Is the CalVet interest rate variable or fixed?
Cal-Vet Loans have always had a variable interest rate, although historically rates have not been changed often, and the rate is not tied to an index. All loans issued prior to 1999 are required by law to have a uniform interest rate, and if changed they must all change together. Loans issued in 1999 and subsequent years have rates that were set based on the cost of the bond funds and market conditions, and have a cap on the rate increase of 0.5% (1/2 of 1%) over the life of the loan. It is unlikely that the department will need to change the rates on existing loans.
