VA Loan Rates
The Department of Veterans Affairs (VA) doesn't set interest rates. Your lender determines the rate on your VA loan based on your unique financial situation.
However, because the federal government backs VA home loans, lenders are able to offer interest rates lower than conventional loan programs.
What Determines My Rate?
There are several factors that determine your interest rate including:
Credit Score - the higher your credit scores, the lower your rate.
Loan Type - rates may vary for purchase, refinance, and IRRRL programs
Loan Term - rates are normally lower for 15 year mortgages than 30 year mortgages
Loan Size - interest rates will be different for a loan of $200,000 than that of $300,000
Property Type - single family homes may have a different rate than multi-family homes
You also have the option of prepaying interest to lower your interest rate.
Last updated September 23, 2020