Interest rates for VA home loans may be feeling the pinch, but don’t worry: there is a way to lower your rates. This article shares three ways to lower your VA home loan interest rate.
VA Home Loan Interest Rates
VA home loans have low interest rates and favorable rates. Interest rates are based on the buying power of the U.S. Dollar, so they will vary depending on current exchange rates. In addition to that, VA loans are typically 3% lower than a conventional loan because it’s backed by the federal government. To qualify for a VA home loan, the borrower must be at least 100% service-connected disabled or meet certain financial requirements.
As of March 1, 2019 the VA home loan interest rate is 3.0 percent. This is an increase from the previous 2.7 percent.
Three Ways to Lower Your VA Home Loan Interest Rate
Most VA home loans have a fixed interest rate, meaning that it stays the same over the life of the loan. There are a few ways to lower your interest rate. One way is to make minor payments on your loan every month. Another way is to refinance your loan during its term. This will save you money because you won’t need to pay an origination fee in addition to your reduced interest rate.
There are three ways to lower your VA home loan interest rate: switch lenders, prepay a VA loan, or refinance your VA home loan for a lower rate.
What to Consider When Choosing Your VA Home Loan Provide
There are a number of factors to keep in mind when choosing a VA home loan. Those who live in rural areas will have different housing options than those who live in the city. If you’re considering a down payment, the amount can range from 0% to 20% – it all depends on what your credit score is and what kind of loan you’re looking for.
There are many benefits of VA home loans, but they come with a big price tag. There are some factors that you should consider before signing up for a VA loan, such as if your credit score is high enough to qualify, how much you can afford to spend on your mortgage each month, and the length of time it will take for the loan process to be completed.