Virginia offers all the common mortgage products that are found in other states. The three most used loan products are the fixed rate mortgage, the adjustable rate mortgage and jumbo loans for certain areas of the state with high home prices. While other forms of mortgages, such as the interest only loan, are available they are not commonly used. FHA and VA mortgage insurance programs are available in the state. Virginia has the highest amount of VA backed loans because of the amount of military bases located in the state. Norfolk is the largest naval base in the country. Some rural areas may qualify for USDA loans, but this is also a rare occurrence.
Virginia Mortgage Rates
Mortgage rates in Virginia are equal to that found around the country. The median price of homes in the state is about equal to national median prices, with the exception of a few areas on the outskirts of Washington D.C. Mortgage rates will also be affected by loan type and if mortgage insurance is purchased. Credit rating, employment and income as well as down payment amount will also have an effect on the final mortgage rate. People seeking an adjustable rate loan will have low interest rates during the introductory period of the loan, but these will increase after the initial period. Mortgages over $417,000 are considered Jumbo loans and will carry a higher interest rate due to the risk. Bad credit mortgages, or sub prime loans, will carry a higher interest rate than loans for people with good credit scores.
Virginia Refinance Rates
Refinance rates in Virginia are equal to the rates for mortgages in and around Virginia. The refinance rates are based on all the same qualifications as the original mortgage. Considerations for the equity in the home will be taken. Appraisal may be required on the property to determine if there is any equity available. People with poor credit can still refinance but should expect to pay higher rates.
Virginia Mortgage Brokers And Lenders
There are hundreds of different companies in Virginia that are qualified to issue loans for home purchases. Mortgages can be granted by private and corporate styled banks, private finance companies, internet mortgage brokers or credit unions. Financial institutions are allowed to offer special deals, such as low down payment or no closing cost products, as a way to encourage business. Low income, first time home buyer and bad credit loan programs with special qualifications.