As expected, VA mortgage rates will continue to rise like the other mortgage programs. In November 2022, rates for all kinds of mortgage loan programs rose. The increase was more than three percentage points higher than the 2021 rates.
VA mortgage rates predictions and loan types
If Freddie Mac is correct in its prediction, we can expect that mortgage rates will be on the 6.4% average in 2023, including the VA mortgage rates. To help you choose which VA loan best suits your need, here are the different types:
- VA purchase loan is the most popular type of VA loan. It has lower rates compared to the 30-year conventional loan. VA-backed purchase loan also offers better terms and lower rates.
- Native American Direct Loan (NADL) is a VA loan open for Native American veterans and their spouses. The proceeds of this loan can be used to buy or improve a home situated on trust lands.
- Cash-out refinance is another type of VA loan that will allow lenders to take cash from the equity built on their homes. Refinancing a non-VA loan into a VA mortgage is possible in this kind of VA loan.
A popular misconception is that the Department of Veterans Affairs sets the mortgage rates. The rates will depend on the prevailing market rates, and your chosen lender will determine the rate given to you. Whatever rates and loan terms will be offered to you will also be based on your financial situation and credit profile. If you can afford to make a substantial down payment, there is a big chance that you will qualify for a lower interest rate.
Interest rates change, so drop us a line for the current rates and offers. We can help you begin your preparation for owning your home. We assist veterans, active-duty military members, and surviving spouses of veterans in getting the best VA mortgage rates.