what would the va rate be if conventional loans dropped to 4.5%?
John, Conventional loans and VA loans do not move together. FHA and VA loans are federally backed loans and they tend to remain more constant. Conventional loans are usually tied to indexes and tend to move more with the free market. If the proposed federal intervention happens to lower rates to 4.5%, FHA and VA loan rates most probably will not move below that. Althought FHA and VA loans will still have several advantages, like considerably lower down payments, etc… Your mortgage consultant should be able to provide you with more information. Good luck!
