Today’s VA Home Loan Rates


Current VA Loan Rates

VA loan rates have been trending upward over the past few years, largely due to economic conditions and the fact that mortgage rates hit all-time lows several times in 2020 and 2021. After a period of extremely low rates, the Federal Reserve raised the Federal Funds rate in 2022. In the time since then, the Fed has enacted even more rate hikes in order to combat rapid inflation. 

While the rising VA mortgage rates aren’t ideal if you’re in the market to buy a home, it’s important to focus on long-term trends rather than comparing current VA mortgage rates to rates from two or three years ago. It’s also important to keep in mind that whether interest rates will continue to rise or drop is a matter of speculation — the months or years you may wait for rates to drop can be time spent building equity. Additionally, you always have the option to refinance in the future if you want to capitalize on lower VA mortgage rates.

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. VA loan rates are highly individualized and the specific rate you qualify for will depend on your credit score, the strength of your financial profile, and current economic conditions. 

VA Loan Interest Rate vs 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?

Let’s start by explaining what, exactly, VA home loan rates are. 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:

Because APR consists of all of these cost factors, APR is higher than the interest rate you’ll see when comparing them. In fact, 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.

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

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How Are VA Loan Rates Determined?

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. Rather, individual lenders determine VA home loan rates, which means your rate will vary depending on which lender you work with. 

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.

Some of the main variables that determine VA mortgage rates include: 

  • Market Factors: The most influential aspect of VA loan 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.
  • Loan Term: 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. However, since there are many factors that impact your VA home loan rate, this isn’t always the case.
  • Fixed vs Variable Rate: 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 there is even further interest rate variance between the subtypes.

What Determines My VA Mortgage Rate?

When it comes to your VA loan rate on an individual basis, it really comes down to your financial health, including things like your: 

  • Credit score 
  • Income
  • Debt-to-income (DTI) ratio 
  • Down payment amount 

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 550 FICO score to meet 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.

Are Purchase and 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.

How Do I Find the Best VA Loan Rates?

One of the primary considerations when you apply for a VA loan is interest rate. Lowering your interest rate can potentially save you thousands of dollars over the life of a loan. With that being said, here are some tips for finding the best VA loan rate:

  • Compare lenders: Different lenders offer different rates, so shop around to find the lowest VA loan rate. However, keep in mind that in some cases lenders offering the lowest VA mortgage rates may have more stringent qualification requirements, poor customer service, or rigid loan terms. Speak with various lenders to find one that best aligns with your home buying goals. 
  • Determine what type of loan you want: Whether you’re purchasing a home or refinancing will have a big impact on your VA loan rate. Research the different types of VA loans so that you know what you’re looking for when speaking with lenders. 
  • Look beyond interest rate: It’s important to remember that while interest rate is an important factor when getting a VA loan, it’s not the only thing to consider. When shopping around, make sure to look at lender reviews and consider how experienced they are in dealing with VA loans. Having a lender that works closely with you and is knowledgeable about VA loans can make a huge impact on the type of experience you have when applying for and managing your mortgage. Also keep in mind that you can always potentially refinance to a lower rate in the future. 

It’s hard to beat the home loan rates attached to VA mortgages. But, at the end of the day, if you’re focused on finding the best rate, you might look at mortgage options outside of VA loans as well. For example, you might compare first-time home buyer loans and VA loans or consider other government-backed financing programs, such as USDA loans.

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 the best 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 rates, we would be happy to assist you through the VA loan 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

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.

Stop speculating and find out what VA loan interest rate you qualify for. Submit an application online to get pre-approved for a VA loan or call us at 855.651.2871 to speak with one of our loan specialists. You can also download the Griffin Gold app to get personalized support from one of our mortgage professionals, compare your loan options, and access tools like our VA loan calculator.