va mortgage rates today

VA Mortgages and Your Home Loan Interest Rate

What is VA mortgage loans? VA mortgages offer some major benefits over traditional home loans, such as no down payment needed on any loan, no restrictions on the type of property you can purchase with the loan, and interest rates are usually one-half to one-third lower than typical home loan rates. If you have served in the military and received a low score on your credit history, you may qualify for this type of mortgage. Here are several types of VA-approved mortgages for you to learn more about.

First, look at fixed-to-variable rate VA mortgages that do not require a primary residence. These mortgages are available for primary residences only. They have a variable interest rate and are only valid for six months after the date of purchase. You can capitalize on this type of financing option when it offers the lowest fixed mortgage rates today.

Next, use a VA-approved loan calculator to determine your potential savings through refinancing. To do this, simply plug your current VA mortgage rates into a VA loan calculator. The resulting figure will tell you the number of months it will take to pay off your mortgage. If you wish to shorten the term, simply change the number of months entered, but be sure to account for the additional cost of living when changing the number of months.

If you want to shorten your mortgage term, another option is to consider a home equity loan or a home improvement loan. VA mortgage rates for these types of loans are usually considerably lower than their traditional counterparts because they are backed by the full faith and credit of the U.S. government. A home equity loan allows you to borrow up to the appraised value of your property, while home improvement loans are typically used to finance the replacement costs of manufactured homes.

The fourth option you can use to determine your potential savings is to use a cash-out refinance calculator. This is also a convenient way to calculate your potential savings if you currently paying too much interest. Simply enter in your loan information, and an appraisal will determine how much your home is worth based on its current condition. This can help you quickly identify areas you can cut costs in order to save money on your mortgage rates today.

Finally, use a VA-approved debt-to-income ratio tool to see how much you could save if you refinance your existing VA mortgage. This includes a calculation of how much your monthly payments would be if you were to refinance using the interest-only or repayment-to-tie loans that are available under private mortgage insurance. This tool is especially helpful if you have a high interest rate due to your high debt-to-income ratio. If your ratio is too high, the private mortgage insurance companies may decline your application for a VA home loan.

Private mortgage insurance companies will also look to your credit rating to determine your eligibility for any possible VA-approved loan interest rate reduction. Your FICO score is often used as the primary basis for deciding whether you will qualify or not for any type of federal loan or home loan rates reduction. For this reason, it is imperative that you know your credit rating before shopping for a VA home loan rate reduction. Failing to do so will leave you disappointed should you find out at the last minute that you are not qualified for any of the VA home loan rates reductions. Therefore, it is imperative that you understand your credit rating and review it with a professional once you know where you stand. Doing this early will make it easy to identify and correct any errors should they surface later.

Although it is true that your credit score can influence the cost of your monthly VA home loan rates premiums, it is also worth keeping in mind that your interest rates will remain the same until you are found eligible for a VA refinancing plan. This is important to remember because in some cases you may find that the interest rate on your existing loans is higher than what you were paying before. Should you discover that this is the case, simply contact your mortgage lender and see if you can have the interest rate on one of your loans reduced. In most cases, most mortgage lenders will be willing to work with you to ensure that you are happy with your new interest rate.