If you are looking to purchase a home or refinance using your Texas VA Loan benefits, the rate you can obtain is a huge factor in determining which lender you choose as well as what your payment will be.
The market can be volatile, and Gainesville TX VA Mortgage Loans many times change daily, and fluctuate sometimes during the course of single a day.
So why is this, and what determines what interest rates are?
All home loan products are secured by mortgage bonds, or securities that are traded daily on wall street like stocks. These bonds are what backs the mortgages, including Texas VA Loan products. Mortgage bonds are also called mortgage backed securities.
Mortgage backed securities are just like the stock market in that they can go up or down during the course of a day, therefore influencing all mortgage rates including Gainesville TX VA Mortgage Loans. News that comes out throughout the day can cause wild swings in the bond market. Other days can be calm with little change. You can track the market at our favorite website about the markets called Marketwatch.
It is important to make sure that when you are comparing lender’s estimates, because of possible market fluctuations, that you compare on the same day, and preferably the same approximate time of the day. One lender’s quote on Wednesday may be very different from another’s quote on Friday, simply because of market swings.
Once you are under contract, you can prevent exposure to market swings by securing your Gainesville TX VA Mortgage Loans with a rate lock. This means you will receive the rate you had on the day of the lock, no matter what the market does. 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. For example, if you have a lower credit score, Gainesville TX VA Mortgage Loans will be slightly higher.
Your lender can also pay your closing costs by locking in a slightly higher interest rate. This is possible because the lender is paid a percentage based on the interest rate that is locked, and the percentage is higher as the rate goes up. This higher percentage is then used to pay your closing costs.
As you can see, there are many factors that go into determining your interest rate. For a customized quote, please visit http://legacyfinancial.com, call Joy Bates at 817-913-5557 or email her: joybates@leader1.com and we will get back to you quickly with an honest and accurate quote.
Comments(0)