Compare Current VA Loan Rates

Current Mortgage Rate Trends

Over the past year and a half, VA loan rates have largely fluctuated in the 6% to 7% range. Mortgage rates are largely influenced by the 10-year Treasury note's yield, which moves up and down based on investors' expectations of future monetary policy and other economic indicators.

Mortgage rates remain stubbornly high in part due to ongoing economic uncertainty, including questions about U.S. tariff policy and broader inflation concerns.

When investors sense market instability, they often demand higher yields on bonds, which, in turn, pushes mortgage rates up. Until there's more clarity on trade policy and inflation trends, rates are unlikely to fall significantly.

Here's where national mortgage rates stand so you can compare how VA loan rates stack up.

^*Source: Curinos LLC, June 6, 2025; assumes a 720 FICO^® Score^Θ, $350,000 mortgage
^**Source: FRED via Optimal Blue, June 6, 2025
Notes: Rates can vary by data source; monthly payment calculation uses APR and assumes a $350,000 mortgage and 20% down; APR calculation assumes 5% in fees

Mortgage Rate Trends for the Last 5 Years

During the coronavirus pandemic, mortgage interest rates dropped to record lows due to the Federal Reserve's efforts to soften the economic blow for the housing market.

But in 2022, mortgage rates spiked as the central bank started hiking the federal funds rate to combat rising inflation. While the federal funds rate doesn't directly impact mortgage rates, the Fed's expected policy decisions do influence the 10-year Treasury yield, which influences the rates mortgage lenders offer.

After peaking in October 2023, rates haven't moved significantly in either direction due to continued economic uncertainty.

30-Year Mortgage Rate Trends 2020 to 2025

What Affects VA Loan Rates?

VA loans generally come with slightly lower interest rates than conventional loans. For example, while the average VA loan rate is 6.4% as of June 12, 2025, the average rate for a 30-year fixed-rate conventional loan is 6.85%.

That's because the U.S. Department of Veterans Affairs provides a financial guarantee in the event that a borrower defaults, reducing the risk to the lender.

However, the rate you get may be higher or lower than the average. In addition to economic conditions, the bond market and Federal Reserve policies, here are some factors that may affect your VA loan rate:

• Credit score: Your credit score provides a quick snapshot of how you manage your debt obligations. Higher credit scores are typically a result of on-time payments and responsible debt management, both of which lower the risk to the lender. As a result, higher credit scores typically qualify for lower interest rates.
• Debt-to-income ratio: Your debt-to-income ratio (DTI) indicates how much of your gross monthly income goes toward debt payments. Higher DTIs correlate with a greater risk of missing payments, resulting in higher interest rates.
• Loan amount: The more you borrow, the more a lender has to lose in the event that you default on your payments. As such, higher loan amounts may translate to higher interest rates.
• Repayment term: Longer repayment terms typically come with higher interest rates because the lender faces a greater risk of default.
• Loan type: VA loan options include purchase loans, interest rate reduction refinance loans (IRRRLs), cash-out refinance loans and Native American direct loans. Your interest rate may vary depending on which loan program you choose.

VA Loan Requirements

VA loans are only available to eligible members of the military community, so basic VA loan requirements include the following:

• Active-duty service member with at least 90 days of continuous service
• Military veteran who meets service and discharge requirements based on when you served
• National Guard or Reserve member who meets active-duty or other service requirements
• Surviving spouses of active-duty service members missing in action or being held as prisoners of war, or those who are eligible for certain types of VA dependency and indemnity compensation

Here are some additional requirements:

• Credit score: The VA doesn't set a minimum credit score, but lenders typically require a score of 620 or higher.
• DTI: The VA doesn't set DTI requirements, but lenders typically prefer a ratio under 41%. The maximum DTI possible is 65%.
• Occupancy: You must live in the home you buy with a VA loan.

Pros and Cons of VA Loans

As with other mortgage options, there are both benefits and drawbacks to consider with VA loans. Here's what to keep in mind as you consider your options.

How to Get the Best VA Loan Rate

While some factors that affect VA loan rates are out of your control, there are some steps you can take to ensure you get the lowest possible rate available to you:

• Improve your credit score. Even though VA loans have flexible credit requirements, a higher credit score can help you qualify for the lowest available interest rates. Check your Experian credit report and FICO^® Score to evaluate your credit standing and determine steps you can take to improve your score.
• Shop around. VA loan rates can vary by lender, so getting quotes from several lenders can help you find the most competitive offer.
• Consider a shorter repayment term. Shorter terms, like 15-year loans, often come with lower interest rates compared to 30-year loans. That said, you'll need to make sure the higher monthly payment fits your budget comfortably.
• Make a down payment. While not required, putting money down can reduce your interest rate and overall loan cost and may also reduce your VA funding fee.
• Lock in your rate. If rates are fluctuating, consider locking in your rate when market conditions are favorable to protect yourself from future increases.
• Maintain steady employment and income. Stable income and job history give lenders confidence, which may help you secure a better rate or more favorable loan terms.
• Keep your DTI low. A lower DTI signals financial stability and may lead to better loan terms.

Should You Refinance Your VA Loan?

Refinancing a VA loan can help you secure a lower interest rate, change your loan terms or tap into your home's equity. However, it's not the right move for every borrower. Here's when refinancing could make sense:

• Your credit score or income has improved since you first took out your VA loan.
• Interest rates have dropped since you got your loan.
• You want to switch from an adjustable-rate to a fixed-rate mortgage.
• You need to lower your monthly payment by extending your term.
• You want to tap into home equity with a VA cash-out refinance.
• You're planning to stay in your home long term and expect to recoup the upfront costs of refinancing.

On the flip side, here are some situations where it might not make sense:

• Your credit or income has taken a hit since you first took out your VA loan.
• Market interest rates have risen since you took out your loan.
• You don't have sufficient equity for a cash-out refinance loan.
• You're almost done paying off your loan, and restarting the loan term could add unnecessary interest costs.
• You can't afford the closing costs on a new refinance loan.
• You're planning to move soon and may not recoup the closing costs of a refinance loan.

The Bottom Line

VA loans can be an excellent option for eligible service members, veterans and surviving spouses, especially in a tough rate environment. While current mortgage rates remain elevated due to economic uncertainty, there are still ways to position yourself for the best possible deal.

More specifically, steps like building your credit score, comparing lender offers and keeping your debt-to-income ratio low can increase your chances of securing a competitive rate.

As you explore your options, keep a close eye on your credit health. Monitoring your credit with Experian for free can help you track your progress, spot potential issues early and stay ready when rates start to shift. Whether you're buying a home or considering a refinance, staying informed and proactive can help you make the most of your VA loan benefits.