The Benefits of a 30 Year Fixed Rate on a VA Loan in Texas

30 year fixed VA mortgage rates can vary considerably from time to time. At the time of writing some VA mortgages are nearly the lowest they have been in 18 years, and might continue to fall. There are easy-to-find websites where one can find daily average mortgage rates, overall and by US state, but in Texas, the VA home loan 30 year fixed VA loan is as stable as ever.

Since many of us are looking at homes later in life, we have to consider our options carefully. Do we want to tackle a 15 year loan with higher payments, or do we want the easy payments that a 30 year loan offers with the risk of continuing our mortgage payments into retirement. Oh the decisions!

The home loan being “fixed” simply means that the interest rate stays the same for the whole of the loan term (such as 30 years). Since the rate is at this time lower than usual it can be a good time to get a home loan, but be very sure to take into consideration all other aspects of the loan details, as the interest rate is not the only significant factor and can sometimes be balanced against other factors.

People who don’t like surprise changes in interest rates might like a fixed loan. Also they are good for those who feel fairly sure that they won’t move house in the next 5 years. However the interest rate is usually slightly higher than for an adjustable, and this type of loan has disadvantages if one sells the property less than 5 years after the loan was initiated.

The reason for interest rates being low at the time of writing include the fact that the Federal Reserve put more than a trillion dollars into mortgage-backed securities in order to decrease the interest rate and improve the housing market. While the interest rate is low, the conditions and rules for home loans are currently being applied more exactly than before, plus most of the sub-prime lenders have disappeared. This means that it is currently more difficult for those who have poor credit ratings to get a home loan.

A good way to find out if there might be any sub-prime mortgage lenders still available in your area is to ask your real-estate agent or broker. One can still get better rates by going to wholesalers rather than retailers however this approach might require a little more homework by the borrower.

30 year fixed VA mortgage rates are low currently, so for some types of people these home loans might be a good choice for some. Making a few additional lump sum payments during the year helps bring down the amount owed. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. In the long term, this is a strategy well worth pursuing if you are able.