs and the forces that shape VA loan interest
rates.
Some lenders try to
entice borrowers with unbelievably low rates that are nearly impossible to
qualify for. We’ll work within your financial means and give you an accurate
and realistic quote.
With Veterans United,
there are no hidden costs or locking fees. By speaking with a Veterans United
loan specialist, you’re given total transparency when it comes to your interest
rate.
Are you a first-time
homebuyer? Read our next section for more information about purchasing your first home with a VA Loan.
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