You will not find current VA home loan interest rate averages anywhere on the website for the Department of Veterans Affairs. Interest rates for mortgage loans guaranteed by the VA are set by each lender offering this type of home loan.
Similar Interest Rates
Mortgage lenders do not deviate from each other greatly when it comes to the interest rates offered to borrowers with similar credit scores and other factors. On the other hand, some mortgage lenders do offer better interest rates than others, and even if the interest rate is better by a fraction of a percentage, this can make a huge difference overall with the total amount of money the borrower will pay over the life of the mortgage loan. This can be especially true for borrowers utilizing VA loans who do not make a down payment and who roll the VA funding fee costs into the loan.
It is certainly worth it to research the current VA home loan interest rate averages before obtaining a VA home loan. Find out what the average interest rate is for this type of loan and then attempt to find a lender willing to approve a mortgage loan with a lower interest rate than average. You will have an easier time obtaining a lower interest rate for a VA loan if you fall into these categories:
- You have an excellent credit score.
- You will make a substantial down payment.
- You have a solid employment history, either with the military or after discharge.
- You have additional assets beyond the money you will contribute toward closing costs.
Remember: Just because the VA approves you for a mortgage guarantee, it does not mean that a lender is required to give you a mortgage loan. You must still get approved for a mortgage based on your creditworthiness and other deciding factors. This is where the interest rate may vary, particularly if you have credit issues or a less than solid employment history.
The more of a credit risk you present to the lender, the higher the interest rate will be for the mortgage loan regardless of the VA guarantee. Average interest rates for VA loans only present a broad picture of what lenders are charging, but may not be representative of the interest rate you wind up receiving.
Find Current VA Home Loan Interest Rate Averages
The VA does not advertise mortgage loan interest rate averages because the VA does not endorse any lenders in particular and does not set the interest rates. There are several websites that provide VA mortgage loan interest rate averages including, but not limited to:
- VALoans.com: This is not an official government website.
- Mortgage 101: Interest rate averages for a variety of mortgage products are available through this website.
- BankRate: Compare interest rates from several VA lenders on this website.
If you are interested in the interest rates for one particular lender providing VA home loans, check the official website for that lender. Keep in mind that interest rates for any type of mortgage -VA loans included- can change frequently and without warning. An interest rate average can be a good guideline, but does not guarantee a specific interest rate for your mortgage loan.
Purchase vs Refinance
The average VA interest rates for purchases and refinances are typically the same, although interest rates can be slightly higher when a refinance includes cash-out. When researching interest rates for VA loans, pay attention to the terms of the loans to make sure the information you receive pertains to your situation.