If your goal to purchase a home or refinance your mortgage using your Grapevine TX Loan Rates entitlement, the interest rate you can get is a huge factor in determining the lender you choose to work with as well as what your payment will be.
The market can be volatile, and rates on loans can change daily, and can even fluctuate during the course of a day.
So what factors determine what rate you can get?
All home loan products are secured by mortgage bonds, or securities that are traded daily on wall street like stocks. Mortgage bonds are what back mortgages, including Grapevine VA Loans. Mortgage bonds are also called mortgage backed securities.
Mortgage backed securities can go up and down just like the stock market, therefore influencing all mortgage rates including Grapevine TX Loan Rates. News during the day can also cause large swings in the bond markets. Other days are calm, with little or no fluctuation. You can track market changes at our favorite market website, Marketwatch.
Because of these fluctuations in mortgage rates, it is important to make sure that when you are comparing lender’s estimates, that you compare on the same day, and preferably the same approximate time of the day. One lender’s quote on Tuesday may be very different from another’s quote on Thursday, simply because of market swings.
Once you are under contract, you can prevent exposure to market swings by securing your Grapevine VA Rates with a rate lock. The rate lock will secure the rate that was available on the day of the lock, no matter what happens in the market. Rate locks should be made for a long enough period of time that will enable you to get to closing before the lock expires, so that you can avoid expensive lock extension fees, or a charge to add additional days to the lock.
It's also important to keep in mind that there are many other things that can affect your interest rate besides what the market is doing. Your credit score, for example, can mean Grapevine TX VA Loan Rates that are slightly higher or lower.
A slightly higher interest rate can also lead to lower closing costs as your lender can pay your closing costs. What makes this possible is that the lender is paid a percentage based on the interest rate that is locked, and the percentage is higher as the rate goes up. The extra percentage is then used to pay your closing costs.
All of these factors and more can affect your interest rate. We would be honored to provide you a free, no obligation rate quote. Just give us a call in the office at 817-860-3232 and ask for our Senior Mortgage Banker, Joy Bates.
Joy can also be reached via email: cbates@legacyfinancial.com, log onto http://legacyfinancial.com to make an inquiry.
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