VA Mortgage Loan Rates: Compare Current Offers Today | LendingTree (2024)

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Current VA mortgage and refinance rates

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan type, loan program, and loan term. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

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Written byRene Bermudez| Edited byCrissinda Ponder | Updated February 14, 2024

• Improve your credit score. Pull your credit reports and correct any errors that may be affecting your score. If you still need a boost, taking the time to repair your credit can help you qualify for a lower rate.

  Learn more about how to improve your credit score.

• Comparison shop. Get a loan estimate from three to five lenders, and be sure to compare APRs as well as interest rates.

  Learn more about our picks for the best VA loan lenders.

• Buy discount points. Also called mortgage points, discount points allow you to purchase a lower interest rate. It’s not mandatory, but if you can afford to buy a lower rate, you’ll save money over the long term.
• Pick a shorter loan term. Most of us see the 30-year mortgage as the standard, but it’s also worth considering a shorter 10- or 15-year mortgage term. If you can afford the higher payments, you’ll save thousands in interest charges over the life of the loan.

  Learn more about how to choose between a 15-year and 30-year mortgage.

• Choose a variable-rate loan. If you’re truly on the hunt for rock-bottom rates, adjustable-rate mortgages (ARMs) are an option that can help you get a VA loan at the lowest possible interest rate. That said, you need to understand how ARM rates work, and be prepared for the full spectrum of possible rates you could face when the loan starts adjusting.

There are six factors that determine what your VA loan rate will be:

1. Your credit score. The higher your credit score, typically the lower your rate.
2. Your loan amount. Lenders may charge a higher interest rate for loans that are unusually small or large.
3. Your down payment. This isn’t as much of a factor since a VA loan down payment isn’t usually required — however, a higher down payment may result in a lower interest rate.
4. Your mortgage term. Your term is how many years it takes to repay your loan. You’ll usually pay a lower rate for a shorter term (like a 15-year fixed-rate mortgage versus a 30-year term), but you’ll have a higher monthly payment amount.
5. Your home’s location. Mortgage rates vary from city to city and state to state.
6. The financial markets. VA loan rates change daily, based on a variety of economic factors. That’s why it’s important to gather all your rate quotes on the same day.

• Purchase loans. The highly popular 30-year fixed-rate mortgage is a common choice for borrowers with VA loans.
• Purchase ARMs. Adjustable-rate mortgages (ARMs) allow you to enter a loan at a very competitive interest rate for a fixed number of years. However, when your “teaser” period ends, the rate becomes adjustable based on market conditions and could become much more expensive.
• Streamline refinances. Also called interest rate reduction refinance loans (IRRRLs), streamline refinances are an option for borrowers who want to replace an existing VA loan with a new one that better suits their financial situation.
• Cash-out refinances. If you have a conventional loan, the only way to refinance into a VA loan is through a VA cash-out refinance. This program allows you to pay off your old loan with a new VA loan and take out a lump sum of cash all at the same time.
• Construction loans. VA construction loans typically come with lower interest rates than other conventional construction loans, and you’ll have the added benefit of delaying your loan payoff until construction has concluded.
• Renovation loans. Also called a VA rehab loan, this VA loan type allows you to fund the purchase of a fixer-upper home and the renovations all in one loan.
• Farm loans. You can use a VA farm loan to buy a farm with the caveat that it has to be purchased as a residential property — not a business — and the land has to already have a residential dwelling on it.
• Manufactured home loans. A VA loan can be used to buy a manufactured home, or to buy both a manufactured home and a plot of land to put it on. You can also refinance a home you already own while purchasing a new plot of land to move it to. Just be prepared to put down at least 5%, as this type of VA loan does require a down payment even if you have full VA entitlement.