Most people do not know VA mortgage rates are priced differently than the FHA mortgage rates. It is hard to know that since they are both found under the government mortgage products. Mortgage lender rates do not give you a rate for both VA and FHA.

They post what they call government rates which include both the FHA VA mortgage because they are both insured by the government. But there is a difference between the two.

VA Mortgage Rates - How Different Are They?

A VA loan costs .250% more in the form of an add on or discount than the FHA loan. For example, you have a $200,000 loan amount. The government rate is 4.875% but you would have to pay the add on of .250% for VA. .250% times $200,000 is $500.

You would pay $500 as part of your closing costs or increase the rate and use yield spread premium to pay for it. And there are additional add ons for a VA streamline refinance mortgage.

We post the government rate everyday on our website and we call it the FHA rate because it does not have the add on that the VA rate does. So, if you want today’s VA mortgage rates you can use the FHA rate or government rate in your mortgage shopping but remember you will have that add on.

Also, do not get a false sense of security when shopping for a VA mortgage. The government does not stand behind you making sure you get the best VA mortgage. Pretty much any mortgage company can just pay a fee and voila!…they are VA mortgage lenders. You still have to do your due diligence as if you are on your own…because you are!

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