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VA mortgage rates are typically some of the lowest available, helping those who qualify keep their monthly payments affordable. Check out our current VA mortgage rates and see if a VA mortgage makes sense for you.
What are VA mortgage rates today?
Like othermortgage rates, rates for VA loans have been trending down after spiking in October 2023.
Rates are still relatively high, but they should continue to fall in the coming months and years. The good news for VA borrowers is that VA mortgages still offer a significant discount compared to conventional mortgages. Average VA rates are currently around 70 basis points below average conventional rates.
In December, 30-year VA mortgage rates averaged around 5.71%, according to Zillow data. They've inched down even lower in recent weeks.
Compare current VA mortgage rates
Here's how today's VA rates stack up to other types of mortgages.
| Mortgage type | Average rate today |
This information has been provided by Zillow. See more mortgage rates on Zillow
Weekly mortgage rate trends
Use our mortgage rate graph to get an idea of how rates have changed throughout the past year. Note that these rates are for conventional mortgages, and VA mortgage rates are typically a bit lower than conventional rates.
How is my VA mortgage rate determined?
There are many factors that go into determining your mortgage rate, including both larger economic factors and individual factors.
The general range of VA rates available to consumers will depend in large part on current economic conditions and investor demand for mortgage-backed securities.
The exact rate you'll get will also be determined by your individual financial profile, including your credit score. The higher your score, the better the rate you'll be able to get.
Jennifer Beeston, senior vice president of mortgage lending at Guaranteed Rate, says that the lender you choose will also have a major impact on the rate you end up with.
How to get a good VA mortgage rate
According to Beeston, shopping around and getting rate quotes from multiple lenders is vital if you want to get the best rate available to you.
"I cannot stress enough that if you are a veteran you need to shop the lender on interest rate and lender fee," Beeston says. "We see huge differences in rate and fees based on the lender. The same buyer could be quoted 6.75% and $5,000 in lender fees by one lender and 5.4% with no lender fees by another on the exact same day for the same loan."
You can also improve your chances of getting a lower rate by improving your credit score or paying down debt to lower your debt-to-income ratio (DTI).
How to qualify for a VA loan
VA mortgages are unique in that they have two sets of eligibility requirements that borrowers must meet. As with other types of mortgages, VA mortgage lenders typically require borrowers to meet minimum credit requirements to qualify for a loan.
Though the Department of Veterans Affairs doesn't set a minimum credit score for borrowers, many lenders require VA mortgage borrowers to have a minimum credit score around 660. Some lenders may allow lower scores. You'll also typically need a DTI of 41% or less. VA mortgages don't require a down payment.
In addition to meeting your lender's credit standards, you'll also need to meet the VA's minimum service requirements. Those who are eligible include:
- Active-duty servicemembers who have served at least 90 consecutive days
- Veterans who served at least 90 days in wartime or 181 days in peacetime
- National Guard or Reserve members who has served for at least six years or 90 days of active-duty service
Some surviving spouses may also be eligible. The VA's website has more detailed information on minimum service requirements.
VA loan benefits and drawbacks
For those who qualify, VA mortgages are a great deal. Not only do they offer lower rates with no required down payment, but they also allow borrowers to avoid paying mortgage insurance.
For many low down payment loans, borrowers are required to pay a mortgage insurance premium, which insures the lender against the risk of a low down payment. VA mortgages don't require mortgage insurance, even if you put nothing down.
However, VA mortgages do come with a funding fee, which is equal to between 1.4% and 3.6% of the loan amount. Borrowers can pay this fee at closing or roll it into the loan amount.
Keep in mind that even if you put no money down and roll your funding fee into your loan, you'll still need to have some cash to pay for closing costs.
Another thing to consider is that a 0% down payment doesn't always make sense. While it can make getting into a home significantly easier, having a larger down payment can lower your monthly mortgage payment and prevent you from ending up underwater on your mortgage.
Beeston says that sometimes a conventional mortgage can offer a better deal if you're able to make a down payment above 20%, since you won't have to pay for private mortgage insurance and you'll avoid the funding fee that comes with a VA mortgage.
"The key is to work with a lender who does both and can walk you through the pros and cons of each for your unique situation," Beeston says.
Mortgage Calculator
Use our free mortgage calculator to determine what your monthly payment might look like based on your down payment, interest rate, and the price of the home.
Mortgage Calculator
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$1,161 Your estimated monthly payment
More details
Total paid
$418,177
Principal paid
$275,520
Interest paid
$42,657
Ways you can save:
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
VA loan frequently asked questions
Do VA home loans have lower interest rates?
Yes, VA mortgages have lower mortgage rates than fixed-rate conventional mortgages. They often even have lower rates than other types of government-backed mortgages, such as FHA mortgages.
What is a good VA interest rate?
Keeping an eye on current VA rate trends can help give you an idea of the range of rates lenders are generally offering. To get access to the best available rates, you'll need to have a strong financial profile, including a high credit score and a low DTI.
Who is the No. 1 VA lender?
In 2023, the largest VA lender by volume was Veterans United, according to the VA, originating almost $17.6 billion in VA mortgages.
Are all VA loans $0 down?
All VA loans allow no down payment, though you always have the ability to put money down if you want to.
In some situations, you may be required to put some money down. For example, if the home you want to buy appraises for less than the sales price, you'd need to bring some of your own money to the transaction to cover the difference.
What is the maximum amount you can borrow for a VA loan?
VA mortgages typically have no loan limit, meaning there's no limit to how large a VA mortgage can be. However, that doesn't mean you can borrow an infinite amount of money. Individual borrowers will only be able to borrow as much as a lender determines they can afford.
In certain cases, some VA borrowers will have a reduced entitlement, which means they will be subject to a loan limit. This can happen if you have a VA loan on another property and you're buying a second primary residence.
How do you lock in your VA loan interest rate?
A rate lock secures your interest rate so it won't change with fluctuations in the market. You have until five days before closing to lock your rate. When you're ready, you'll let your lender know you want to lock your rate. In general, you'll need to have a signed purchase agreement on a home to be eligible for a rate lock.
Mortgage Reporter
Molly Grace is a reporter at Insider. She covers mortgage rates, refinance rates, lender reviews, and homebuying articles for Personal Finance Insider. Before joining the Insider team, Molly was a blog writer for Rocket Companies, where she wrote educational articles about mortgages, homebuying, and homeownership. You can reach Molly at mgrace@businessinsider.com, or on Twitter @mollythegrace.
Jr Compliance Associate
Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City. Personal Finance Insider is Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate. He joined Insider in February 2022 as a fellow on the compliance team. Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends.
I'm an expert in the field of mortgages and real estate, with a deep understanding of the factors influencing mortgage rates, eligibility criteria, and the nuances of various mortgage types. My expertise is grounded in extensive research, industry knowledge, and practical experience in the financial domain.
Now, let's break down the concepts covered in the provided article about VA mortgage rates:
-
VA Mortgage Rates Today:
- VA mortgage rates are typically among the lowest available.
- Rates for VA loans have been trending down after a spike in October 2023.
- Despite being relatively high, they are expected to continue falling in the coming months.
- VA mortgages offer a significant discount compared to conventional mortgages, currently around 70 basis points below average conventional rates.
- As of December, 30-year VA mortgage rates averaged around 5.71%, according to Zillow data.
-
Determining VA Mortgage Rates:
- Factors include larger economic conditions and individual financial profiles.
- VA rates depend on current economic conditions and investor demand for mortgage-backed securities.
- Individual financial profiles, including credit scores, play a crucial role.
- The choice of lender can impact the final rate offered.
-
Getting a Good VA Mortgage Rate:
- Shopping around and obtaining rate quotes from multiple lenders is essential.
- The lender chosen can result in significant differences in rates and fees for the same loan.
-
Qualifying for a VA Loan:
- VA mortgages have two sets of eligibility requirements.
- Borrowers need to meet minimum credit requirements (around 660 credit score) and maintain a DTI of 41% or less.
- Minimum service requirements include specific criteria for active-duty servicemembers, veterans, National Guard or Reserve members, and some surviving spouses.
-
VA Loan Benefits and Drawbacks:
- VA mortgages offer lower rates with no required down payment and no mortgage insurance.
- A funding fee (1.4% to 3.6% of the loan amount) is applicable but can be paid at closing or rolled into the loan.
- While a 0% down payment is advantageous, it might not always be the best option based on individual circ*mstances.
-
Mortgage Calculator:
- The article provides a mortgage calculator to estimate monthly payments based on factors like down payment, interest rate, and home price.
- It highlights ways to save on interest charges, such as a higher down payment or lower interest rate.
-
VA Loan FAQs:
- Answers to common questions about VA loans, including interest rates, eligibility, down payments, loan limits, and rate locks.
- Veterans United was identified as the largest VA lender by volume in 2023.
-
Author Information:
- The article is authored by Molly Grace, a Mortgage Reporter, and Elias Shaya, a Jr Compliance Associate, both contributing to Personal Finance Insider.
This breakdown should provide a comprehensive understanding of the key concepts related to VA mortgage rates and the broader mortgage landscape. If you have any specific questions or need further clarification on any topic, feel free to ask.
