There are many different options when it comes to VA rates, whether you are getting a purchase or refinance loan. The right loan officer who understands your individual situation can make all the difference and help you get the information you need to make the right decision. What will work best for you? A 30- or 15-year fixed rate or an ARM rate? We can help you find out.


VA ARM Refinance Rates

The VA adjustable rate mortgage (ARM) or Hybrid loan is a popular option for veterans who are looking for a way to increase their monthly savings with one of the lowest interest rates currently available. It is often a good idea to plan for this kind of refinancing, because studies have shown that homeowners, on average, stay in a single mortgage between four and five years. Most owners will sell or refinance long before they will pay off a 30-year fixed loan.

When you take advantage of these lower refinance rates you can lower your monthly payments, take advantage of the security of a VA guaranteed loan, and even apply the money you saved to pay down any high-interest debt you may have. There is no pre-payment penalty, and you can get one of the lowest rates in the marketplace.


Understanding VA Rates

Rates on VA loans can change often, just like a conventional loan. This fluctuation makes it hard to say exactly how much better these loans are than any others, but in most cases these rates tend to be lower than most. The VA does not control the interest rates and cannot say exactly what they will be at any given time. The rates are controlled by private investors who buy and sell mortgage bonds.

It is possible that your APR will be higher than your actual rate because what you see reflected on the APR shows the cost of the credit as a yearly rate. Also, the APR includes other costs such as the origination fee, loan discount points, pre-paid interest and mortgage insurance. It is a useful number, though, because it lets you compare the total cost of financing your loan among various lenders.

You can lock your interest rate when you have a contract on a property or, in the case of a refinance, when all your paperwork has been returned to your loan officer for verification. It doesn’t cost anything to lock, unless you want to lock the rate for more than 60 days (when a small fee may be applied). If you do not lock in the rate, it is known as a floating rate and it can be pulled up or down depending on the market. If your loan officer believes that rates may drop in the next few days, they may recommend that you let it float for a while before locking something in.

If you’re ready to learn more about the current interest rates and what your own options are, contact us today or request a free quote.

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