Lenders can charge VA home loans at relatively low interest rates since the federal government guarantees them. Rates for VA home loans are typically lower than those for conventional mortgages for qualified veterans and active duty military personnel.
Interest rates are not determined by the Department of Veterans Affairs (VA). The interest rate on your VA loan is decided by your lender depending on your particular financial position.
Ask a mortgage expert about the current VA loan rates.
Current VA Mortgage Rates
| 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
A good credit score nearly usually translates into reduced rates because lending is risky. However, even if your credit record isn’t in great shape, the VA Guaranty may make it easier for you to get approved for a cheap rate.
Veterans United offers a free credit advising service to help put you on the path to preapproval if credit is a concern.
See What You Qualify For Today
Answer a few questions below to speak with a specialist about what your military service has earned you.
Select your branch of service:
- Army
- Marine Corps
- Navy
- Air Force
- Coast Guard
- Military Spouse
- Other VA Eligibility
- No Military Experience
2,974 veterans started their quote online today
Common Questions About VA Loan Rates
Mortgage applications can be challenging. Veterans United aims to make the process simpler by educating you about your options and assisting you in doing so.
To help you make better choices, we’ve compiled some of the most frequently asked questions about mortgage rates below.
Who Sets VA Loan Rates?
VA loan interest rates are set by private lenders like banks and mortgage firms. Although it does not set the rate, the Department of Veterans Affairs (VA) insures a portion of each loan against default.
How Do VA Loan Rates Compare With The Rest Of The Market?
Rates for VA loans are typically less expensive than those for FHA and conventional loans on average. The fact that the VA backs a portion of each loan results in generally lower VA loan rates.
How Are VA Loan Rates Determined?
Interest rates for VA loans are determined by a number of variables. The market forces that the lender has no control over, such as inflation, job growth, and the secondary mortgage market, are responsible for many of these factors.
Beyond general market conditions, the following factors affect VA loan rates:
- Mortgage credit scores
- Previous loan repayment history
- Loan duration (15 or 30-year)
- Loan type (purchase, IRRRL, cash-out, jumbo, etc.)
Are VA Refinance Rates Different From VA Purchase Rates?
Rates on VA refinance loans frequently differ from those on VA purchase loans. Rates for VA refinance loans may vary depending on the loan type, the borrower’s credit history, the loan-to-value ratio, and other variables.
Today’s VA Refinance Rates
| VA Refinance Type | Interest Rate | APR |
|---|---|---|
| 30-Year Streamline (IRRRL) | 5.750% | 5.944% |
| 15-Year Streamline (IRRRL) | 5.500% | 5.863% |
| 30-year VA Cash-Out | 5.750% | 6.096% |
| 15-year VA Cash-Out | 5.500% | 6.135% |
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?
Understanding the distinction between your interest rate and the annual percentage rate is crucial (APR). The interest rate on your VA loan is the cost of borrowing the money each year; it does not account for any costs you could pay to get the loan.
The APR on a VA loan, on the other hand, is a more comprehensive reflection of borrowing costs, including the interest rate and fees related to obtaining the mortgage.
The following factors are among those that APR can consider:
- 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 choice to purchase discount points in order to lower their interest rate. You essentially pay interest upfront when you buy discount points so that you can get a lower rate over the course of the loan.
Generally speaking, borrowers who intend to keep their home for a longer period of time benefit more from points. Your loan officer can assist you in figuring out the break-even point for buying discount points or whether points are even necessary in your particular circumstance.
What Is A Rate Lock?
A rate lock ensures a fixed interest rate for a predetermined period of time, usually between 30 and 60 days. Given that mortgage rates frequently change daily, rate locks are a crucial step in the mortgage application process.
How Do You Lock In Your VA Loan Interest Rate?
A rate lock is only available to buyers who are under contract. Once it is completed, the timing can change based on a number of variables, such as the loan type, the state of the economy, and more.
Contact a home loan consultant at 1-855-258-3548 or begin your VA Home Loan quotation online if you’re ready to discover what rates are currently, or if you have further questions.
You won’t be under any commitment and will get a step closer to purchasing your new house.
Why Veterans United?
Finding a lender who is aware of your requirements and the factors influencing VA loan interest rates is crucial if you want to lock in your interest rate at the proper time.
Some lenders offer borrowers rates that are so ridiculously low that it is practically hard to qualify for them. We’ll provide you with an accurate and reasonable price while working within your budget.
There are no additional fees or hidden charges with Veterans United. You can get complete information regarding your interest rate by connecting with a Veterans United loan counsellor.
Are you purchasing your first home? For more details on getting a VA loan to buy your first house, read the section after this one.