VA Loan Rates as of November 4th, 2024
Loan Type | Interest Rate | APR | Discount Points | Monthly Payment (for $200,000 loan) |
---|---|---|---|---|
30-Year Fixed VA Purchase | 5.990% | 6.459% | 1.9380 | $1,175.53 |
15-Year Fixed VA Purchase | 5.375% | 6.126% | 1.8130 | $1,634.96 |
20-Year Fixed VA Purchase | 5.990% | 6.614% | 1.9380 | $1,438.54 |
30-Year Fixed VA Refinance | 6.125% | 6.440% | — | — |
30-Year Fixed VA Jumbo Purchase | 6.625% | 6.952% | — | — |
30-Year Fixed VA Cash-Out Refinance | 6.990% | 7.312% | — | — |
Date: November 4, 2024
Note: Rates are based on a borrower with a 720 credit score and may vary based on credit profile and other factors.
Check Rates with Multiple VA Lenders in Our Network
As of today, VA loan rates are a critical factor for veterans and active-duty service members aiming to purchase or refinance a home.
These rates vary based on current market conditions, economic factors, and borrower qualifications.
In this article, we’ll cover today’s VA loan rates, analyze recent trends, and offer practical tips to help veterans make informed decisions.
Understanding Today’s VA Loan Rates
VA loan rates fluctuate daily, influenced by economic factors like inflation, Federal Reserve policies, and bond market performance.
Today’s Average VA Loan Rates:
- 30-Year Fixed VA Purchase: 5.990% (APR 6.459%)
- 15-Year Fixed VA Purchase: 5.375% (APR 6.126%)
- 30-Year Fixed VA Refinance: 6.125% (APR 6.440%)
- VA Cash-Out Refinance: 6.990% (APR 7.312%)
Loan Type | Interest Rate | APR |
---|---|---|
30-Year Fixed VA Purchase | 5.990% | 6.459% |
15-Year Fixed VA Purchase | 5.375% | 6.126% |
30-Year Fixed VA Refinance | 6.125% | 6.440% |
VA Cash-Out Refinance | 6.990% | 7.312% |
Note: Rates are based on a borrower with a 720 credit score and may vary based on credit profile and other factors.
Factors Impacting VA Loan Rates Today
1. Federal Reserve Policies
The Federal Reserve’s stance on interest rates is one of the primary drivers behind fluctuations in VA loan rates. While the Fed’s rates directly impact short-term loans, they also indirectly influence long-term rates, including mortgage rates.
2. Economic Indicators
Economic factors such as inflation and unemployment impact market sentiment, which in turn affects mortgage rates. Higher inflation often leads to higher mortgage rates as lenders try to maintain returns in an inflationary environment.
3. Bond Market Performance
VA loan rates are closely tied to the performance of long-term bonds, particularly the 10-year Treasury bond. When demand for Treasury bonds rises, yields fall, often leading to lower VA loan rates.
4. Housing Market Demand
Housing demand and real estate trends impact VA loan rates. High demand often results in lenders adjusting rates to balance their loan portfolio.
Today’s VA Loan Rate Trends: Is Now the Right Time to Buy?
Today’s VA loan rates reflect an upward trend due to economic uncertainty and inflation concerns. Here’s a breakdown of recent trends:
- Last Month: VA rates averaged around 5.9% for a 30-year loan, showing a steady climb to today’s rate of 6.125%.
- Three Months Ago: Rates hovered around 5.5%, indicating a gradual increase due to inflation concerns.
- Year-on-Year Comparison: VA loan rates were approximately 4.0% a year ago, making today’s rates significantly higher.
Time Period | Average 30-Year VA Rate |
---|---|
Today | 6.125% |
1 Month Ago | 5.9% |
3 Months Ago | 5.5% |
1 Year Ago | 4.0% |
VA Loan Rate Options: Fixed vs. Adjustable Rates
VA loans are available with both fixed and adjustable rates. Understanding the pros and cons of each option can help veterans choose the right type of loan.
- Fixed-Rate VA Loans:
- Benefit: Stability in payments over the loan term.
- Drawback: Higher initial rates compared to adjustable-rate loans.
- Ideal For: Buyers who plan to stay in their home long-term.
- Adjustable-Rate VA Loans (ARMs):
- Benefit: Lower initial rate, which adjusts over time based on market conditions.
- Drawback: Payments may increase significantly after the fixed-rate period ends.
- Ideal For: Buyers who plan to sell or refinance within a few years.
Loan Type | Best For | Pros | Cons |
---|---|---|---|
Fixed-Rate VA Loan | Long-term stability | Stable payments | Higher initial rate |
Adjustable-Rate VA Loan | Short-term ownership/refinance | Lower initial rate | Variable payments |
Credit Requirements for VA Loan Rate Qualification
Lenders typically look for a credit score of 620 or higher to offer competitive VA loan rates. However, the VA itself does not set a minimum credit score.
Improving Your VA Loan Rate with Good Credit
- 620 and Above: Qualifies for competitive rates.
- Below 620: May lead to higher interest rates or additional lender conditions.
Tips for Securing the Best VA Loan Rates Today
- Shop Around: Not all lenders offer the same rates. Comparing lenders can reveal significant savings.
- Check for Rate Discounts: Some lenders offer discounts for setting up auto-pay or using their banking services.
- Consider Rate Locks: Locking in today’s rate can protect borrowers from future rate hikes, especially in a rising rate environment.
Today’s VA Loan Rate Comparison with Conventional Loans
While VA loans typically offer lower rates than conventional loans, today’s higher rates narrow the gap between the two.
Loan Type | Interest Rate |
---|---|
30-Year Fixed VA Loan | 6.125% |
30-Year Fixed Conventional Loan | 6.5% |
Benefits of VA Loans Over Conventional Loans
- No Down Payment: VA loans typically require zero down payment, a significant advantage over conventional loans.
- No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans don’t require PMI, saving borrowers additional costs.
When to Lock in Your VA Loan Rate
Given today’s high rates, many borrowers are considering rate locks to secure their interest rates. Here’s when to consider locking your rate:
- If Rates Are Rising: Locking a rate today can prevent higher costs if rates continue to climb.
- If You’re Close to Closing: Locking in within 30 days of closing can provide financial certainty and peace of mind.
Frequently Asked Questions (FAQs)
Are VA loan rates lower than conventional loan rates?
Yes, VA loan rates are generally lower than conventional loan rates, making them an attractive option for Veterans.
How does the Federal Reserve affect VA loan rates?
The Fed’s policies indirectly impact VA loan rates by influencing overall interest rate trends in the economy.
Can I get a lower VA loan rate with a higher credit score?
Yes, higher credit scores typically qualify for lower rates as they indicate a lower lending risk.
Should I choose a fixed or adjustable VA loan rate?
Fixed rates offer stability, while adjustable rates start lower and adjust based on market conditions.
Is it worth refinancing a VA loan at today’s rates?
If current rates are lower than your original rate, refinancing could reduce your monthly payments.
What’s the current VA loan rate for a 30-year fixed loan?
Today’s rate for a 30-year fixed VA loan averages around 6.125%.
Can I lock my VA loan rate today?
Yes, most lenders offer rate locks to secure today’s rate, usually for 30, 60, or 90 days.
Are there extra fees for VA loans?
VA loans require a funding fee, but there is no requirement for private mortgage insurance (PMI).
Conclusion: Is Now the Right Time to Get a VA Loan?
Today’s VA loan rates are higher than they were last year, but they remain competitive compared to other mortgage options.
Veterans should carefully consider their financial plans, shop around for the best rates, and decide whether a rate lock is appropriate for their situation.
With the benefits of no down payment and no PMI, VA loans continue to be one of the most cost-effective paths to homeownership for Veterans.
VA Loan Eligibility Criteria
To be eligible for a VA loan, applicants must satisfy the Department of Veterans Affairs’ service and eligibility requirements.
- Veterans: Veterans who have completed the required active-duty service and were discharged honorably or under conditions other than dishonorable may qualify.
- Active-duty service members: Those currently serving on active duty can apply.
- National Guard and Reserve members: Eligible if they have completed six years of service or at least 90 days of active-duty service during wartime.
- Surviving spouses: Spouses of service members who died in the line of duty or due to a service-related injury may also be eligible for VA loan benefits.
Service Time Requirements Include:
- 90 consecutive days of active duty during wartime
- 181 consecutive days of active duty during peacetime
- Six years of service in the National Guard or Reserves, or at least 90 days of active-duty service under Title 32 orders (with at least 30 consecutive days served)
VA Loan Eligibility Calculator
Who are VA Loans For?
How VA Loans Work?
How to Qualify?
- Served at least 90 consecutive days during wartime or 181 days during peacetime.
- VA Certificate of Eligibility
- No down payment required.
- Minimum 620 credit score
- Debt-to-income of 45% or lower