As of December 22, 2024, VA loan rates continue to provide competitive financing options for eligible veterans, active-duty service members, and their families. With the 30-year fixed VA purchase rate at 6.125% and the VA refinance rate at 6.250%, borrowers can still access below-average rates compared to conventional mortgages. Here’s a comprehensive breakdown of current VA mortgage rates, factors influencing them, and tips for locking in the best rates.
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Today’s VA Mortgage Rates
VA loan rates fluctuate daily based on market trends. Below are the current rates for various VA loan types:
| VA Loan Type | Interest Rate | APR | Points |
|---|---|---|---|
| 30-Year Fixed VA Purchase | 6.125% | 6.575% | 1.688 ($4,979.60) |
| 15-Year Fixed VA Purchase | 5.990% | 6.755% | 1.813 ($5,348.35) |
| 20-Year Fixed VA Purchase | 6.125% | 6.722% | 1.688 ($4,979.60) |
| 30-Year Fixed VA Jumbo Purchase | 6.625% | 6.976% | 0.5 ($3,832.76) |
| 30-Year VA Cash-Out Refinance | 6.750% | 7.080% | 0.25 ($737.50) |
| 30-Year Streamline (IRRRL) Refinance | 6.250% | 6.556% | 1.75 ($5,162.50) |
For a detailed breakdown of assumptions and costs associated with these rates, visit your lender’s website or consult a VA loan specialist.
What Influences VA Loan Rates?
Several factors determine VA loan rates, ranging from market conditions to individual borrower profiles.
Key Factors Affecting Rates:
- Credit Score: Higher scores generally secure better rates.
- Debt-to-Income Ratio (DTI): A lower DTI signals financial stability.
- Loan Type: Rates vary between purchase, cash-out refinance, and IRRRL loans.
- Global Market Conditions: Inflation, employment rates, and Federal Reserve decisions indirectly impact VA mortgage rates.
The Federal Reserve and VA Loan Rates
The Federal Reserve recently lowered its federal funds rate by 25 basis points to a range of 4.25%–4.50%. While this influences short-term borrowing costs, VA mortgage rates are more closely tied to long-term bond yields, like the 10-year Treasury note.
Mortgage rates respond to broader economic factors, meaning a Fed rate cut doesn’t guarantee an immediate drop in VA loan rates. Instead, it may influence long-term trends and investor behavior, which could gradually impact rates over time.
VA Refinance Options and Rates
Refinancing allows VA borrowers to take advantage of lower rates or tap into their home equity. Current VA refinance rates are:
| VA Refinance Type | Interest Rate | APR | Points |
|---|---|---|---|
| 30-Year VA Cash-Out Refinance | 6.750% | 7.080% | 0.25 ($737.50) |
| 30-Year Streamline (IRRRL) Refinance | 6.250% | 6.556% | 1.75 ($5,162.50) |
The Streamline IRRRL refinance is particularly attractive for those looking to reduce their rate without extensive documentation.
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Understanding APR and Discount Points
- APR (Annual Percentage Rate): This reflects the total cost of borrowing, including interest rates and fees. APR helps borrowers compare offers across lenders.
- Discount Points: Paying points upfront can lower your interest rate over the loan’s term. This is ideal for borrowers planning to stay in their home long-term.
How to Lock in Your VA Loan Rate
Locking in your interest rate ensures stability amidst daily fluctuations. A typical rate lock lasts between 30–60 days and requires a signed purchase agreement. Factors such as the loan type and market trends can influence lock timing.
Why Choose Veterans United?
Veterans United simplifies the VA loan process by offering transparent quotes and personalized service. Unlike some lenders, there are no hidden costs or locking fees. With specialists ready to guide you, Veterans United ensures you secure a competitive rate that aligns with your financial goals.
Start Your VA Loan Journey Today
If you’re ready to explore your VA loan options, speak with a Veterans United home loan specialist at 1-800-884-5560 or start your quote online. Whether purchasing a new home or refinancing an existing one, your military service has earned you access to these benefits—don’t miss the opportunity to take full advantage.
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