VA Loan Rates Today: Rates and Calculator

Published rate indices reflect lender rate-sheet information; they are not government rates, and a benchmark does not specify the note rate or APR any particular borrower will receive. [1] A today’s VA mortgage rates comparison should start with the same loan scenario and current written estimates.

The Department of Veterans Affairs does not prescribe VA mortgage rates. Private lenders price loans, and the Veteran and lender negotiate the rate and any discount points. VA’s guaranty can support competitive financing, but it does not promise the lowest available rate. [2][3] Borrowers considering a VA purchase loan should evaluate the complete transaction rather than a rate advertisement alone.

Lenders evaluate credit, loan structure, transaction costs and the requested rate-lock terms. VA itself has no programwide minimum credit score, although lenders may apply their own risk standards. See minimum credit score for a VA loan for qualification considerations and VA loan with bad credit for credit-history context. [10][16]

For unusual financing, review VA jumbo loan rates and VA cash-out refinance requirements rather than assuming an ordinary purchase quote applies. A low note rate with expensive points may not be a low-cost loan. [6][7][8][10][12]

The examples below show scheduled monthly principal and interest on hypothetical fully amortizing fixed-rate loans. They exclude property taxes, homeowners insurance, association dues, closing costs and any financed VA funding fee. The remaining debt and payment can differ when a fee is financed. [15][17]

For a hypothetical $400,000 loan on a 30-year term, 6.50% produces a principal-and-interest payment of approximately $2,528.27 per month, while 6.75% produces approximately $2,594.39. That is approximately $66.12 more per month, not necessarily the same as the change in interest alone because payments also amortize principal. [15][19] The VA home affordability calculator discussion should separately account for tax, insurance and debts.

The Consumer Financial Protection Bureau recommends requesting competing Loan Estimates with the same loan type and features. After a lender receives the six pieces of information that constitute a mortgage application, it generally must provide a Loan Estimate within three business days. The Loan Estimate does not guarantee a rate lock. [5][16] The VA Loan Estimate comparison tool process works best when each offer reflects matching loan amounts, terms and assumptions.

On page 3, the official “In 5 years” comparison provides total payments over five years and principal paid off. Subtract principal paid off from the total payments to obtain the CFPB’s five-year interest-and-fees comparison. That is different from simply adding 60 principal-and-interest installments to upfront fees, which counts principal repayment as a cost. Do not label a custom worksheet total as the CFPB’s official five-year borrowing cost. [4]

For complete comparison, verify financing of the VA funding fee, estimated title services, lender credits and total cash required. Ask each lender to explain differences in VA loan closing costs before choosing the lowest APR or lowest cash-to-close offer. [4][9]

One discount point costs 1% of the loan amount. On a $300,000 loan, one point is $3,000; 1.5 points costs $4,500. The rate reduction per point is not fixed across lenders or days. Points are listed on page 2, Section A of the Loan Estimate. [6]

A lender credit reduces the upfront closing amount and commonly comes with a higher note rate. Compare the same amount of points or credits with each lender. Borrowers considering VA seller-paid closing costs should also distinguish lender credits from seller-paid charges. [6][9]

A simple cash break-even illustration divides additional upfront points by the monthly payment savings for otherwise identical loan terms. This is not the statutory VA IRRRL 36-month fee-recoupment test, and it does not replace a comparison of amortization, taxes, opportunity cost or refinancing plans. [6][13][19]

VA-backed purchase loans do not require monthly PMI or MIP, while many conventional loans with a small down payment require private mortgage insurance. An eligible VA purchase loan may permit no down payment, subject to lender approval, entitlement and appraised value. These are program features, not proof that a specific VA quote has a lower total cost. [3][10] Borrowers can review VA vs conventional loan to compare complete payment and cost structures.

For a standard VA-backed purchase loan with less than 5% down, the published funding-fee schedule lists 2.15% for first use and 3.30% for subsequent use if the borrower is not exempt. Other down-payment brackets have different rates. VA identifies multiple exemption categories, including certain recipients or eligible beneficiaries of service-connected disability compensation. Exemption is not limited to everyone described generally as a “disabled Veteran.” [9]

Mortgage rates may move daily or faster. A rate lock generally preserves the stated rate through its expiration date if the borrower closes on time and the application remains consistent. Common lock periods include 30, 45 and 60 days, but the lender sets available options and any extension cost. The Loan Estimate shows whether the rate is locked and when the lock expires. [8][18]

Ask whether a shorter or longer lock changes pricing, what happens if closing is delayed, and whether a change to the credit score, loan amount or appraisal could change the locked offer. Review VA loan closing timeline and VA appraisal process when selecting a lock that covers the expected closing. [8]

During shopping, credit-scoring models generally group mortgage inquiries made within 14 to 45 days, depending on the model. This is not a promise of no score impact, and separate nonmortgage applications can behave differently. See how mortgage shopping affects credit for the distinction. [14]

An IRRRL generally refinances an existing VA-backed loan for a lower rate or more stable payment terms. A VA cash-out refinance may replace a VA or non-VA mortgage and can allow access to home equity, subject to lender and VA rules. Neither refinance is automatically approved, free, or guaranteed to lower the total cost. [11][12] Borrowers should separate VA IRRRL rates from VA cash-out refinance rates when requesting offers.

IRRRL Seasoning, Rate Reduction and Recoupment

For a fixed-rate VA loan refinanced into another fixed-rate loan, 38 U.S.C. § 3709 requires a note-rate reduction of at least 50 basis points. The statutory rule for a fixed-rate loan refinanced into an adjustable-rate loan is a reduction of at least 200 basis points, with additional conditions for discount points. An ARM-to-fixed transaction has its own applicable VA rules. Review the VA IRRRL requirements before assuming a lower payment alone qualifies. [13][11]

Under the same federal statute, the seasoning requirement is the later of six consecutive monthly payments and 210 days after the first payment due date. The applicable fee-recoupment rule requires specified borrower-incurred fees and expenses, excluding the statutory categories such as VA fees, taxes and escrowed amounts, to be recouped through lower regular monthly payments within 36 months of loan issuance. Financing allowable charges does not eliminate their economic cost. [13]

1. Mortgage News Daily: Daily Rate Index ↗
2. VA Pamphlet 26-7, Chapter 3: Interest Rates and Discount Points ↗
3. VA: Purchase Loan Benefits and Requirements ↗
4. CFPB: Compare and Negotiate Loan Estimates ↗
5. CFPB: Request and Review Multiple Loan Estimates ↗
6. CFPB: Discount Points and Lender Credits ↗
7. CFPB: Mortgage Interest Rate Versus APR ↗
8. CFPB: Mortgage Rate Locks ↗
9. VA: Funding Fee and Closing Costs ↗
10. VA: Loan Entitlement and Loan Limits ↗
11. VA: Interest Rate Reduction Refinance Loan ↗
12. VA: Cash-Out Refinance Loan ↗
13. 38 U.S.C. § 3709: Refinancing of Housing Loans ↗
14. CFPB: Credit Inquiry Shopping Windows ↗
15. CFPB: How Mortgage Payments Are Calculated ↗
16. CFPB: Review Your Loan Estimates ↗
17. CFPB: Principal And Interest Versus Total Monthly Payment ↗
18. CFPB: Loan Estimate Disclosure Requirements, Regulation Z § 1026.37 ↗
19. CFPB: How Mortgage Amortization Works ↗