va home loan rates explained for today’s borrowers

What sets VA rates apart

Because VA loans carry a federal guaranty, lenders often price them lower than comparable conventional mortgages. Still, your rate hinges on credit, debt-to-income, loan term, occupancy, and whether you pay discount points. Market forces matter too: inflation reports, Fed policy signals, and mortgage‑backed securities all nudge daily quotes. VA loans don’t require monthly PMI, which keeps the effective cost attractive even when headlines look high.

How to compare offers

Request quotes the same day with the same lock period and terms, then weigh rate versus APR. Clarify lender credits, total closing costs, and whether a temporary 2‑1 buydown or the IRRRL streamline refinance fits your plan. Shaving 0.25% can save about $40–$50 per $300,000 borrowed.

• Match loan amount, term, and lock length across lenders.
• Ask about points, credits, and third‑party fees.
• Confirm eligibility, COE, and any funding‑fee exemption.
• Calculate break‑even before paying points.
• Consider a float‑down option if available.

Timing and trends

Rates change intraday. Shop multiple lenders within a short window, get a written Loan Estimate, and lock once you have a contract or clear refinance target.