What Are VA Loan Rates Today?

Who has the best VA loan rates? Compare VA lenders.

Animated interest rate graphicVeterans and military members who qualify for a VA loan may find that VA mortgage interest rates are often lower than those on conventional mortgages. This is because the VA guarantees the loan, giving lenders increased confidence in the borrower's ability to repay. Additionally, VA home loans often provide lower interest rates than conventional mortgages, making them a cost-effective option for veterans and military personnel.

The Department of Veterans Affairs does not set interest rates on VA loans (VA). Your lender will set the interest rate on your VA loan based on your specific financial situation.

What Factors Affect Mortgage Rates?

Numerous variables affect VA loan rates, including the following:

Credit assessment
Various Types of Loans (purchase, IRRRL, cash-out, jumbo, etc.)
The loan will be in force for a certain amount of time (15 or 30 years) depending on market conditions at the time.

Due to the inherent risk involved with lending, a great credit score nearly always results in reduced interest rates. Even if your credit history is less than great, the VA Guarantee may still qualify you for a cheaper interest rate.

Who determines the VA loan rates?

Private lenders, such as mortgage companies and financial organizations, set the interest rates on VA loans. While the Department of Veterans Affairs (VA) does not regulate loan rates, it does guarantee a portion of each loan in the case of default.

How do VA loan rates compare to those for other forms of loans?

On average, VA loan rates are cheaper than FHA and other lender rates. Because the VA guarantees a percentage of each loan, VA loan rates are often lower than commercial loan rates.

How are VA loan interest rates calculated?

Interest rates on VA loans are determined by a multitude of variables. Many of these elements are uncontrollable market dynamics, such as inflation, employment growth, and the secondary mortgage market.

Apart from market factors, your VA loan rate is decided by the following:

Credit ratings for mortgages
Previously repaid loans
Duration of the loan (15 or 30-year)
Type of loan (purchase, IRRRL, cash-out, jumbo, etc.)
How often do rates fluctuate?
Rates on VA loans fluctuate frequently—sometimes several times each day.
Are VA refinancing interest rates different than VA buy interest rates?

Rates on VA refinancing loans are often higher than rates on VA purchase loans. VA refinancing rates may be affected by the kind of loan, the borrower's credit score, the loan-to-value ratio, and other variables.

How is the Annual Percentage Rate Calculated? (APR)

Lenders often publish the APR rate alongside the advertised interest rate. Typically, the APR rate is more than the nominal interest rate. The Truth in Lending Act (TILA) was enacted by Congress in 1968 to protect borrowers from predatory lending practices. TILA required lenders to disclose the annual percentage rate on loans in plain language. Prior to the enactment of this regulation, some lenders were evasive about the expenses of loan.

TILA was enacted to safeguard consumers and make it simpler for borrowers to accurately compare lenders' interest rate, terms and fees.

APR may take the following factors into account:

  • Rate of interest
  • Fees and expenses associated with origination
  • Fees charged by the closing agency
  • Points for discounts
  • Additional fees may apply depending on the nature of the transaction.

What are discount points in the context of a VA loan?

Borrowers may purchase discount points to reduce their interest rate. When you buy discount points, you are effectively paying interest up front in exchange for a cheaper interest rate during the loan's term.

In general, points are more favorable for borrowers who want to own the house for an extended length of time. Your loan officer can assist you in determining the break-even threshold for acquiring discount points, as well as determining if points make sense in your particular scenario.

How can you lock in the interest rate on your VA loan?

Interest rate lock graphicThe interest rate lock period is another issue that affects the VA interest rate.

A rate lock secures an interest rate for a certain period of time, often between 30 and 60 days. Rate locks are critical to the mortgage process, since mortgage rates can vary on a daily basis. When requested by the borrower, the lender locks in the interest rate for an agreed upon time period. The borrower will receive the requested interest rate provided the loan settles within the stated time period.

A buyer must be under contract to qualify for a rate lock. Once that is accomplished, the timetable will vary based on a variety of variables, including the kind of loan and the broader economic condition.

Spinning question markFrequently Asked Questions (FAQs)

Q. Are VA interest rates lower than conventional?
A. Due to the fact that VA home loans are guaranteed by both the federal government and the Veterans Administration, interest rates on VA house loans are often lower than those on conventional mortgages. As a result, the likelihood of a default is less.

Q. Can closing costs be rolled into a VA loan?
A. Closing costs cannot be rolled into the VA purchase loan. The refinance programs can include closing costs.

Q. Can I get a million dollar VA loan?
A. Maybe. Do you have sufficient income and a good credit score?

Q. Can I get a VA loan for a sum more than the purchase price?
A. Yes. Nevertheless, there is no maximum VA loan amount; nevertheless, a VA loan may not be for more than a property's assessed value or the purchase price plus the VA financing fee and, if appropriate, energy-efficient upgrades, but not both.

Q. Can I sell my home if I have a Veterans Administration loan?
A. In a word, yes. As a general rule, if your home is guaranteed by the Veterans Administration, there are no time constraints on how long you must live there before selling it (VA).
Aside from that, VA loans do not have prepayment penalties (a fee charged if you pay off your mortgage early), so there is no need to be worried about that if you are thinking about selling your house.

Q. Can two veterans buy a home together?
A. Yes. If both the military borrower and the other borrower are jointly and severally liable for the mortgage and jointly own the house, the loan is deemed a joint loan. The VA loan benefit is available to active-duty military service members, veterans, and their qualified spouses.

Q. Can you do a jumbo VA loan?
A. Yes.

Q. Do VA loan rates vary by lender?
A. Yes. The Veteran's Administration guarantees the VA loan and requires lenders to follow the VA guidelines to obtain the backing on the VA home loan. Lenders are free to establish an acceptable interest rate.

Q. Does the credit score affect the VA loan interest rate?
A.  Your credit score may have an impact on the interest rate that you are given on a VA loan. When you have a lower credit score, VA lenders may be more likely to give you a higher interest rate. In a similar vein, a better credit score may assist you in obtaining a cheaper interest rate. Because VA loans are guaranteed by the Department of Veterans Affairs, interest rates on VA loans are often lower than those on conventional loans.

Q. Does VA do 15 year loans?
A. Yes

Q. Does the VA have jumbo loans?
A. VA jumbo loans allow you to acquire a larger loan amount while still enjoying many of the same perks as a typical VA loan, such as the opportunity to have no down payment if your credit score is good enough.
Some lenders will go as high as 2 million dollars for qualified VA buyers.

Q. What is a VA interest rate reduction loan?
A. The Interest rate reduction loan is a simple and fast way to refinance a VA mortgage. The irrrl must reduce the interest rate.


In conclusion, obtaining a VA loan may be a great option for current and former military members. The current interest rate is low, and the process is simple. If you are interested in obtaining a VA loan, be sure to contact your local lender for more information.