To learn about the best VA loan rates in NC, contact AmeriSouth today. We offer the best rates in NC for our armed forces veterans because we believe that every veteran and their family deserves to own their own home. Whether you have picture-perfect credit or are in the credit-rebuilding process, AmeriSouth can help with a low-rate VA loan!
What is Used to Determine VA loan rates in NC?
Mortgage rates are a little bit different than what you might think. Many people mistakenly think that mortgage rates are posted rates. Many people see a rate on TV and assume that they will qualify for the advertised rate. However, there is a lot of information that goes into how we qualify a person for mortgage rates. What factors matter the most?
It should come as no surprise that a person’s credit score will factor into their VA loan rates in NC. For example, someone with a 500 credit score is not going to qualify for the same interest rate as somebody with a 750 credit score. Why? The person with the 750 credit score is going to be viewed as apter to pay back their debt because they have a proven track record of paying back their debts.
Loan to Value
This is a very important factor that will be used to determine your VA loan rates, and it’s one that very few people even think about. The point to consider is the property value versus the amount that you want to borrow against it. For example, if you were buying a $100k home and you financed 100%, you can expect your rate to be a little bit higher than what it would be if you were putting down 20% of your own funds.
The VA Backs Up their Loans
The beauty of the VA loan and the reason that VA loans work so well for veterans is not only that veterans can finance up to 100% of their home’s value, but they can also get a better interest rate than they would with a conventional loan where they financed 80% of the home’s equity.
Ordinarily, even the worst rates for VA loans are better than traditional loans. The reason for this is that the VA backups their loans up to 25% of the value of the property, which gives us lenders the ability to offer a lower interest rate.
A Buydown Can Lower Your VA Loan Rates in NC
Once we pinpoint a base rate for you, we can decide if a potential buydown of the interest rate is worth the money. Sticking with the $100k home scenario, let’s consider a 5% base rate for your loan.
With a 5% base rate, it’s possible that you could buydown to a 4.75% rate for a half-point or three-quarters of a point. Let’s use the half-point scenario.
A half-point buydown means you’d pay about $500 to get a 4.75% rate instead. 4.75% versus 5% could save you between $50-$70/month.