Home Mortgage Preparation :: VA Loan Rates
VA Loan Rates:
Should You Go for Adjustable or Fixed VA Loan Rates?
VA loan rates will vary depending on whether you have chosen a fixed or adjustable rate. Fixed rates are just as they say, fixed. They will not fluctuate with the national average for home loan interest rates. Adjustable VA loan rates will rise and fall depending on the interest rates at the current time. If rates go up, your monthly payments will raise as well.
VA Loan Rates vs. Standard Loan Rates
VA loan rates are typically lower than standard loans by a considerable 2-3%. This affects the total amount a borrower will have to pay throughout the life of the loan.
Are There Different VA Loan Rates for Different Types of VA Loans?
Typically, a veteran will qualify for a VA loan to purchase a home. There are options of building a home and using a VA loan. Veterans can also use VA loans to make energy efficient qualified improvements. Veterans can apply for a VA loan refinance or the new VA Streamline Refinance, both of these loans offer reductions on the VA loan rates.
Credit history and score are main factors of what affect a VA loan rate. Some of the loans above will have significantly lower rates than a traditional HUD/FHA loan; however, the severity in difference is affected by past use of finances and payment of obligations on a timely manner.
Most VA loan rates fall between 30 year fixed loans with 0 points at a rate of 5.5% with an APR of about 5.610%. A 15-year VA loan with 0 points is 5.5% with an APR of 5.686%.
Why Should I Worry About the VA Loan Rates?
Essentially a loan rate is based on a percentage of the loan amount. This is the cost that a finance company is charging you to borrow money.
It is important to shop around and find the best VA loan rate and loan package. Most loans are drawn 15 to 30 years and that can be quite a burden if the VA loan has an adjustable rate.
Be sure to select VA loan rates and a package that is going to remain comfortable for the duration of your loan and avoid purchasing an initial financial burden with intent to refinance later. Refinances and other loans appear on your credit report and can affect your credit score.
All Articles for Home Mortgage Preparation
Learn great tips about how to safely obtain a home mortgage with
Your First Mortgage
Order Online
24 Hours a Day
7 Days a Week
365 Days a Year!
Copyright 2008
Home-Mortgage-Preparation.com :: VA Loan Rates