Mortgage and Refinance Rates in Virginia
Use our comparison table to compare refinance and mortgage rates in Virginia
Today's Rates In Virginia
Looking for the best mortgage rates in Virginia? You've come to the right place. You can use our rate request form, at the top of the page, to obtain personalized quotes from Virginia mortgage lenders tailored especially for you, at no charge and with no obligation. Get rates for a home purchase, refinance or a home equity loan/line of credit, with options for conventional, FHA and VA loans for Virginia borrowers.
Not quite ready to take that step? Need to do some research first? You can follow the links at the top and bottom of this page to find a wealth of consumer articles on practically every aspect of choosing and applying for a home loan, plus useful information on buying a home as well. You'll also find a wide assortment of financial and mortgage calculators to help you crunch the numbers to find the best home loan for you.
Current Virginia mortgage rates for some of the most popular types of home loans are listed above. That's a good start. But rates can change daily – sometimes several times a day. And the rate you get will depend not only on the type of loan you choose, but also on things like your credit score, down payment and other personal factors. So it's not so much about finding the best rate as it is about finding the lender with the best loan and rate for you.
Here are some of the most important things to be aware of as you shop for home loans.
Virginia Home Loans
If you're buying a home or refinancing a mortgage in Virginia, chances are you'll end up with one of four types of mortgages, each with its own guidelines. Those are:
These are the most common type of home loan in the country. Their name comes from the fact they conform to standards set by Fannie Mae and Freddie Mac, two government-created agencies that provide support for the U.S. lending market.
Conforming loans require a credit score of at least 620 and must follow other guidelines regarding down payments, debt-to-income ratios and rate structure. They're generally the first choice for borrowers with good credit, particularly if they can afford a good-sized down payment. The amount you can borrow with a conforming loan varies, with higher limits allowed to borrowers in the Virginia counties in the Washington, D.C. area where housing is more expensive, compared to the lower limits that predominate in outstate areas.
Backed by the Federal Housing Administration, these loans target borrowers who might have trouble qualifying for or affording a conforming loan. Virginia FHA loans allow lower credit scores while still allowing down payments of as little as 3.5 percent.
Borrowers with lower credit scores or smaller down payments may also be able to get better rates than they would with a conforming loan. This makes FHA loans a popular choice for first-time homebuyers and others with weaker credit. Lending limits are somewhat lower than on conforming loans but still exceed the median home price in their local market.
VA loans offer Virginia veterans the option of a no-down payment mortgage with competitive rates and no requirement for private mortgage insurance. Active-duty service members who have met certain criteria are also eligible, as are those who have served at least six years in the National Guard or Reserve. Officers of the Public Health Service and NOAA may also be eligible in some cases.
VA loans charge a funding fee that ranges from 1.25-3.3 percent of the loan amount, depending in part on any down payment that is made, whether the borrower has previously taken out a VA loan and whether one's background is regular military or Guard/Reserve. So even if you're eligible for a VA loan, it's a good idea to check your other options as well to see where you can get the best deal.
A jumbo loan is any mortgage that exceeds the local lending limits for a conforming mortgage, so it cannot be backed by Fannie Mae or Freddie Mac. As a result, jumbo loans tend to have somewhat higher rates and require higher credit scores and down payments. However, these guidelines can be somewhat flexible, depending on the lender, so that a borrower with a low credit score might still qualify by paying a higher rate and making a larger down payment, or a borrower with a good score might be allowed a small down payment in exchange for a higher rate.
Refinancing a mortgage is very similar to taking out the original loan. The main differences are that the home doesn't change hands and the home equity replaces the down payment made in a purchase. But the process for applying and qualifying is very similar. Virginia mortgage refinance rates are pretty much the same as what the same borrower would get on a home purchase for the same property.
Refinancing simply means replacing your old loan with a new one. You take out a new mortgage and use it to pay off the balance on your old one. You then go forward making your payments on the new loan. You don't need to use the same lender you got your current loan from or even refinance with the same type of mortgage – you can refinance from an FHA loan to a conforming loan, from an adjustable rate to a fixed-rate, or from a 30-year to a 15-year loan, for example.
Refinancing allows you to change the terms of your loan. Maybe you can get a lower rate. Or you can shorten the term to pay the loan off faster. Or to avoid coming up with a large balloon payment. Or lower your monthly payment by extending the term of your loan (although this means you'll be paying a lot more in interest over time).
Virginia borrowers can also use borrow money by refinancing. A cash-out refinance lets you refinance your mortgage for a higher amount than you currently owe, and receive the balance in cash. This works best if you can lower your mortgage rate at the same time. Of course, you must have enough equity to borrow against in order to qualify
Virginia Home Equity Loans
While a cash-out refinance is an option, home equity loans are the more popular option for borrowing against the value of one's home. Virginia home equity loan rates are higher than refinance rates, but the closing costs are considerably lower, which is usually enough to offset the difference, unless you're borrowing a large sum.
With Virginia home equity loans, you have two choices:
- A traditional home equity loan, where you borrow a sum of money and almost immediately begin to repay it.
- A home equity line of credit, or HELOC, where you have a line of credit you can borrow against as you wish. HELOCs are often interest-only loans during the draw period when you can borrow against them, which gives you some flexibility as far as repaying them.
Traditional home equity loans in Virginia usually have fixed rates; HELOCs always have adjustable rates during the draw period. Virginia home equity loan rates run higher than rates for a home purchase or refinance.
Of course, to qualify for a home equity loan, you need to have home equity. The general rule of thumb is that you should have at least 20 percent equity remaining after you take out the loan. Many lenders will allow you to go lower than than, but expect to pay higher rates or fees if you do.
You'll find the best rate on your Virginia mortgage loan if you comparison shop. Here are the steps to follow:
- Review/compare market rates
- Check into Virginia mortgage lenders and brokers
- Calculate payments and amortization tables for different loan types
- Contact lenders and brokers to request quotes – you can use the form at the top of this page to request rate quotes from multiple lenders in a single step.
While researching your options, keep these points in mind:
- Use advertised interest rates as a guideline only. These are reserved for borrowers with strong credit histories. Your rate may be affected by your credit score, down payment, debt-to-income ratio or other factors. That's why it's important to obtain personalized rate quotes.
- Some loan quotes may not be directly comparable to others. Check the fees charged for each loan quote and be particularly sure to check the APR, which is a measure of the total cost of a long. Look for differences in upfront payments and amortization schedules, and use a mortgage calculator to figure the total cost of each loan offer.
Virginia may be for lovers, but it's also a great place to buy and finance your dream home. Shop carefully, and find the best loan and rates for you.