VA vs Conventional Rates
VA mortgage rates change every business day with the bond market — and run lower than most loans because of the VA guaranty. Here is what drives va vs conventional rates.
What to know
VA base rates are usually at or below conventional, and VA adds no monthly mortgage insurance — so the all-in monthly cost is typically lower for an eligible veteran even when the headline rate looks similar.
What affects your VA rate
- Your credit score and loan term
- Whether you buy discount points
- Purchase vs IRRRL vs cash-out
- The bond market and Fed policy
- Lender margins — so compare quotes
Example payment by rate
| Rate | P&I on a $300,000 loan (30-yr) |
|---|---|
| 5.25% | $1,657 |
| 5.50% | $1,703 |
| 5.75% | $1,751 |
| 6.00% | $1,799 |
| 6.25% | $1,847 |
| 6.50% | $1,896 |
| 6.75% | $1,946 |
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Frequently Asked Questions
- VA vs Conventional Rates — the quick answer?
- VA base rates are usually at or below conventional, and VA adds no monthly mortgage insurance — so the all-in monthly cost is typically lower for an eligible veteran even when the headline rate looks similar.
- Are VA rates lower than conventional?
- Usually yes — the VA guaranty lowers lender risk, and there is no monthly mortgage insurance, so the all-in cost is typically lower.