Mortgage rates were predicted to reach close to 5% this year but favorable economic conditions have kept the rates low. With that being said, VA mortgage rates have consistently remained the lowest rate in the market compared to conventional mortgage rates for 27 straight months. In addition to having the best rates at around 3% or in some cases as low as 2.25%, VA loans are the only loan program that offers 100% financing and that can replace your monthly mortgage insurance payment with a one-time fee. In some instances you may be eligible to have the funding fee waived if you meet certain criteria such as receiving VA disability or are a surviving spouse.
The savings that VA loans can give you with the low rates, 100% financing, and fee/payment reductions are incomparable to any other loan available. These savings give you the opportunity and flexibility to put those savings towards home improvements, appliance upgrades, or to help with extra expenses around the holidays.
It is rumored that revisions are being made regarding VA qualification requirements and they will be released in the new handbook by the start of 2017. Inevitably, economic conditions will also change following the upcoming Presidential election signaling potential changes in mortgage rates. If you are in the market for purchasing a home or refinancing your current home loan, now is the time to lock in a mortgage rate while they are still at historic lows.
