A recent independent national survey sheds light on VA loan interest rates and closing costs, revealing surprising differences between national lenders and smaller, local lenders. For veterans, these findings underscore the importance of shopping around, particularly with local mortgage brokers, to avoid paying more than necessary. Here’s what veterans should know based on this insightful survey—and why Indigo Mortgage is committed to providing veterans with the best VA loan options in New Mexico.

National Lenders and Higher VA Loan Costs

The survey analyzed VA loan rates and closing costs from the top 10 national VA lenders and compared them to those offered by smaller, local lenders. The results are clear: the large, national lenders—some with recognizable names that sound like “Pocket” or “Veterans Divided”—were charging significantly higher rates. On average, their VA loan interest rates were a full percentage point higher than those of smaller lenders.

For many veterans, a one-percent rate difference can mean thousands of dollars over the life of a loan. When national lenders did match the rates offered by local lenders, their closing costs were typically thousands of dollars higher. This means that even if the rate looks competitive, hidden fees and closing costs could add up fast, impacting veterans’ overall affordability.

Local Mortgage Brokers Offer Lower Rates and Fees

The survey highlighted an important trend: local mortgage brokers, on average, offered some of the lowest rates and fees in their respective markets. Unlike national lenders, local brokers work within the communities they serve and prioritize personalized service and fair pricing.

As part of the community, local brokers understand that a veteran’s financial well-being is more important than turning a high profit. They are committed to offering fair rates and transparent costs, which benefits veterans looking for the best possible deal. Local brokers have an incentive to keep rates and fees reasonable because they depend on community trust and reputation, not just on closing as many loans as possible.

Why Indigo Mortgage is a Top Choice for VA Loans in New Mexico

Indigo Mortgage is New Mexico’s leading VA mortgage broker, dedicated to providing veterans with the best rates and most transparent loan terms available. As a local broker, we prioritize veterans’ needs, ensuring fair treatment and competitive rates without the excessive costs associated with national lenders.

Indigo Mortgage specializes in VA loans, so we understand the unique needs of veterans and are committed to helping them save as much as possible on their home financing. We encourage all veterans to shop around for their VA loans, especially if they are considering a national lender or refinancing with their current servicer. By shopping local, veterans can often secure better rates and significantly lower fees.

The Takeaway: Shop Local to Save

The survey makes one point very clear: veterans should compare rates and fees before committing to a loan. While national lenders may have a broad reach, local brokers like Indigo Mortgage offer veterans a more affordable path to homeownership. Contact Indigo Mortgage to discuss your VA loan options and learn how we can help you save on your next mortgage.