va mortgage rates: what to expect and how to compare

What sets VA rates apart

Backed by the Department of Veterans Affairs, VA loans often carry lower interest than many conventional options, and no monthly PMI. Lenders, not the VA, set pricing, so offers vary. Your credit score, loan term, and whether you buy or refinance all influence the final note rate and APR. Expect a one-time funding fee, though exemptions exist for some borrowers.

Key factors that move rates

Market forces like inflation, Treasury yields, and Federal Reserve policy push va mortgage rates up or down. Points, lender credits, and your debt-to-income ratio also matter. Shorter terms usually price lower, while cash-out refis may price higher.

• Compare at least three lenders and request identical loan scenarios.
• Check both rate and APR; review total cash to close and credits.
• Consider buying discount points only if the break-even fits your timeline.
• Improve credit, lower debts, and document stable income before locking.
• Ask about an IRRRL for streamlined refinancing if rates drop later.

Time your lock, read disclosures carefully, and coordinate closing to avoid extensions that could raise costs.