Military families want to know what interest rate they can get with a VA loan. VA mortgage interest rates tend to follow the national average. And, lately, mortgage interest rates have been historically low.
Home loan interest rates tend to rise and fall with long-term U.S. Treasury rates, which have continued to decline throughout 2011. When Treasury rates drop, then typically so do interest rates. This is not to say that if Treasury yields fall below 2% that mortgage interest rates will go even lower. Lenders do have the ability to cap their minimum interest rate to prevent a surge of refinance loans. There’s no question, lenders are seeing more refinance applications with today’s rates.
VA loan interest rates are at an all-time low right now. And, whether your lender welcomes it or not, now is a great time to get a VA refinance loan if you can save one interest point or more.
If you obtained your VA home loan when interest rates were higher, it wouldn’t be a bad idea to check out a 15-year mortgage at today’s low rates. Sometimes borrowers can save a small fortune in interest over time just by slashing their term in half. Going from a 30- to a 15-year mortgage can be most beneficial when interest rates are as low as they are today.
So, will VA mortgage interest rates drop even lower? Only time will tell. One thing is for sure — VA rates are historically low right now. Taking advantage of low rates now is something your family should strongly consider.
For more information about VA loan interest rates, contact a reputable lender.