Best VA Mortgage Rates Today

02:45 AM February 18, 2019

Since VA mortgage rates are backed by the federal government, different lenders can offer competitive low interest rates. The eligible veterans will typically find that the rates are lower for a VA Home Loan than a traditional home mortgage.

Current Mortgage VA Rates

  • Credit score – A mortgage specialist can work with anyone who obtains a low credit score. The higher the credit score, the better chance the home buyer will obtain a lower rate. The specialists will talk to you about ways to have certain items removed from your report in order to increase your score. Current mortgage VA rates can change with your credit score.
  • Debt-to-income ratio – This is the amount of debt the homeowner has accrued compared to the amount of income they bring in each month. Current mortgage VA rates are affected by your personal debt to income ratio.
  • Loan duration – This typically can be set as a 15- or 30-year loan period.
  • Current market conditions – Economic conditions will help you determine whether it is a good or bad time to invest in a new home. It is wise to buy a home during lower housing valuations so as to increase the value of your property over the years.

VA Loans and APR

Annual Percentage Rate (APR) can factor into the following items-

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  • Closing cost fees
  • Discount points
  • Origination fees
  • Interest rate
  • Other fees and expenses accrued during the process

With a VA Loan, veterans can become qualified for a home without having to spend any amount as a down payment. There are also no private mortgage insurance costs. The federal government backs all VA loans. This allows veterans to obtain more equity in your house, and saves a significant amount of money during the life of the mortgage. Current mortgage VA rates change based on the specific program being used.

Basic Allowance For Housing

This is a benefit offered to veterans where the basic allowance for housing is able to serve as income. Veterans can use some of their BAH for their monthly mortgage costs. This number can vary depending on their geographic location, number of dependents held, and your annual salary.

VA Mortgage Rates Current

When home buyers pay off their home loans before the term of the loan is up they receive a pre-payment penalty due removing potential interest revenues from lenders. Veterans, however, can pay off their home loans at any given time without being given a pre-payment penalty. Current mortgage VA rates fluctuate, so make sure you are looking at current information.

VA Refinancing

Military homeowners can receive cash back on their VA refinance loans. This amount can be utilized to pay off any debts or make home improvements. Two of the best options for VA refinance are:

VA Streamline (IRRRL) Refinance

This is a great option for veterans with existing VA loans that are trying to obtain lower interest rates. They are not required to obtain appraisals and are given small out-of-pocket costs. They can also opt to transfer the closing costs into the balance of the loan.

VA Funding Fee

This is an upfront fee that is attached to every purchase and refinance loan. The proceeds of this fee are sent to The Department of Veterans Affairs to cover losses of any home loans that may have defaulted. Homeowners that receive any compensation for a service-related disability and qualified surviving spouses are also exempt from the service fee.

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First-Time Home Buyers

Purchasing a first home can be both exciting and overwhelming at times. With the VA Calculations Examplesit will give veterans accurate results as to the amount of monthly mortgage payments they can afford. After calculating down payment amounts, if any, along with other important information, the calculation will give veterans a starting point in their home search process.

Cash-Out Refinance

This is an option for veterans to take out some of their home’s equity to pay for any debts, emergencies, or even home improvements.

VA lenders will often look for credit scores that are 620 or higher. Closing costs cannot be rolled into the loan for cash out refinances. Homeowners in Texas can encounter restrictions regarding cash-out refinance loans. Current mortgage VA rates may change after a cash-out refinance.

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Ways To Use Your Cash Back:

As a rule of thumb, there aren’t any restrictions in terms of ways to spend the money received from a cash-out refinance. Some of the most popular areas where this money is invested includes:

  • Emergency Situations – this can involve healthcare costs such as monthly medications or treatments.
  • College Tuition – Each year tuition for colleges increases; the cash-out refinance can be of benefit in this arena.
  • Home Improvements – This can be helpful to increase a home’s value which later can give a veteran a better return on their initial investment. Most home buyers will look for upgrades in a home such as upgraded flooring, counters, etc. within the home when deciding on a home purchase.
  • Paying down other debts – Whether you have other loan debts or credit card debt, the cash-out refinance can help veterans become debt-free.

Veterans should always be on the lookout for special deals found on various advertisements such as weekly mailers and certain websites. These cools can be deceptive, often times including hidden terms that can prove to be a costly expense. Make sure you read the fine print on anything you agree to.

Whether veterans are applying for a conventional loan, a USDA loan, or an FHA loan, the VA cash-out refinance is still available to all loan types. This process allows veterans the ability to pay out their loans over a longer period of time in order to receive a lower interest rate.

If you’re a veteran and in the market for a new home or a home refinance, there are many options available to you. Some of the current mortgage VA rates were sitting at around 4.83% as of October  2018. This statistic is significantly lower than the average 5.03% for conventional borrowers.

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