If you’re an active-duty service member or veteran shopping for a VA loan, one of the first questions you’re likely to ask is: What is my VA loan interest rate, and what will it cost to get that rate? At Millennial Home Loans, we can answer that question online 24/7 or over the phone without a credit pull, completing a loan application, or requiring your name, phone number, or email address.
VA loan interest rates are not set by the Department of Veterans Affairs. Individual mortgage lenders determine the interest rates, discount points, and other costs they offer. That means two lenders can offer the same borrower different interest rates—or even the same interest rate at very different costs.
That’s why comparing VA loans requires looking at more than the advertised interest rate. You should compare the interest rate and the lender costs or credits associated with that rate.
Can You Check VA Loan Pricing Without Completing a Loan Application?
Yes. Millennial Home Loans provides an online VA Loan Pricing Tool that allows eligible borrowers to view real-time VA loan pricing based on their individual loan scenario without completing a loan application or providing a phone number or email address.
To view your pricing, simply provide the type of VA loan you are considering, your estimated credit score, the property location, and your approximate loan amount. You can then review multiple interest rate options along with the points, lender credits, and fees associated with each option.
You can access the Millennial Home Loans VA Loan Pricing Tool here: VA Loan Pricing Tool.
How Can You Compare VA Loan Offers Side by Side?
Millennial Home Loans also provides a VA Loan Pricing Comparison Tool that allows you to compare multiple loan offers side by side. You can use it to compare our VA loan pricing with quotes from your credit union, your Realtor’s preferred lender, an online lender, or another mortgage company.
The comparison tool helps you organize the interest rate, points or lender credits, lender fees, and other important pricing information for each offer so you can make a more informed comparison.
Who Sets VA Loan Interest Rates?
The U.S. Department of Veterans Affairs does not set VA loan interest rates. Instead, individual mortgage lenders determine the interest rates, discount points, and other pricing they are willing to offer VA borrowers.
Because lenders establish their own pricing, VA loan interest rates and costs can vary from one lender to another. The VA recommends shopping around because private lenders may offer different interest rates and fees.
What Determines Your VA Loan Interest Rate?
Your VA loan interest rate and pricing depend on several factors. These can include the type of VA loan, your credit profile, the loan amount, the property location, current market conditions, and whether you choose to pay discount points or receive lender credits.
For an accurate VA loan pricing quote, we generally need four pieces of information: the type of VA loan, your estimated credit score, the property location, and the approximate loan amount.
The four pieces of information are:
- Loan type: VA home purchase, cash-out refinance, or Interest Rate Reduction Refinance Loan (IRRRL)
- Estimated credit score
- Property location
- Approximate loan amount
Why Can Two Lenders Quote Different VA Loan Rates and Costs?
VA loan pricing can vary from lender to lender because each lender establishes its own interest rates and pricing. One lender might offer a lower interest rate but charge discount points or higher lender fees, while another might offer a slightly higher rate with lower upfront costs or a lender credit.
For that reason, comparing only the interest rate can be misleading. To make a meaningful comparison, borrowers should look at both the interest rate and the cost or lender credit associated with obtaining that rate.
What Are Discount Points on a VA Loan?
Discount points are upfront fees a borrower can choose to pay in exchange for a lower interest rate. One discount point equals 1% of the loan amount. For example, one point on a $400,000 VA loan would cost $4,000.
Paying discount points may make sense when the upfront cost is justified by the interest savings over the period you expect to keep the loan. The lowest interest rate is not automatically the best financial choice if obtaining that rate requires paying substantial upfront costs.
What Are Lender Credits on a VA Loan?
Lender credits work in the opposite direction of discount points. With rate-based lender credits, a borrower accepts a higher interest rate in exchange for a lender credit that can offset eligible closing costs, reducing the amount of money needed at closing.
Whether it makes more sense to pay discount points, accept a lender credit, or choose a rate with little or no additional pricing adjustment depends on your financial goals, available cash, and how long you expect to keep the mortgage.
How Should You Compare VA Loan Offers?
When comparing VA loan offers, make sure you are comparing similar loan scenarios. Look at the interest rate, discount points or lender credits, lender fees, loan term, and estimated closing costs rather than focusing on the interest rate alone.
A useful comparison is to ask each lender for pricing at the same interest rate whenever possible. This makes it easier to see differences in lender costs or credits without the comparison being distorted by different interest rates.
Why Use Millennial Home Loans for VA Loan Pricing?
At Millennial Home Loans, our goal is to make VA loan pricing transparent and easy to compare. Rather than showing a single advertised rate, we provide multiple interest rate options along with the cost or lender credit associated with each option so you can evaluate which structure best fits your financial goals.
We encourage VA borrowers to compare our pricing with other lenders. An informed comparison can help you understand not only the interest rate being offered, but also what you are paying—or receiving as a lender credit—to obtain that rate.
Frequently Asked Questions About VA Loan Interest Rates
Does the Department of Veterans Affairs set VA loan interest rates?
No. The Department of Veterans Affairs does not set VA loan interest rates. Individual lenders establish the rates and pricing they offer, which is why VA loan rates and costs can vary between lenders.
Why do VA loan interest rates vary between lenders?
VA loan rates can vary because each lender establishes its own pricing and may have different costs, margins, and pricing adjustments. Even when two lenders offer the same interest rate, the points, lender credits, or fees associated with that rate may be different.
Does my credit score affect my VA loan interest rate?
Yes. Although the VA does not establish a minimum credit score for VA-guaranteed loans, individual lenders may have their own credit requirements, and your credit profile can affect the interest rate and pricing available to you.
Is the lowest VA loan interest rate always the best deal?
Not necessarily. A lower interest rate may require you to pay discount points or other upfront costs. When comparing VA loan offers, consider both the interest rate and the costs or lender credits associated with obtaining that rate.
What is one discount point on a VA loan?
One discount point equals 1% of the loan amount. For example, one point on a $400,000 VA loan costs $4,000. Paying discount points generally allows a borrower to obtain a lower interest rate.
Can I receive a lender credit on a VA loan?
Yes. A lender credit can reduce eligible closing costs in exchange for accepting a higher interest rate. Comparing the amount of the lender credit with the corresponding interest rate can help you evaluate whether that option makes sense for your situation.
Can I check VA loan rates without completing a loan application?
Yes. Millennial Home Loans provides an online VA Loan Pricing Tool that allows you to view personalized VA loan pricing without completing a loan application or providing your phone number or email address.
How can I get a VA interest rate quote without talking to a loan officer?
You can check personalized VA loan pricing online with Millennial Home Loans without completing a loan application or providing your phone number or email address. Simply provide the type of VA loan, your estimated credit score, the property location and approximate loan amount to view multiple VA interest rate and pricing options.
Check your VA loan pricing online.
Check Your VA Loan Pricing
If you’re purchasing a home with a VA loan, refinancing your current mortgage, or considering a VA Interest Rate Reduction Refinance Loan (IRRRL), you can check your personalized VA loan pricing online with Millennial Home Loans.
Our VA Loan Pricing Tool lets you compare multiple interest rate options and see the points, lender credits, and fees associated with each option—without completing a loan application or providing your phone number or email address.
Check your VA loan pricing with Millennial Home Loans.
