Current VA Loan Rates

VA Mortgage Guide Series

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What Are Today’s VA Mortgage Rates?

On Friday, February 26, 2021 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year VA mortgage rate is 3.010% with an APR of 3.310%. The average 30-year VA mortgage refinance rate is 3.040% with an APR of 3.290%.

Current VA Mortgage Rates

ProductInterest RateAPR
30-Year Fixed Rate3.170%3.330%
30-Year FHA Rate2.930%3.780%
30-Year VA Rate3.040%3.290%
30-Year Fixed Jumbo Rate3.180%3.250%
20-Year Fixed Rate3.110%3.310%
15-Year Fixed Rate2.560%2.760%
15-Year Fixed Jumbo Rate2.590%2.640%
10-Year Fixed Rate2.560%2.750%
5/1 ARM Rate3.030%4.060%
5/1 ARM Jumbo Rate2.990%3.950%
7/1 ARM Rate2.980%3.870%
7/1 ARM Jumbo Rate3.120%3.840%
10/1 ARM Rate3.190%3.970%
ProductInterest RateAPR
30-Year Fixed Rate3.150%3.370%
30-Year FHA Rate3.010%3.850%
30-Year VA Rate3.010%3.310%
30-Year Fixed Jumbo Rate3.180%3.280%
20-Year Fixed Rate3.030%3.250%
15-Year Fixed Rate2.480%2.770%
15-Year Fixed Jumbo Rate2.500%2.570%
10-Year Fixed Rate2.460%2.690%
5/1 ARM Rate2.970%4.010%
5/1 ARM Jumbo Rate2.950%3.880%
7/1 ARM Rate2.920%3.810%
7/1 ARM Jumbo Rate3.050%3.750%
10/1 ARM Rate3.020%3.900%

Rates as of Friday, February 26, 2021

What Is a VA Loan?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. A VA loan has several advantages over other types of mortgages, including competitive interest rates, no private mortgage insurance (PMI) requirement, and the option for financing a home with no down payment

VA purchase loans are only available to borrowers with qualifying military service who are purchasing a primary residence. In addition to purchase loans, there are also VA-backed loans for refinancing your existing mortgage and direct VA loans for Native American Veterans.

Who Qualifies for a VA Loan?

The main requirement to qualify for a VA loan is military service or you must be a surviving spouse of a veteran. The amount of time you need to serve in the military to qualify varies depending on when you served. But, if you’re on active duty, you only need 90 continuous days before you’re eligible for a VA loan.

Like other government-secured loans, a VA mortgage is typically easier to qualify for than a conventional loan. While each lender has specific credit score requirements, the VA doesn’t have an official minimum credit score requirement. If you have a blemish on your credit report, like a foreclosure or bankruptcy, a VA loan can be easier to qualify for. You may be eligible for a new VA mortgage in as little as one or two years after a bankruptcy, depending on the type of bankruptcy. With a conventional mortgage, the waiting period is at least twice as long.

How Do I Compare VA Loans and Other Mortgage Rates?

There are a few key differences between VA loans and other mortgages. Unlike most mortgages, VA loans don’t require private mortgage insurance even if the borrower has less than 20% equity in the property. PMI can cost anywhere from 0.5% to over 2% annually, so avoiding PMI can be a significant savings.

VA loans also have no minimum down payment requirement, so you can finance 100% of the home purchase. The minimum down payment for an Federal Housing Administration (FHA) loan is 3.5% and for conventional mortgages it can be as little as 3%, although it can be much higher.

However, in lieu of PMI or a down payment, VA loans have an upfront funding fee which is typically 1.4%-3.6% of the loan amount. The VA mortgage funding fee can be rolled into your loan and wounded or disabled service members may qualify for a funding fee waiver.

When to Consider a VA Loan

If you meet the military service requirement to qualify for a VA loan, it can be an excellent option. But depending on your personal financial situation you may find that even if you’re eligible for a VA loan, it’s not the best deal for you.

Pros to a VA Loan

Compared to conventional home loans, a VA loan typically has less strict qualification standards. So you’re likely to have an easier time qualifying with a lower credit score or higher debt-to-income ratio compared to other types of mortgages.

VA loans also usually have lower interest rates than comparable conventional loans and never require PMI. A VA mortgage may require you to pay less out of pocket to purchase a home. You can finance 100% of the home’s purchase price and the VA limits certain closing costs. For example, loan origination fees are capped at 1% of the loan amount. 

Cons to a VA Loan

The biggest extra expense associated with a VA loan is the initial funding fee. If you don’t qualify for a funding fee waiver, it can be a big consideration. The funding fee is based on the amount of your down payment and whether or not you’ve taken out a VA loan before. While the funding fee can be as little as 0.5% for certain VA refinance loans, it caps out at 3.6% for repeat borrowers who have a down payment of less than 5%.

If you have the ability to put 20% down on your home purchase with a conventional loan, you can waive the PMI requirement and avoid the funding fee at the same time. This negates some of the benefit of a VA loan and because you’re borrowing less you’ll have smaller monthly payments and pay less in interest.

VA loans also have more rigorous appraisal standards than conventional mortgages. In a hot real estate market, sellers are likely to have multiple offers to choose from. So the extra hurdle of having to navigate a VA mortgage appraisal could be a deal breaker because you can’t waive the appraisal contingency on a VA loan. 

How to Find Personalized VA Loan Rates?

The Department of Veterans Affairs doesn’t set interest rates for VA-backed mortgages. You have to compare mortgage lenders to find the best personalized VA loan rates.

The interest rates you can qualify for are based on your credit score, income, debt-to-income ratio, and other factors. However, because the VA guarantees the loan you can expect a VA mortgage rate to be lower than other mortgages with similar terms.

Up next in the VA Mortgage Guide series