Due to the economic impact of COVID-19, the federal government has cut interest rates. These cuts affect various types of mortgages differently, and Due to the economic impact of COVID-19, the federal government has cut interest rates. These cuts affect various types of mortgages differently, and have also driven a spike in demand, putting pressure on lenders and their staff. As a result, you may see no rates on our site, or you may see higher rates on government-backed mortgages like VA loans, as lenders tighten credit standards amid economic uncertainty. Learn more about the coronavirus’ impact on mortgage rates.
The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive VA loan rates. This interest rate table is updated daily to give you the most current rates when choosing an VA mortgage home loan.
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 3.080% | 3.400% |
| 20-Year Fixed Rate | 3.060% | 3.330% |
| 15-Year Fixed Rate | 2.660% | 3.000% |
| 10/1 ARM Rate | 3.560% | 4.020% |
| 7/1 ARM Rate | 3.330% | 3.920% |
| 5/1 ARM Rate | 3.280% | 4.040% |
| 30-Year VA Rate | 2.770% | 3.040% |
| 30-Year FHA Rate | 2.790% | 3.470% |
| 30-Year Fixed Jumbo Rate | 3.120% | 3.240% |
| 15-Year Fixed Jumbo Rate | 2.710% | 2.780% |
| 7/1 ARM Jumbo Rate | 3.430% | 3.880% |
| 5/1 ARM Jumbo Rate | 3.390% | 3.950% |
Rates as of August 7th, 2020 at 6:30 AM
Interest rates on most types of mortgages have gone down recently, and according to Bankrate’s latest mortgage rates survey, the majority of experts believe rates will continue to fall.
Bankrate has been the authority in personal finance since it was founded in 1976 as the “Bank Rate Monitor,” a print publication for the banking industry. Bankrate has been surveying and collecting mortgage rate information from the nation’s largest lenders for more than 30 years. Hundreds of top publications, such as The New York Times, Wall Street Journal, CNBC and others, depend on Bankrate as a trusted source of financial information, so you know you’re getting information you can trust.
Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans. The interest rate table below is updated daily to give you the most current purchase rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single family residence. To learn more, see understanding Bankrate's rate averages.
VA home loans are mortgages that are partially backed by the U.S. Department of Veterans Affairs, or VA. They are a viable option for eligible homebuyers as they often don’t require a down payment or PMI, private mortgage insurance.
This feature is unique as most low down-payment loans (less than 20 percent down) require PMI, which can add hundreds to your mortgage bill each month.
"The VA loan program is one of the best available for eligible homebuyers. VA loans offer lower interest rates than conventional products which means VA buyers can save money in interest over the life of the loan. VA loans also do not require down payments which can be an especially attractive benefit for first-time homebuyers,” says Kevin Parker, vice president of field mortgage at Navy Federal Credit Union. “Additionally, VA buyers do not have to pay private mortgage insurance (PMI), which is sometimes required when paying little down on a conventional product and can add a significant cost to monthly mortgage payments.”
VA loans have specific appraisal and home inspection requirements, which allows buyers to feel more confident in the property they are purchasing, Parker points out.
A VA loan offers several benefits you may not get with other types of loans.
However, there are also potential drawbacks.
These loans are made by private lenders and are available to active duty service members, veterans, current and former National Guard and reserve members, and surviving spouses. Interested buyers will need to obtain a certificate of eligibility from the U.S. Department of Veterans Affairs.
Eligible homebuyers can apply for a COE in several ways, by mail, online and through your lender.
In general, VA loans tend to have lower rates than other mortgages such as conventional loans and FHA loans. Below, you can see how a VA loan differs from a conventional 30-year fixed mortgage.
| VA Loan 30-Year Fixed Loan | Conventional 30-Year Fixed Loan | |
|---|---|---|
| House price | $300,000 | $300,000 |
| Down payment | $9,000 (3%) | $9,000 (3%) |
| Loan amount | $291,000 | $291,000 |
| Interest rate | 3.370% | 3.400% |
| Principal + interest | $1,285 | $1,290 |
| PMI (mortgage insurance) | $0 | $121 (.50%) |
| Total monthly payment | $1,285 | $1,411 |
Different lenders offer different rates, so it’s important to comparison shop if you want to get the best deal. You can check Bankrate’s rate table which offers current information on various lenders. You can also visit lenders’ websites to see their VA interest rates today.
VA loan purchase rates can vary from the rates you’d find on a VA loan refinance. The rate you may get for either depends on factors such as:
Loan term
If current interest rates are lower than the rate on your existing mortgage, now may be a good time to refinance.
| Loan Type | Purchase Rates | Refinance Rates |
|---|---|---|
| The table above links out to loan-specific content to help you learn more about rates by loan type. | ||
| 30-Year Loan | 30-Year Mortgage Rates | 30-Year Refinance Rates |
| 20-Year Loan | 20-Year Mortgage Rates | 20-Year Refinance Rates |
| 15-Year Loan | 15-Year Mortgage Rates | 15-Year Refinance Rates |
| 10-Year Loan | 10-Year Mortgage Rates | 10-Year Refinance Rates |
| FHA Loan | FHA Mortgage Rates | FHA Refinance Rates |
| VA Loan | VA Mortgage Rates | VA Refinance Rates |
| ARM Loan | ARM Mortgage Rates | ARM Refinance Rates |
| Jumbo Loan | Jumbo Mortgage Rates | Jumbo Refinance Rates |
Determine how much of your monthly payment will go toward the principal and how much will go towards interest.
