Compare VA Mortgage Rates and Lenders
Review current va mortgage rates for April 25, 2018 and get personalized mortgage quotes from top lenders
- Loan Type
Thank you for submitting your information!
Your mortgage quote request has been sent to our lending partners and you should receive emails from multiple lenders shortly. Comparing proposals from multiple lenders is the best way to save money on your mortgage!
Mortgage Rates by Loan Product
Mortgage Rate ReportWednesday, April 25, 2018
Mortgage rates moved mostly higher on the week although there were also some positive signs as the market continued to respond to the Fed's increasingly hawkish stance on rates. In its March meeting, the Fed pointed to strong job growth, record low unemployment, an improving economic outlook and an expected boost in near-term inflation to justify its decision to raise the Federal Funds rate 0.250% to 1.500% to 1.750%.
The minutes from the March meeting also shed more light on the Fed's more aggressive outlook on rates. Fed members were unanimous in their forecast for higher inflation, accelerating GDP growth and additional interest rate increases in the future. The Fed meeting minutes highlighted the 2017 tax cuts and recently passed budget as potential economic catalysts, which is code for sources of inflation, while also recognizing the the negative effects of a possible trade war. In sum, the meeting minutes reinforced the Federal Reserve's aggressive forecast for interest rates with the market anticipating two more rate hikes in 2018 and four rate increases in 2019.
Mortgage rates were mixed in response to the meeting minutes as relatively little new information was released. Most lenders had already factored the Fed's March rate hike into their mortgage rate pricing and the expected number of future rate hikes remained unchanged despite the Fed's bullish tone. Over the past week, however, mortgage rates increased moderately as fears of a trade war receded and more positive economic news hit the market, although the news was not all negative for borrowers.
The interest rate for a 30 year fixed rate mortgage increased 0.125% to 4.375% while the interest rate for a 15 year mortgage climbed 0.125% to 3.875%. The interest rate on a 5/1 adjustable rate mortgage (ARM) also moved 0.250% higher to 3.875% as short term mortgage products became more expensive. In more positive news, FHA mortgage rates and VA mortgage rates were flat at 3.875%, with both programs appealing to borrowers focused on low or no down payment options, especially first-time home buyers. Jumbo mortgage rates were also steady at 4.375% while non-owner occupied mortgage rates remained at 4.625%.
The Federal Reserve's decision to increase interest rates in March was widely anticipated and its meeting minutes only made its long-term outlook more clear. Although there was a bit of a a delay, we are now seeing mortgage rates gradually move higher in response to the Fed. With the Fed reinforcing its forecast for multiple rate hikes in 2018 and 2019 (up to six!), prospective borrowers looking to buy a home or refinance their mortgage may be able to lock in a lower mortgage rate by acting now. While interest rates are challenging to forecast, the Fed's latest statement and meeting minutes underscore how higher inflation could yield more aggressive action on interest rates.
Because mortgage rates fluctuate daily, we continue to actively monitor the mortgage market for updates. Borrowers should check the FREEandCLEAR mortgage rate tables regularly to review customized, updated mortgage rates for lenders in their area. Our rate tables are free to use and require no personal information.
Why Select an VA Mortgage
No Down Payment.
The VA home loan program enables eligible borrowers to buy a home with no down payment which means they can get a mortgage for 100% of the property purchase price. Most mortgage programs require borrowers to make a down payment of 3% - 20%. Active and retired military personnel, including individuals in the reserves and national guard are eligible for the VA home loan program.
Low Interest Rate.
The interest rate for a VA mortgage is typically .250% - .500% lower than the current interest rate on a conventional loan or other low / no down payment mortgage programs. This is because military personnel are considered credit-worthy borrowers and because the government guarantees 25% of the loan amount, which protects the lender against default. To help pay for the guarantee, VA loan program requires borrowers to pay a one-time, up-front VA funding fee. The funding fee ranges from 1.25% - 2.15% of the loan amount depending on your down payment, type of military service and if this your first time using a VA mortgage program.
No Ongoing Mortgage Insurance.
Unlike the FHA program and most other low or no down payment mortgage programs, the VA program does not require borrowers to pay an ongoing mortgage insurance premium. Not requiring ongoing mortgage insurance reduces your total monthly housing expense and makes owning a home more affordable.
For Home Purchases and Refinancings.
Borrowers can use the VA home loan program to buy a home or to refinance their existing mortgage. The VA offers a special refinance program, also known as a VA Streamline or IRRRL Refinance, that requires less paperwork than a regular refinance, making the process more efficient for borrowers. The VA also offers the the VA Energy Efficient Mortgages (EEM) Program that enables borrowers to include up to $6,000 in energy efficiency home improvements in their VA loan amount.
Why Borrowers Compare Mortgage Rates on FREEandCLEAR
Comparing mortgages can save you thousands. Use our rate tables to find the mortgage with the lowest rates and fees
Our rate tables put you in control. You can compare lenders anonymously plus you never need to provide your social security number
Review mortgage rates from leading lenders. Our lenders offer highly competitive terms to win your mortgage business
More FREEandCLEAR Mortgage Resources
Determine what size VA mortgage you qualify for and the amount of the required up-front VA funding fee
Review our in-depth overview of of the VA home loan program including borrower qualification guidelines and loan limits
Review our detailed comparison of low and no down payment mortgage programs including key program attributes and eligibility requirements
The FREEandCLEAR Mortgage Expert loves answering questions. So ask us your mortgage question and receive an informative answer within 24 hours