Fed Cuts Rates — What It Means for Washington Veterans Paying Over 6.125%
The Federal Reserve announced a 0.25% rate cut this week, and while the Fed doesn’t directly set mortgage rates, this move often leads to lower refinancing opportunities — especially for VA loans.
For Washington State Veterans who locked in rates at 6.125% or higher, this could be the best window we’ve seen in years to explore an IRRRL (VA Streamline Refinance) or full VA cash-out refinance.
Why This Matters in Washington
1. WA Home Prices Make Every Rate Drop Count
With the median home price in Washington well above the national average, even a small reduction in rate can mean hundreds in monthly savings for VA borrowers.
2. VA IRRRL Programs Shine When Rates Improve
For qualified Washington Veterans, the VA IRRRL offers:
No appraisal in most cases
Minimal documentation
Lower costs and a faster process
Ability to roll closing costs into the loan
If you’re over 6.125%, today’s rate environment may allow you to drop your payment with little hassle.
3. Adjustable-Rate Borrowers May See Relief Faster
If you’re in an ARM or considering switching to a fixed VA loan, the Fed cut can help drive down those adjustment margins sooner.
Example Savings for WA Borrowers
A Veteran with a $550,000 loan at 6.375% could potentially save:
$150–$250+ per month depending on the new rate
Skip one monthly payment with an IRRRL
Receive an escrow refund if switching lenders
(Exact numbers vary — but the opportunity is real.)
Should Washington Veterans Refinance Now?
If your rate is 6.125% or higher, the answer is:
👉 It’s worth running the numbers.
This Fed cut may not last long as lenders adjust pricing quickly. Getting a quick, no-obligation VA rate review could reveal meaningful savings.
Helping Washington Veterans Since 1996
At VAHomeLoans.com / All Tech Mortgage, we specialize in serving Washington’s Veterans with:
39 years of mortgage experience
Access to wholesale pricing
Fast, low-cost VA loan refinances
If you want to see your updated VA payment or estimate your potential savings, reach out anytime — it only takes a few minutes. https://vahomeloans.com