Current VA loan rates

Will VA loan rates go up or down?

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.

Why trust Bankrate?

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.

How Bankrate mortgage rates are calculated

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 rate averages.

What is a VA loan?

VA home loans are mortgages that are partially backed by the U.S. Department of Veterans Affairs, or VA. They are available to current or former members of the military, and can be a great option for borrowers who qualify. VA loans don’t require a down payment or PMI.

That makes them especially competitive with other loans that allow for low down payments, because those usually require PMI if the buyer puts down less than 20 percent. PMI can add hundreds of dollars 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, 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.

Pros and cons of VA loans

A VA loan offers several benefits you may not get with other types of loans.

• Generally lower rates than conventional mortgages
• More flexible credit underwriting
• No down payment or private mortgage insurance (PMI) requirement
• Refinance options: If you currently have a VA loan, you can get an Interest rate reduction refinance loan (IRRRL) with a lower rate and lower your monthly payments.
• If you currently have a mortgage, you can refinance it into a VA loan with a lower rate and applicable benefits

However, there are also potential drawbacks.

• Certain eligibility requirements
• Generally can’t be used to purchase a second home or investment property, with some exceptions
• VA funding fee based on current duty status, amount of down payment (if making one) and how much is borrowed

Who qualifies for a VA loan?

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 borrowers will need to obtain a certificate of eligibility from the U.S. Department of Veterans Affairs.

• Veterans
• Active duty servicemember
• Current or former National Guard or Reserve member (regardless of whether they have been activated for Federal Service)
• Discharged member of the National Guard (wh(regardless of whether they have been activated for Federal Service)
• Surviving spouse

Eligible homebuyers can apply for a certificate of eligibility in several ways: by mail, online or through your lender.

How a VA loan compares to other mortgage rates

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.

How do I find the best VA loan rates?

Different lenders offer different rates, so it’s important to shop around if you want to get the best deal. You can check our rate table which offers current information on various lenders. You can also visit lenders’ websites to see their VA interest rates today.

How are VA purchase rates different from VA refinance rates?

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:

• Credit history
• Loan-to-value ratio

Loan term

If current interest rates are lower than the rate on your existing mortgage, now may be a good time to refinance.