Are VA Mortgage Loan Rates Going Down?
When it comes to shopping for a new home, your first concern is almost always finding a loan with an affordable interest rate. The lower the interest rate is, the less you’ll pay on the loan itself. While VA mortgage loans typically have lower rates than standard mortgage loans, those rates can change throughout the year. So, are VA mortgage loan rates going down? Here’s what you need to know for 2020.
The Current Status of VA Mortgage Loan Rates in the U.S.
Knowing the status of mortgage rates in the U.S. can help you determine when is a good time to buy a home. Here’s some important information about the current state of VA mortgage rates.
Rates Vary By the Day
Though the VA sets requirements for VA mortgage loans, they don’t set the interest rates that lenders charge. Those are set by each lender and are based on the current market rates. If rates are high for traditional mortgages, you can expect VA mortgage rates to follow that same trend. However, since rates change daily, based on those changing markets, it’s impossible to tell exactly what you can expect in the future.
Right now, those rates seem to be fairly steady and may end up going lower over the course of the year. Currently, the average interest rate for a standard 30-year fixed mortgage is 3.99 percent. For VA borrowers, that number will likely be slightly lower.
Should You Wait?
Frankly, waiting for rates to drop even lower may not be in your best interest if you have a house in mind. It all depends on the type of real estate market you’re in. If there are more buyers looking for a house in your area than there are homes for sale, waiting could mean you lose out on a house. But if the market is flooded with homes in your price range, waiting may be okay.
That said, rates are already on the lower side. If you’re in a place to buy a house and already know which one you’d love to have, don’t wait to start getting quotes for VA mortgage loans. The sooner you do, the easier it will be to find a loan that works with your budget. Remember, you can always lower your interest rate by improving your credit, paying down your debts, and increasing your available income every month.
Get More Information
Have questions about VA mortgage loans? Call Mortgage Solutions Financial today to get more information.