VA Loan Rates

Contrary to popular belief, VA Mortgage Loan interest rates are not set by the Department of Veterans Affairs. Each VA approved mortgage lender or broker sets their own interest rates for VA Loans, usually on a daily basis.  We publish VA Home Loan Rates from participating VA lenders on our website regularly. The VA Loan interest rates can and do change with changes in the financial markets just like conventional loan interest rates do.

The VA Loan Rate Benefit

Interest rates are a function of the risk associated with the loan. Generally, a loan with no down payment is considered riskier and has a higher interest rate. However, since a VA Mortgage Loan is guaranteed by the Department of Veterans Affairs, there is much less risk associated with the loan for lenders and therefore the VA Loan rates are usually better than conventional loan rates, even with no down payment!

Lower Rates = Lower Monthly Payment

A lower interest rate on a VA Loan will lower your monthly payment for a home being purchased or refinanced. If you are buying a home, a lower rate also means you can have a slightly larger loan amount. This means you can purchase a more expensive home with the same monthly payment you would have at a higher interest rate on a less expensive home.

The impact of the lower VA interest rate is greater the larger the loan amount is. With VA Loan amounts now going up to $729,000 in certain high cost areas, if you are an eligible Veteran it is in your best interest to explore the option of a VA Loan and get interest rate information from an approved VA Lender.