VA Lowers Its Mortgage Rates: The Department...

VA Lowers Its Mortgage Rates: The Department of Veterans Affairs said it is lowering its maximum interest rate for federally backed VA home mortgages by one-half percentage point to 9%, effective today. The move puts the rate below 9.5% for the first time since April 13, 1987. Monthly payments for principal and interest on a typical VA loan of $80,000 will amount to $643.70, which is $28.59 a month less than the previous rate. The maximum rate for graduated payment mortgages was also lowered by one-half percentage point to 9.25%, home improvement loans to 10.5% and loans for manufactured homes to 11.5%.