Compare today's VA mortgage rates

How do I find current VA mortgage rates?

NerdWallet’s mortgage rate tool can help you find competitive, customized VA mortgage rates. In the “Refine results” section, enter a few details, and in moments you’ll get a rate quote tailored to meet your needs, without having to provide any personal information. From there, you can start the process of getting approved for your VA home loan. It’s that easy.

What is a good VA mortgage rate?

Many factors influence the mortgage rate you’re offered, including the economy, your financial details and the lender. The best way to find out if you’re being quoted a good VA mortgage rate is to apply with multiple lenders. When you make lenders compete, you can compare loan offers and determine which has the best combination of rate and fees.

With a Loan Estimate from each lender compared side-by-side, you’ll be able to see which lender is giving you a good mortgage rate combined with the lowest origination fees.

Do VA home loans have better mortgage rates?

On average, VA home loans tend to have better mortgage rates than conventional and FHA loans. The rate you’re offered will depend on your credit score and other personal financial details, as well as the lender.

» MORE: See VA loans vs. conventional loans

Will VA loan rates go up or down?

Average mortgage rates fluctuate daily and are influenced by the economy’s overall rate of growth, the inflation rate and the health of the job market. Unpredictable events can affect all of those factors. See NerdWallet’s mortgage interest rates forecast to get our take.

How much does a VA loan cost?

Your VA mortgage rate will affect the overall cost of borrowing. A higher rate will mean a higher monthly mortgage payment and more interest paid over the life of the loan.

VA loans include other costs, too. Most borrowers will pay a VA funding fee. The fee varies depending on several factors, including whether the loan is for a home purchase or mortgage refinance, the down payment amount and whether this is your first VA loan.

For purchase loans with a zero-down payment, the VA funding fee is 2.15% of the loan amount if this is your first VA loan and you close the loan on or after April 7, 2023. It can be lower for some refinances and can be waived for disabled veterans and some surviving spouses. Active-duty service members who have received a Purple Heart are exempt from the funding fee. You’ll also be responsible for other closing costs, such as appraisals and inspections.

Who can take advantage of VA loan rates?

Mortgage borrowers who take out a VA loan are eligible. A VA loan is a mortgage that requires no down payment, no mortgage insurance and is available to active-duty military, veterans, certain military spouses, reservists and National Guard members. The VA loan program, backed by the U.S. Department of Veterans Affairs, aims to help service members and veterans enjoy the benefits of homeownership.

Pros and cons of VA loans

VA loans are often a good deal for borrowers who qualify — especially if they want to buy without making a down payment. Here are some benefits and one drawback to VA loans:

Pros

Buy with zero down: Qualified VA borrowers may buy without making a down payment.

No mortgage insurance: Even with a 0% down payment, VA borrowers don’t pay mortgage insurance. Instead, they pay a one-time funding fee.

Lenient loan qualifying standards: The VA has no minimum credit score requirement, although lenders often require credit scores of 620 or higher. When assessing affordability, the VA looks at how much money is left over after the borrower’s monthly expenses.

Cons

Funding fee: Although VA loans don’t have mortgage insurance, they do have a funding fee that’s paid at closing. The funding fee varies from 1.25% to 3.3%, depending on size of down payment and whether it’s your first or a subsequent VA loan.

How are VA mortgage rates set?

At a high level, mortgage rates are determined by economic forces that influence the bond market. You can’t do anything about that, but it’s worth knowing: Bad economic or global political worries can move mortgage rates lower. Good news can push rates higher.

What you can control are the amount of your down payment and your credit score. Lenders fine-tune their base interest rate on the risk they perceive to be taking with an individual loan.

So their base mortgage rate, computed with a profit margin aligned with the bond market, is adjusted higher or lower for each loan they offer. Higher mortgage rates for higher risk; lower rates for less perceived risk.

So the bigger your down payment and the higher your credit score, generally the lower your mortgage rate.

» MORE: Get your credit score for free

What’s the difference between a VA interest rate and APR?

The interest rate is the percentage that the lender charges for borrowing the money. The APR, or annual percentage rate, is supposed to reflect a more accurate cost of borrowing. The APR calculation includes fees and discount points, along with the interest rate.

APR is a tool used to compare loan offers, even if they have different interest rates, fees and discount points.

A major component of APR is mortgage insurance — a policy that protects the lender from losing money if you default on the mortgage. You, the borrower, pay for it.

Lenders usually require mortgage insurance on loans with less than 20% down payment (in a home purchase) or less than 20% equity (in a refinance).

» MORE: What is APR and how does it affect your mortgage?

Learn more about VA loans:

• FHA vs. VA Loan: Which One Is Right For You?

• VA loan calculator

• Best VA mortgage lenders