VA Interest Rate Trends: January 2026 (What’s Moving Rates + Tools)
In January 2026, VA mortgage pricing has generally eased slightly versus late 2025 in many borrower scenarios, with day-to-day movement staying relatively tight compared with the bigger swings borrowers saw in prior years. For 30-year fixed VA purchase loans, many lenders are quoting within a mid‑5% to low‑6% band depending on credit, points, and lock terms. IRRRL refinance pricing can be meaningfully different from purchase and cash-out offers, so it’s important to compare the correct loan type.
January 2026 Snapshot (Planning)
- 30-year fixed VA purchase quotes often cluster in a narrow band for well-qualified borrowers, with price differences driven mostly by points and lender fees.
- IRRRL pricing can look more favorable than cash-out pricing because it’s a VA-to-VA streamline refinance with different risk characteristics.
- 15-year fixed VA purchase options can price lower than 30-year, but payments rise because the term is shorter.
What’s Driving Moves This Month
- Inflation data and expectations about Federal Reserve policy are still the “big levers” behind bond yields, which feed into mortgage pricing.
- The 10-year Treasury is a common benchmark that mortgage rate commentary tracks; daily changes can nudge rate sheets.
- Even when “market rates” look stable, lender pricing varies—so shopping multiple VA lenders still matters.
What Veterans Should Do Now
- Standardize comparisons: same loan type, term, lock period, and points assumptions before comparing any two offers.
- Use a “points vs payment” break-even check to confirm whether buying down the rate actually makes sense for your timeline.
- If you have an existing VA loan, run an IRRRL savings estimate to see whether the payment reduction clears your lender’s net benefit test.
VA Advantage Still Shows Up
- VA loans often compete well versus conventional, especially because VA loans do not require monthly mortgage insurance.
- Actual pricing still depends on the lender, your credit profile, and how you structure closing costs and points.
- Use written Loan Estimates and compare total cost—not rate alone—to avoid “low rate / high fee” traps.
January 2026 VA Loan Rate Snapshot (As Of )
This table is a planning snapshot to help you frame January 2026 pricing. It is not a locked quote or a commitment to lend. To compare lenders, request written Loan Estimates using the same assumptions (term, lock period, points/credits).
| VA Loan Type | Typical Quote Band You May See | Why It Lands There | Notes For January 2026 |
|---|---|---|---|
| 30-Year Fixed VA (Purchase) | ~5.4% to ~6.4% (varies by points/fees) | Base market pricing + lender margins + credit/points choices | Some lenders advertise “4% range” offers with points; validate with a Loan Estimate. |
| 30-Year VA IRRRL (Streamline) | Often lower than cash-out; varies widely by lender | Streamline rules can reduce documentation; pricing still depends on overlays | Use the IRRRL Savings Tool below to check monthly impact and break-even. |
| 15-Year Fixed VA (Purchase) | Often slightly below 30-year pricing | Shorter term + different investor pricing | Payment increases because you repay principal faster. |
How To Use This Snapshot Correctly
- Rates are a mix of market pricing, lender margin, and points—so “rate only” comparisons are misleading.
- Always compare the same loan type (purchase vs IRRRL vs cash-out) and the same lock period.
- If a quote looks dramatically lower, check whether it assumes discount points or higher lender fees.
Helpful next steps: review VA loan options and rules and compare costs using the CFPB Loan Estimate guide.
Trend & Payment Impact Tool (January 2026)
Use this tool to translate rate movement into dollars. Enter a “Week 1” rate and a “Today” rate (or swap in your lender quotes), and the tool will estimate payment change and five-year interest difference for your loan amount and term.
1. Enter Your Scenario
Limitations
This tool estimates principal-and-interest only and does not include taxes, insurance, HOA dues, or the VA funding fee. It’s designed to quantify the size of rate moves so you can plan and shop intelligently.
2. Your Trend Summary
Enter your scenario to see the impact.
Interpreting The Output
- If the payment change is small, points and lender fees may matter more than rate when choosing between offers.
- If your rate improved, confirm the same lock period and points assumptions before celebrating the “win.”
- If your rate worsened, shop lenders—pricing differences on the same day are common with VA loans.
Points Break-Even Calculator (Should You Buy Down The Rate?)
Some January 2026 offers advertise lower rates “with points.” This calculator estimates how long it takes for monthly savings to repay the upfront cost, using your loan amount, rate change, and points.
1. Enter Rates And Points
2. Break-Even Results
Enter your inputs to see break-even and net benefit.
Practical Rule
- If you will sell or refinance before break-even, points often don’t pay back.
- If the “low rate” comes with high origination fees, compare total cash-to-close and APR—not rate alone.
- When in doubt, ask for a true 0-point quote and a points quote using the same lock period.
IRRRL Refinance Savings Estimator (Quick Check)
If you already have a VA loan, a streamline refinance (IRRRL) may reduce your principal-and-interest payment in the right scenario. This estimator compares your current rate to a new rate and checks break-even against estimated closing costs.
1. Enter Current Loan Details
2. Estimated Savings
Enter your scenario to estimate savings and break-even.
What To Validate Before You Refinance
- Confirm the “net tangible benefit” standard with your lender (rate/payment stability rules vary by scenario).
- Compare total costs: rate, APR, financed fees, and how long you expect to keep the new loan.
- Lock timing matters—rates can change daily until you lock.
VA Rate Trends (January 2026) FAQs
VA guarantees part of the loan but does not set your interest rate. Individual lenders set VA rate sheets based on market pricing, credit risk, and their own margins.
Are VA loan rates trending down in January 2026?
In many borrower scenarios, January 2026 pricing has looked slightly softer than late 2025, but daily movement remains modest. The best way to confirm your trend is to compare written quotes using the same loan type, lock period, and points assumptions.
Why do VA rates differ so much between lenders on the same day?
Lenders use different pricing models, margins, and “overlays” for risk. One lender may price aggressively to win volume while another adds cost for the same credit band or property type, which is why shopping multiple VA lenders can produce meaningful savings.
How does the 10-year Treasury affect mortgage rates?
Mortgage rate commentary often references the 10-year Treasury because yields reflect investor expectations and can influence mortgage-backed security pricing. It’s not a perfect one-to-one relationship, but larger yield moves can lead to rate sheet changes.
Can I get a VA rate in the 4% range in January 2026?
Some offers advertise very low rates, but they often require discount points or specific scenarios. Always ask for a 0-point quote and a points quote, then use the Points Break-Even Calculator to see whether paying upfront costs makes sense for your timeline.
Are IRRRL rates usually lower than VA purchase rates?
They can be, but it depends on lender pricing and your profile. IRRRLs are streamline VA-to-VA refinances, which may price favorably versus cash-out refinances. Use the IRRRL Savings Estimator to measure payment impact and break-even.
Is APR more important than the note rate?
Both matter. The note rate drives your monthly principal-and-interest payment, while APR rolls many costs into a comparable annual figure. When one offer has points and another has lender credits, APR helps you compare the true cost structure.
What’s the fastest way to shop VA rates without confusion?
Ask each lender for a Loan Estimate using identical assumptions: loan amount, term, occupancy, lock period, and points/credits. Then compare APR, cash-to-close, and your projected “time in the loan,” not rate alone.
Do VA loans require mortgage insurance?
VA loans do not require monthly private mortgage insurance. Many borrowers pay a one-time VA funding fee depending on eligibility and exemption status. That’s why the “total monthly payment” comparison versus conventional is often favorable for VA borrowers.
When should I lock my VA rate?
Many borrowers lock after they are under contract and their documentation is stable. Your lock needs to cover the closing timeline, and extensions can cost money. Confirm lock expiration and extension terms in writing before relying on a quote.
What’s the single biggest mistake with “rate trend” content?
The biggest mistake is treating headline averages as personal quotes. Your real rate depends on your scenario, points, fees, credit band, and lender overlays. Use tools like the Payment Impact Tool and confirm with written Loan Estimates.
References Used
Levi Rodgers is the Founder of VA Loan Network, a leading resource for Veteran homebuyer education. A Retired Green Beret and Broker-Owner of LRG Realty in San Antonio, Levi leverages his military discipline and real-world real estate expertise to provide Veterans with expert loan advice, guidance, and trusted financial leadership.
