Today’s VA Home Loan Rates

     

While you can try to track down current VA loan rates and continue to check VA loan rates today in your search engine, there’s only so much variation that occurs, especially if you have a time limit between now and when you need to buy. There is no denying that 2020 and 2021 were record-low years for mortgage rates, but that is an anomaly based on the monetary policy during the pandemic, not something that’s easily predicted and planned for.

To learn more about VA loan rates, how they’re determined, and what the variances are, read this page from start to finish. To find the answer to a specific question, use the links below to navigate.

Current VA Loan Rates

As of the beginning of May 2023, mortgage rates are beginning to trend downward. Keeping in mind that mortgage rates hit all-time lows several times in 2020 and 2021, it’s more important to look at overall trends than VA loan rates for today.

Even though you can check current VA loan rates regularly on this page, this will only give you a general insight into the market, not necessarily the loan rate you’ll qualify for. Since VA loan rates are highly individualized, personal financial factors, among other interest rate aspects, will significantly impact the rate you qualify for.

Learn more about our VA loan rates and see what you qualify for today.


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How Are VA Loan Rates Determined & By Who?

There are a variety of financial aspects that are factored into determining VA interest rates. However, one thing to make clear is that the Department of Veteran Affairs does not set VA home loan rates, your lender does.

While individual mortgage lenders set VA interest rates, their decision to adjust VA home loan rates is usually dependent on the loan terms, the economy, supply and demand for mortgages, and individual financial factors.

Market Factors

The most influential aspect of interest rates is the market, which is impacted by factors such as job growth, national debt, and inflation. Interest rates, including those for VA loans, can fluctuate on a day-to-day basis due to the state of the economy.

Length of the Loan

Another factor that plays a role in VA home loan interest rates is the loan term, whether it’s a 30-year VA home loan or a 15-year VA home loan. Typically, shorter-term loans have lower interest rates, so 15-year VA loan rates would be lower than 30-year VA loan rates. However, since there are many factors that impact your VA home loan rate, this isn’t always the case.

Griffin Funding offers customized flexible terms to allow you to choose any term—from eight to 30 years—that fits your budget and allows you to potentially save thousands of dollars in interest. For example, let’s say that you refinanced two years ago at 2.25% and have 28 years left on your 30-year fixed loan. Rates have dropped enough for a refinance to benefit you but you don’t want to start all over again on a new 30-year term. In this case, you could just choose a 28-year fixed-rate loan.

Fixed vs. Variable Loan Rates

Mortgages can either be fixed-rate loans or adjustable-rate loans. A fixed-rate mortgage has a set interest rate that remains the same over the course of your loan (15 or 30 years). An adjustable-rate mortgage is one where the interest rate is set for a period of five or seven years and is then adjusted up or down based on the current market conditions.

Generally speaking, adjustable-rate mortgages have a slightly lower interest rate in many cases.

Loan Type

There are several different types of VA loans, which may impact your interest rate. For example, the rates between purchase loans and refinance loans typically vary, and then there is further interest rate variance between the subtypes.

What Determines My Rate?

When it comes to your VA loan rate on an individual basis, it really comes down to your financial health, including your credit score and income. This is because your credit and borrowing history, as well as your ability to make your loan payments, determines how much risk you present to the lender.

If you’re looking for a way you can get a better VA home loan interest rate in the near future, you should focus on improving your credit score. But even then, this process can take months or even longer—especially if you need to make a significant improvement in order to reach the next credit score range. While you only need to have a minimum 500 FICO score (which is in the poor or fair credit score range) as part of Griffin Funding’s VA loan requirements, you’ll likely be able to qualify for a lower rate if you can raise your credit score to a good or excellent rating.

If you have a longer timeline that you’re working with to purchase or refinance your home, you could focus on increasing your income. This could be by getting a promotion or creating a second source of income.

How Do I Find the Best VA Loan Rates?

The primary tactic that future borrowers employ when looking for the best VA loan rates is to compare different VA loan rate quotes from several lenders. However, this can be time-consuming and frustrating, given the nearly constant fluctuations of interest rates.

One of the easiest ways to find the best VA loan rates is to look into which lenders are known for offering competitive interest rates, like Griffin Funding.

Typically, VA loan rates are lower than other types of mortgages—a benefit that’s meant to reward veterans and current military members for their service.

Those with credit scores that are on the lower end of the spectrum typically do not fare well when it comes to qualifying for favorable terms with a conventional loan. In fact, they usually see much higher interest rates. While borrowers with lower credit scores would fare better with non-QM loans, VA home loans may still provide better interest rates. This, of course, only applies if you qualify for a VA home loan in the first place.

If you’re looking to purchase your first home, you may find yourself comparing a first-time-homebuyer loan vs. a VA loan. Generally, VA loans still have lower interest rates than first-time-buyer loans.

Another thing to consider when weighing your different loan options and their respective interest rates is the fact that there are restrictions on the condition of the home you can move into and VA occupancy rules you have to follow, so interest rates should not be the sole factor that you consider.

Are Purchase & Refinance Rates Different for VA Loans?

On the surface level, VA loan refinance rates may seem higher than purchase loan interest rates if you’re just comparing current VA loan rates across the board. However, the best way to look at them is by basing it off your current interest rate. You should also consider the goal of refinancing.

For example, if you’re looking to refinance your current VA home loan, a VA streamline refinance loan (also known as an interest rate reduction refinance loan or IRRRL) is going to give you a lower interest rate. On the other hand, a VA cash-out refinance loan is designed to free up the equity in your home by turning it into cash. In some cases, you may be able to get a lower interest rate, but not always.

What Is VA Loan Interest Rate & What Is APR?

When comparing the VA loan rates today, you may see that APR is higher than the standard interest rate. But why is that, and what is the difference between these rates?

First, let’s recap by answering, “what are VA loan rates?” VA home loan interest rates are solely the expression of how much interest you’re going to have to pay on your loan.

While APR (annual percentage rate) is also expressed as a percentage, it is very different from the interest rate. The APR on your home loan includes more than just the interest rate—it comprises the annual cost of the loan. This includes the other fees, such as closing costs, loan origination fees, broker fees, discount points, etc. Because APR consists of all of these cost factors, APR is higher than the interest rate you’ll see when comparing them.

APR may be a better way to compare the actual costs of different home loans because it gives you a comprehensive view of how much you’ll be paying on a yearly basis with that mortgage.

Is There a Time of Year When VA Rates Are Lower?

While there’s no standardized time of year that you can count on for VA loan rates, you may be able to save on your mortgage by waiting for the right time to buy a home. For example, you can save over the course of your loan by waiting until it’s a buyers’ market and house prices have gone down, which is usually Autumn and Winter, according to Nationwide.

You can also pay attention to forecasts for mortgage rates in order to get a better idea of when might be the best time to apply, but even then, that’s just speculation. There’s really no way to guarantee that you’ll strike when mortgage rates are going to be the lowest. Instead, the best strategy is to focus on your financial health and work with your lender to find the right home loan solution for you.

Where We Lend


If you want to apply for a VA home loan and take advantage of our competitive VA home loan interest rates, we would be happy to assist you through the process. Before you submit a loan application, keep in mind that we exclusively lend in specific states, including:

For a full list of all of the states that we are licensed to offer VA loans click here.

Still have questions? You can read up on everything you need to know about VA loans on our site or speak with one of our knowledgeable loan officers who can clarify interest rates and other loan terms for you.


Find Out What VA Loan Interest Rate You Qualify for

Stop speculating and find out what VA loan interest rate you qualify for. Submit an application online or call us at 855.651.2871 to speak with one of our loan specialists. At Griffin Funding, we work with you to help you find the best home loan option for your circumstances, so that you can get into the home of your dreams faster and cheaper.