Average Interest Rate for VA Loans in Colorado Springs
It goes without saying that VA loans, in general, are cheaper than conventional mortgages. If not, then they are at least as low as conventional rates. A lot depends on the region you are looking at and the wider market factors at play. In this article, we’ll discuss interest rates for VA loans in Colorado Springs.
What Is the Interest Rate for a VA Loan in Colorado Springs?
Interest rates for VA loans vary depending on a variety of factors. These include, but are not limited to, the applicant’s credit score, the loan type, and the loan length. The market also plays a role in affecting loan interest rates. Regardless, VA loans tend to be the better option for former military members. In December 2019, for example, rates for VA loans in Colorado Springs were 2.886% APR for a 30 year fixed loan. In comparison, conventional mortgage rates stood at 4.04% for a 30 year fixed loan.
VA Loans Are Always Low Cost
The benefits of veterans loans are one of the many reasons why this type of mortgage stands out from others on the market. These favorable terms are possible thanks to the backing of the federal government. The VA guaranty protects the lender against loss. This, in turn, makes them low risk, resulting in a low APR.
What About a Refinance?
Refinancing with a VA home loan is also possible. So even if you already have a conventional mortgage, it may be worthwhile to look into a VA loan. The certainty of a lower rate is the main reason why people refinance their existing mortgages through the VA with a process called a VA IRRRL.
The loan officers at Mortgage Solutions Financial are experts in VA loans in Colorado Springs. Contact us today to learn more about your financing options available and to get current information regarding VA home loan rates.