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Virginia Mortgage Rates for March 2019

The average 30-year mortgage rate in Virginia is currently 4.61%. Virginia's 15-year mortgage rates average around 4.11%. The average initial rate for 5/1 adjustable-rate mortgages (ARMs) is 4.03%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.61%–0.01%–0.27%
15-year fixed4.11%–0.01%–0.31%
5/1 ARM4.03%–0.01%–0.14%
Rates for a $200,000 loan with 20% down payment

Getting a mortgage is an essential step for most homebuyers, but it's not always easy to tell whether a quote is competitive or not. Without knowing the going rates for a typical home loan, you can't form a solid baseline to evaluate your options. To help solve this problem, we track mortgage rates by loan type, lender, and location across the Old Dominion.

Best Mortgage Rates in Virginia

As of this week, Virginia's lowest 30-year mortgage rate estimate is 3.88%. 15-year mortgage rates in the state go as low as 3.13%, while the lowest initial rates for 5/1 ARMs start from 3.00%. These numbers are based on a mortgage balance of $200,000 with a loan-to-value ratio of 80%.

Mortgage rates are built upon dozens of variables, ranging from the lender's business objectives to the underwriters' assessment of your risk as a borrower. As a result, every mortgage quote is a uniquely tailored number that would change if you swapped out any one of those factors, such as your choice of lender or loan type.

To help homebuyers in Virginia start their search off on the right foot, we've gathered rate information from across the state with a specific focus on estimates from the most popular lenders and locations. Having a good grasp of rates makes it easier to identify the right decision when it comes time to select a lender offer.

Current Mortgage Rate Forecast for Virginia

For 2019, mortgage rates in Virginia and the rest of the country may not be rising as much as expected previously. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach before continuing its original plan to raise the target federal funds rate over the next twelve months.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This is a significant change from expectations at the end of 2018, when the FOMC raised the target rate by 25 basis points. Currently set at 2.25%-2.50%, the target federal funds rate affects the prices that banks pay to borrow money for their operations. Because the federal funds rate affects the interest rates that banks offer to consumers, the FOMC's periodic announcements are regarded as potential indicators of future rate trends.

For Virginia homebuyers, the news of potentially stabilizing rates creates some breathing room for a more deliberate shopping process. In times of rising rates, people often rush to secure financing before costs get too high. With the FOMC announcing its new intention to monitor the market before carrying out future hikes, buyers can rest easy knowing that mortgage rates won't explode while they do the necessary legwork to find the right property and lender.

Rates at Virginia's Most Popular Mortgage Lenders

These days, many borrowers find it easier to compare mortgage lenders online. However, traditional institutions are still some of the first places that people look to for information about home financing. To gauge the level of mortgage rates at Virginia's major banks, we collected estimates based on some typical loan assumptions.

Column graph comparing 30-year mortgage rates at major Virginia banks

In this one-time sampling of mortgage rates, we found that the lowest and highest estimates were separated by 37.5 percentage points. At our assumed loan amount of $200,000 that's a difference of more than $12,000 over thirty years. While actual rates will probably change as time goes on, our findings indicate that Virginians may be able to find lenders that offer lower rates than the rest of the competition.

That being said, choosing the right mortgage lender goes far beyond picking out the lowest interest rate or APR you see. Mortgages tend to require extensive cooperation between the applicant, the lender, and any brokers or realtors that happen to be involved in the transaction. This means you'll also need to think about a lender's closing costs and quality of service as well as the proffered rate.

Comparing Home Loan Rates by City

We also did some research on the average rate of a 30-year mortgage in each of Virginia's largest metro areas. While rates appeared to stay similar across all the cities we examined, local property values were highly dependent on location.

MSAAverage mortgage rateMedian home value
Washington-Arlington-Alexandria4.88%$452,615
Virginia Beach-Norfolk-Newport News5.04%$265,271
Richmond5.02%$252,539
Roanoke4.90%$187,470
Lynchburg4.85%$180,549
Average rate is for a 30-year mortgage with a 20% down payment.

Although we saw some variation in the average mortgage rate from place to place, the choice of lender appeared to be more impactful than the location of the estimate. Virginia's homeowners are more likely to experience differences in their monthly mortgage payments thanks to property prices rather than disparities in the cost of financing. For instance, the area around Washington D.C. and Arlington reported a median home value more than twice that of Lynchburg.

Evaluating Your Mortgage Options: An Example in Roanoke

Getting a lower mortgage rate is an important objective for a lot of homebuyers, especially in Virginia's high-cost markets. One relatively reliable way to access lower rates is by opting for alternative loan structures such as a 15-year mortgage or an ARM loan. Depending on your situation, these options may lower your interest expenses compared to a standard 30-year loan.

To better understand how this works, consider the example of a $200,000 home purchase in Roanoke. Assuming a 20% down payment, the city's average 30-year mortgage carries a rate of 4.90%. This leads to a minimum monthly cost of $850. After 30 years, this loan will incur $145,699 of interest.

However, very few homebuyers who get a 30-year loan stick around for the full three decades of repayment. If you wanted to move relatively soon, getting a 5/1 ARM loan would let you secure a lower rate for the first five years. So long as you exit the ARM before the variable rate kicks in, you avoid exposure to potential increases in monthly payment. In this case, our monthly cost during the first half-decade would be $767.

On the other hand, some homeowners are more interested in paying as little interest as possible on the way to full ownership of their property. For these, a 15-year mortgage can drastically cut lifetime interest at the cost of larger (but fewer) monthly payments. At Virginia's current average rate, a 15-year mortgage costs at least $1,193 per month for a grand total of $54,622 in interest.

The average 30-year mortgage rate in Virginia is currently 4.61%. Virginia's 15-year mortgage rates average around 4.11%. The average initial rate for 5/1 adjustable-rate mortgages (ARMs) is 4.03%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.61%–0.01%–0.27%
15-year fixed4.11%–0.01%–0.31%
5/1 ARM4.03%–0.01%–0.14%
Rates for a $200,000 loan with 20% down payment

Getting a mortgage is an essential step for most homebuyers, but it's not always easy to tell whether a quote is competitive or not. Without knowing the going rates for a typical home loan, you can't form a solid baseline to evaluate your options. To help solve this problem, we track mortgage rates by loan type, lender, and location across the Old Dominion.

As of this week, Virginia's lowest 30-year mortgage rate estimate is 3.88%. 15-year mortgage rates in the state go as low as 3.13%, while the lowest initial rates for 5/1 ARMs start from 3.00%. These numbers are based on a mortgage balance of $200,000 with a loan-to-value ratio of 80%.

Mortgage rates are built upon dozens of variables, ranging from the lender's business objectives to the underwriters' assessment of your risk as a borrower. As a result, every mortgage quote is a uniquely tailored number that would change if you swapped out any one of those factors, such as your choice of lender or loan type.

To help homebuyers in Virginia start their search off on the right foot, we've gathered rate information from across the state with a specific focus on estimates from the most popular lenders and locations. Having a good grasp of rates makes it easier to identify the right decision when it comes time to select a lender offer.

For 2019, mortgage rates in Virginia and the rest of the country may not be rising as much as expected previously. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach before continuing its original plan to raise the target federal funds rate over the next twelve months.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This is a significant change from expectations at the end of 2018, when the FOMC raised the target rate by 25 basis points. Currently set at 2.25%-2.50%, the target federal funds rate affects the prices that banks pay to borrow money for their operations. Because the federal funds rate affects the interest rates that banks offer to consumers, the FOMC's periodic announcements are regarded as potential indicators of future rate trends.

For Virginia homebuyers, the news of potentially stabilizing rates creates some breathing room for a more deliberate shopping process. In times of rising rates, people often rush to secure financing before costs get too high. With the FOMC announcing its new intention to monitor the market before carrying out future hikes, buyers can rest easy knowing that mortgage rates won't explode while they do the necessary legwork to find the right property and lender.

These days, many borrowers find it easier to compare mortgage lenders online. However, traditional institutions are still some of the first places that people look to for information about home financing. To gauge the level of mortgage rates at Virginia's major banks, we collected estimates based on some typical loan assumptions.

Column graph comparing 30-year mortgage rates at major Virginia banks

In this one-time sampling of mortgage rates, we found that the lowest and highest estimates were separated by 37.5 percentage points. At our assumed loan amount of $200,000 that's a difference of more than $12,000 over thirty years. While actual rates will probably change as time goes on, our findings indicate that Virginians may be able to find lenders that offer lower rates than the rest of the competition.

That being said, choosing the right mortgage lender goes far beyond picking out the lowest interest rate or APR you see. Mortgages tend to require extensive cooperation between the applicant, the lender, and any brokers or realtors that happen to be involved in the transaction. This means you'll also need to think about a lender's closing costs and quality of service as well as the proffered rate.

We also did some research on the average rate of a 30-year mortgage in each of Virginia's largest metro areas. While rates appeared to stay similar across all the cities we examined, local property values were highly dependent on location.

MSAAverage mortgage rateMedian home value
Washington-Arlington-Alexandria4.88%$452,615
Virginia Beach-Norfolk-Newport News5.04%$265,271
Richmond5.02%$252,539
Roanoke4.90%$187,470
Lynchburg4.85%$180,549
Average rate is for a 30-year mortgage with a 20% down payment.

Although we saw some variation in the average mortgage rate from place to place, the choice of lender appeared to be more impactful than the location of the estimate. Virginia's homeowners are more likely to experience differences in their monthly mortgage payments thanks to property prices rather than disparities in the cost of financing. For instance, the area around Washington D.C. and Arlington reported a median home value more than twice that of Lynchburg.

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