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Compare current VA loan rates
Weekly national VA mortgage interest rate trends
Current mortgage rates
30 year fixed VA | 6.75% |
Today's national VA mortgage interest rate trends
For today, Monday, December 09, 2024, the national average 30-year VA mortgage interest rate is 6.80%, up compared to last week’s of 6.65%. The national average 30-year VA refinance interest rate is 7.42%, up compared to last week’s rate of 6.68%.
While these rate averages regularly fluctuate, they can help you identify changes in the market. The specific rate you’re offered depends on a number of factors, including your individual credit and finances.
Current VA loan interest rates
VA loan rates tend to be slightly lower than rates for other mortgage types, but not always. Today’s VA rates reflect the Federal Reserve’s pivot to a cutting cycle after a stretch of higher rates that began in 2022. The Fed is expected to reduce rates further in 2025, which could help further lower mortgage rates, including on VA loans.
VA loan eligibility requirements
To be eligible for a VA loan:
- You’re currently on active military duty or a veteran who was honorably discharged and met the minimum service requirements;
- You served at least 90 consecutive active days during wartime or at least 181 consecutive days of active service during peacetime; or
- You served for more than six years in the National Guard or Selective Reserve.
In addition, if your spouse died in the line of duty, you might qualify for a VA loan.If you meet these requirements, you’ll next need to obtain your certificate of eligibility (COE). You can request this online, by mail or through your VA mortgage lender.
Benefits of VA loans for service members
VA loans help eligible members of the armed forces more easily buy, build or renovate homes. Benefits include:
- No down payment
- No mortgage insurance
- Low credit score requirements
- Mortgage rates that are lower than other loan types
VA loans vs. conventional loans
Both a VA loan and a conventional loan provide home financing. VA loans don’t require a down payment; conventional loans require at least 3 percent down. With a conventional loan, however, you can buy a primary residence (the home you’ll live in), an investment property or a vacation home. The same doesn’t apply to VA loans, which can only be used to finance primary residences.
Here’s an example of the costs associated with a VA loan versus a 30-year fixed loan. Keep in mind interest rates are dependent on the market and the borrower's creditworthiness.
30-year fixed VA loan | 30-year fixed conventional loan | |
---|---|---|
Home price | $400,000 | $400,000 |
Down payment | 0% | 0% |
Loan amount | $400,000 | $380,000 |
Interest rate | 6.25% | 6.21% |
Monthly mortgage payment (principal and interest) | $2,340 | $2,330 |
Monthly mortgage insurance payment | 0% | $2,330 |
Total monthly mortgage payment (includes principal, interest and mortgage insurance) | $2,340 | $2,450 |
Total interest over life of loan | $462,301 | $458,745 |
Total mortgage insurance over life of loan | $0 | $15,884 |
Total over life of loan (includes principal, interest and mortgage insurance) | $842,301 | $854,629 |
If you qualify for both a conventional and VA loan, which should you choose?
Phil Crescenzo Jr.
Vice President, Southeast Division, Nation One Mortgage Corporation
The variables of each loan are everything in this equation. The benefits of a VA mortgage loan are significant in many ways, especially allowing 100-percent financing without PMI, whereas a conventional mortgage would require a 20 percent down payment to eliminate PMI. In the scenario where a veteran does want to put 20 percent down, the funding fees associated with VA loans can be costly. If a veteran has a service-connected disability, the funding fee is waived and the veteran is exempt. In those cases, credit score would play a major factor in this decision. Overall, VA loans will be much more flexible on credit scores and have fewer costs associated with credit when compared to a conventional loan.
How to get the best VA loan rate
When comparing VA loans to other types of mortgages, you might notice that some VA loan offers come with lower rates. Still, it’s important to put your credit and finances in the best possible position for the most attractive rates. Here are some tips:
- Check your credit score. While VA lenders aren’t as strict as other types of lenders, a score above 620 gives you the most options.
- Shop around. While all VA loans are backed by the VA, individual lenders offer mortgages. Rates can vary by half a point or more from one lender to the next.
- Check out lender reviews. Some VA lenders have stellar reputations for customer service — but others not so much. You can learn more about individual lenders on Bankrate's review hub.
VA loan FAQ
Additional VA loan resources
- VA loan guides: Everything you need to know about VA loans, all in one place
- Best VA loan lenders: Bankrate’s top picks when shopping for a VA loan
- VA loan calculator: Estimate your monthly payments, interest and more
Meet our Bankrate experts
Written by: Jeff Ostrowski, Principal Reporter, Mortgages
I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.
Edited by: Suzanne De Vita, Senior Editor, Home Lending
I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.
Read more from Suzanne De Vita
Reviewed by: Greg McBride, CFA, Chief Financial Analyst, Bankrate
Greg McBride is a CFA charterholder with more than a quarter-century of experience in personal finance, including consumer lending prior to coming to Bankrate. Through Bankrate.com's Money Makeover series, he helped consumers plan for retirement, manage debt and develop appropriate investment allocations. He is an accomplished public speaker, has served as a Wall Street Journal Expert Panelist and served on boards in the credit counseling industry for more than a decade and the funding board of the Rose Foundation’s Consumer Financial Education Fund.
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