VA Loan Rates

December 8, 2016 03:02 PM Eastern

Refinance rates now in Ashburn, VA [Change this]

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    Home Price (Purchase)
    When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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    Home Value (Refinance)
    This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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    Down Payment
    The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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    Credit Score
    Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.
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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

Understanding Your VA Loan Rates

VA loans offer some of the best, most competitive loan rates available today. To qualify for a VA loan, you must be a current or former American service member or an eligible surviving spouse. Our VA loan rate table shows you current VA loan rates offered by our top-rated VA lenders.

VA loan rates are typically lower than rates offered on conventional or FHA mortgages, regardless of the applicant's credit score. However, veterans with good to excellent credit scores can get an even better interest rate than those with poor credit scores. To improve your credit, pay all of your bills on time, keep your credit card balances low, and take care of any discrepancies or old inquiries on your credit report. You can view your credit score for free on LendingTree.

Other factors that could affect your VA loan rate include your debt-to-income ratio, the duration of your loan (15-year loans tend to yield better rates than 30-year loans), and, of course, current conditions of the market.

To see how different rates will affect your monthly payment and the total amount you will pay in interest, use our VA Loan Calculator when getting quotes.