Great news for Oregon veterans: the Oregon Department of Veteran's Affairs (ODVA) says their 15 and 20 year fixed rate for home loans has dropped to 2.75%.
ODVA spokesman John Coffey says the "ORVET" home loan is not for refinancing; but eligible vets can now get more house for their money. "Well, we are primarily what is called a purchase money lender. Federal rules have some very stringent restrictions on our ability to refinance existing mortgages. Therefore our loans are primarily for purchases. This lowering of interest rates allows people to borrow more money at a lower income than was previously available to them. We do not encourage people to go hog-wild. But you can buy a little more house for the money this way."
Coffey says the 30 year home loan is now 3.125% of origination fee.
He says they decided to lower the rates to stay competitive; as interest rates are lower throughout the nation.