The VA Rate vs the Rate You Deserve

Transcript

“Hello, Texas Veterans. This is another installment of helping you understand the workings behind a VA loan. Now, many times people go to a bank or a lender and they’ll say, this is the VA rate. But they very specifically say the VA rate as if that is the only rate and it’s set by the va. What they’re not telling you is that rate is completely variable based on the profit they wanna make.

So they didn’t finish the sentence. It should say, this is the VA rate at my lending institution. Because they don’t want you to think that there’s a big difference in VA rates because then you might look around, you might want to get a better deal. You might wonder if you’re being overcharged. That’s the last thing they want you to do, is they want to give you, give that to you in confidence.

This is the, the, the rate from the va, so it’s very specific on how they say that, and it’s not by accident. It’s to make you think that this is the best deal you can get and the rate is set. It’s not negotiable, and this is what you’re supposed to. But what we found. Looking at all the lenders in central Texas, in the whole state of Texas, the rates can vary by as much as one and a half to 2% in interest rate.

So it’s not the VA rate, it’s the VA rate they want to give you and make the profit they want to make because that’s based on a variable pricing model. It’s called a variable pricing model because it varies on what they think they can charge you. We talk about this in our other videos. Look at what lenders should be charged, what veterans earn, what the insurance policy is that will arm you with the knowledge you know, to give you the deal that you deserve and you got through your service.

Hopefully this is helpful and helps you ask the right questions when you’re looking for these loans.”