One of the strongest benefits of VA loans are the low VA loan rates that are available, even to those with less than perfect credit. These low VA loan rates can save homeowners hundreds of dollars a month and thousands of dollars over the life of the VA loan!
Two Types of VA loan Rates:
VA Loan Rates: Fixed
Your rate will never increase.
Fixed VA loan rates will give you a stability and peace of mind.
Use an IRRRL refinance to lower your VA loan rate.
VA loan Rates: Adjustable
These rates are usually lower than VA loan rates that are fixed.
Adjustable rate mortgages are fixed for three or five years then begin adjusting.
Consider an adjustable rate if you plan on selling your home within three or five years.
Why are VA Loan Rates Lower?
Banks offer higher rates to individuals with less-than-perfect credit or who are borrowing a high percentage of their property’s value. They do this in order to help mitigate their risk. Click here to learn about VA loan credit and income eligiblity.
Because repayment of VA home loans is guaranteed by the VA, the lender’s risk is minimal when issuing a VA loan. Therefore, VA home loan lenders are able to charge lower VA loan rates and offer more favorable loan terms than other types of home loan lenders.
Visit our Mortgage Backed Securities Program page to learn why rates will soon be changing and why now is the time to secure your VA loan!
