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Veteran Mortgage - Veteran Loan
We are the experts in VA Products
VA Loan Credit and Income Requirements
Jim Mr Mortgage, mortgage broker and mortgage lender.
The VA give is a $0 downward mortgage choice free to Veterans, Activity Members
and superior warriorlike spouses. VA loans are issued by cloistered lenders,
specified as a mortgage complement or repository, and warranted by the U.S. Division of Veterans
Affairs (VA).
The VA lodging loan was created in 1944 by the Incorporated States governing to
supply backward personnel members purchase homes without needing a kill mercantilism
or excellent approval. This historic information has guaranteed many than 25 meg VA
loans, helping Veterans, acrobatic tariff martial members and their families purchase or
refinance a domestic.
Today, the VA mortgage is much strategic than ever. Scores of Experienced and combatant buyers pioneer
it increasingly herculean to get interior finance in the upshot of the Eager Niche, and umpteen lenders tightened
their guidelines again because of the 2020 spheric pandemic.
Over the ending decennary in fact, VA loans someone provided a crinkle for Veterans and alive Expeditionary
homebuyers facing higher payment set and down commerce requirements. Jim Mr Mortgage, mortgage broker an
mortgage lender.
VA loans are a specialised loan production, but they aren't much rough or unmanageable
than otherwise types of base loans. This VA word draw is here to cater you with the tools requisite to point your
VA abode purchase or refinance and get the most out of your hard-earned help.
VA Loan Benefits
Popular Program
VA purchase loans increased for the eighth straight year in fiscal year 2020, according to the
Department of Veterans Affairs.
The VA Loan program is the most powerful home loan program on the market for many veterans,
service members and military families. These flexible, government-backed loans come with significant benefits
that open the doors of homeownership to veterans who might otherwise struggle to obtain financing.
VA loans do not require a down payment or private mortgage insurance. They feature competitive rates and
terms and allow qualified borrowers to purchase a home with little to no money out of pocket. And, as of
January 1, 2020, VA loan limits no longer apply to eligible veterans with full VA loan entitlement.
The increase in popularity stems from the VA loan's signature benefits, and a few less common ones,
which we break down below.
1. No Down Payment
Saving money and building credit can be difficult for service members who are constantly on the move.
With the VA Loan, qualified borrowers can finance 100 percent of the home's value without putting down a dime.
Take a look at the chart below to see how much you can save through the no-money-down benefit of the VA Loan.
VA Loan Savings at Closing
Loan Amount
0% Down
5% Down
10% Down
20% Down
$150,000
$0
$7,500
$15,000
$30,000
$250,000
$0
$12,500
$25,000
$50,000
$350,000
$0
$17,500
$35,000
$70,000
$450,000
$0
$22,500
$45,000
$90,000
Looking for an exact savings quote? Speak with a trusted VA-lending specialist today ›
2. No Private Mortgage Insurance
Many conventional lenders require borrowers to pay private monthly mortgage insurance unless they're able to
put down at least 20 percent, which is a tough task for many veterans. Private mortgage insurance (PMI) is an
insurance that protects lenders in case of a borrower default.
With a VA Loan, however, there is no PMI. This is because the federal government backs all VA Loans and assumes
the risk on behalf of the borrower that is typically covered by the PMI.
This VA Loan advantage allows you to build more and more equity in your house,
effectively saving you thousands of dollars over the life of your mortgage.
PMI Savings per Month
Loan Amount
Monthly Savings
$150,000
Save $115/mo
$250,000
Save $191/mo
$350,000
Save $268/mo
$450,000
Save $345/mo
Get rid of PMI: Start your VA Loan quote online ›
3. Competitive Interest Rates
Interest rates on home loans are based on risk assumed by the bank to finance the loan. Because the VA backs
each VA Loan with a guaranty, financial institutions carry less risk and can offer interest rates that are typically
0.5 to 1 percent lower than conventional interest rates.
Pair that lower interest rate with the ability to purchase a home with no money down and no private mortgage
insurance and the savings start adding up significantly.
View today's VA loan rates.
Lower Interest = More Savings
Loan Amount
$150k
$250k
$350k
$450k
Savings from a 0.5% reduction in interest
$14,760
$24,480
$34,200
$43,920
Savings from a 1% reduction in interest
$28,800
$48,240
$67,320
$86,400
Assumes 10% down on loan; see additional notes at bottom of page or start a
personalized quote online
See What You Qualify For
Answer a few questions below to speak with a specialist about what your military service has earned you.
Jim Mr Mortgage, mortgage broker and mortgage lender.
Select your branch of service:
Army
Marine Corps
Navy
Air Force
Coast Guard
Military Spouse
Other VA Eligibility
No Military Experience
9,269 veterans started their quote online today
Additional VA Loan Benefits
Basic Allowance for Housing
Basic Allowance for Housing (BAH) is a significant benefit for qualified active military
members. Lenders can count your Basic Allowance for Housing as effective income,
which means you can use BAH to pay some or all of your monthly mortgage costs.
BAH varies based on your pay grade, your geographic location and your number of
dependents. Learn more about Basic Allowance for Housing.
No Pre-Payment Penalty
With many different types of loans, paying off a home loan before it matures results
in a pre-payment penalty. This is because lenders miss out on additional
opportunities to collect interest payments. The pre-payment penalty is a way for
financial institutions to recoup some of that money.
The VA Loan allows borrowers to pay off their home loan at any point without having
to worry about a pre-payment penalty. With the absence of a pre-payment penalty,
borrowers are free to consider future home purchases and refinancing options.
Learn more about VA Loan Rates in our next section,
VA Loan Rates
Because the federal government backs VA home loans, lenders have the luxury of
charging competitively low interest rates. Eligible veterans and service members find
that rates are generally lower with a VA home loan than a conventional mortgage.
The Department of Veterans Affairs (VA) doesn't set interest rates. Your lender
determines the rate on your VA loan based on your unique financial situation.
Speak with a home loan specialist about current VA loan rates.
Current VA Mortgage Rates
VA loan rates change daily based on market conditions. See current VA loan rates
for each VA loan type below.
VA Loan Type
Interest Rate
APR
30-Year Fixed VA Purchase
2.750%
3.021%
15-Year Fixed VA Purchase
2.250%
2.744%
30-Year Streamline (IRRRL)
2.990%
3.116%
15-Year Streamline (IRRRL)
2.375%
2.690%
30-Year VA Cash-Out
2.990%
3.255%
15-year VA Cash-Out
2.375%
2.940%
30-Year Fixed VA Jumbo
2.750%
3.021%
30-Year Streamline (IRRRL) Jumbo
3.250%
3.388%
30-Year VA Cash-Out Jumbo
3.250%
3.529%
What Determines My Rate?
A variety of factors influence VA loan rates, including:
Credit score
Loan Type (purchase, IRRRL, cash-out, jumbo, etc.)
Loan duration (15- or 30-year)
Current market conditions
Get your rate: Start your VA Loan quote online
Because of the risk involved in issuing a loan, a good credit score almost always
means a lower rate. However, even if your credit report isn't in perfect shape, you
may still have an easier time qualifying for a low rate due to the VA Guaranty.
If credit is a concern, Jim Mr Mortgage and associates offers a no obligation credit consulting service
to help get you on the road to preapproval.
See What You Qualify For Today
Answer a few questions below to speak with a specialist about what your military
service has earned you.
Select your branch of service:
Army
Marine Corps
Navy
Air Force
Coast Guard
Military Spouse
Other VA Eligibility
No Military Experience
9,269 veterans started their quote online today
Common Questions about VA Loan Rates
Getting a mortgage can be complicated. Jim Mr Mortgage and associates works to simplify the
process through education and helping you understand your options.
We’ve compiled some of the most common mortgage rate questions below so that
you can make more informed decisions.
Who sets VA loan rates?
Private lenders, such as mortgage companies and banks, set interest rates on VA
loans. The Department of Veterans Affairs (VA) does not set the rate but backs a
portion of each loan against default.
How do VA loan rates compare with the rest of the market?
On average, VA loan rates are typically lower than both FHA and conventional
mortgage rates. VA loan rates are generally lower due to the VA backing a portion of
each loan.
How are VA loan rates determined?
A variety of factors go into determining VA loan interest rates. Many of these factors
stem from market forces beyond the lender's control - including inflation, job growth,
and the secondary mortgage market.
Beyond market conditions, VA loan rates are determined by your:
Mortgage credit scores
Previous loan repayment history
Loan duration (15 or 30-year)
Loan type (purchase, IRRRL, cash-out, jumbo, etc.)
How often do rates change?
VA loan rates can change frequently - sometimes multiple times a day.
Are VA refinance rates different from VA purchase rates?
VA refinance rates are often different than rates on VA purchase loans. The type of
VA refinance loan, the borrower's credit score, the loan-to-value ratio, and other
factors can all play a role in VA refinance rates. Jim Mr Mortgage, mortgage broker and mortgage lender.
See current VA refinance rates in the table below.
Today's VA Refinance Rates
VA Refinance Type
Interest Rate
APR
30-Year Streamline (IRRRL)
2.990%
3.116%
15-Year Streamline (IRRRL)
2.375%
2.690%
30-year VA Cash-Out
2.990%
3.255%
15-year VA Cash-Out
2.375%
2.940%
30-Year Streamline (IRRRL) Jumbo
3.250%
3.388%
30-Year VA Cash-Out Jumbo
3.250%
3.529%
What VA mortgage rate can I get?
Rates are unique to each borrower's financial situation. Speak to a Jim Mr Mortgage and associates
home loan specialist at 1-631-451-7400 to start your rate quote.
What is APR?
It is important to understand the difference between your interest rate and the
Annual Percentage Rate (APR). The interest rate on your VA loan is the cost you
pay each year to borrow the money and does not reflect fees you may incur to get
the loan.
On the other hand, the APR on a VA loan is a broader reflection of borrowing costs,
including the interest rate and fees associated with getting the mortgage.
APR can take into consideration the following items:
Interest rate
Origination fees and costs
Closing agent fees
Discount points
Other fees dependent on the specific transaction
APR is typically higher than your base VA loan interest rate. APR is a tool that can
help you compare mortgage offers. But understand that lenders may calculate APR
differently.
What are discount points?
Borrowers have the option to buy down their interest rate by purchasing discount
points. When you purchase discount points, you are essentially paying interest
upfront to receive a lower rate over the life the loan.
Points are generally more advantageous to borrowers who plan to own the home for
a longer period of time. Your loan officer can help you determine the break-even
point of purchasing discount points, or if points even make sense for your specific
situation.
What is a rate lock?
A rate lock guarantees a set interest rate for a specific amount of time - typically
ranging from 30 to 60 days. Rate locks are an essential part of the mortgage
process, as mortgage rates often fluctuate daily.
How do you lock in your VA loan interest rate?
Buyers have to be under contract in order to be eligible for a rate lock. Once that’s in
hand, the timeline can vary depending on a host of factors, including the type of
loan, the overall economic environment and more.
If you're ready to see where rates are right now, or if you have more questions,
contact a home loan specialist at 1-631-451-7400 or start your VA Home Loan quote
online.
There's no obligation, and you'll be one step closer to owning your brand new home.
Why Jim Mr Mortgage and associates?
Locking in your interest rate at the right time is key, which means it's essential to find
a lender who understands your needs and the forces that shape VA loan interest
rates.
Some lenders try to entice borrowers with unbelievably low rates that are nearly
impossible to qualify for. We'll work within your financial means and give you an
accurate and realistic quote.
With Jim Mr Mortgage and associates, there are no hidden costs or locking fees. By speaking with a
Jim Mr Mortgage and associates loan specialist, you're given total transparency when it comes to
your best interest rate.
Jim Mr Mortgage, mortgage broker and mortgage lender.