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Learn more about VA Loan Rates
Learn more about VA Loan Rates in our next section, or contact VHVBH to speak with an expert about the benefits of the VA Loan
VA Loan Rates
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.
1. No Down Payment
Saving money and building credit can be difficult for service members who are constantly on the move. With the VA Loan, qualified borrowers can finance 100 percent of the home’s value without putting down a dime. Take a look at the chart below to see how much you can save through the no-money-down benefit of the VA Loan.
Current VA Mortgage Rates
VA loan rates change daily based on market conditions. See current VA loan rates for each VA loan type below.
| VA Loan Type | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed VA | 2.875% | 3.167% |
| 15-Year Fixed VA | 2.750% | 3.251% |
| 30-Year Streamline (IRRRL) | 3.250% | 3.408% |
| 15-Year Streamline (IRRRL) | 2.750% | 2.998% |
| 30-year VA Cash-Out | 2.875% | 3.167% |
| 15-year VA Cash-Out | 2.750% | 3.251% |
| 30-Year Fixed VA Jumbo | 2.990% | 3.303% |
| 30-Year Streamline (IRRRL) Jumbo | 3.125% | 3.321% |
| 30-Year VA Cash-Out Jumbo | 2.990% | 3.303% |
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
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.
Answer a few questions below to speak with a specialist about what your military service has earned you.
Getting a mortgage can be complicated. VHVBH 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.
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.
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.
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.)
VA loan rates can change frequently - sometimes multiple times a day.
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.
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.
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.
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.
Once you're officially under contract on a home, you may lock in your rate or "float" until you are ready to lock.
When to lock the interest rate is entirely up to you. However, your Veterans United loan officer will provide guidance and their expertise to help you navigate when to lock your rate.
If you're ready to get started determining your VA home loan rate, or if you have more questions, contact a home loan specialist 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.
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.
VA Loan Specialists are available 24 hours a day 7 Days a week to serve Veterans and Troops World Wide.
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