If your goal to purchase a home or refinance your mortgage using your Adams County Colorado VA Loan 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 VA home loan rates can fluctuate sometimes during the course of day, and can vary from day to day. So why does this happen, and what determines the interest rates you can get? All mortgage products are influenced by what happens on Wall Street similar to stocks. Mortgage backed-securities, or bonds, are the item on Wall Street that is connected to VA rates.
Adams County Colorado VA Home Loans are backed by these mortgage bonds. Mortgage bonds are also called mortgage backed securities. Mortgage backed securities move up and down just like stocks, therefore influencing all mortgage rates including VA Loan Rates CO. News that comes out throughout the day can sometimes wild swings in the bond market. Other days are calm, with little or no fluctuation.
Marketwatch is a great website where you can track the market. Because of these fluctuations in VA mortgage rates, it is important to compare lender's estimates on the same day, and preferably the same approximate time of the day. One lender's quote on Monday may be very different from another's quote on Wednesday, simply because of market swings.
Once you are under contract, you can prevent exposure to market swings by securing your VA Loan Rates CO 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. Lock extension fees can be expensive, so rate locks should be made for a period of time that will enable you to get to closing before the lock expires.
If you close after the lock expiration date, you may have to pay lock extension fees. Other factors can also affect your VA home loan rates in Adams County Colorado besides what the market is doing. An example is that if you have low credit score, you may receive higher VA Loan Rates CO.
Closing costs can be covered by locking in a slightly higher VA loan rate. It is possible to use a strategy to have your closing costs paid for, which enables the lender to lock a slightly higher interest rate and in return pay your closing costs for you. Your closing costs can then be paid by using this higher percentage.
As you can see, there are many factors that go into determining your Adams County Colorado VA interest rate. You can access the Denver regional VA loan center here. Or call RJ Baxter directly at 303-670-0137 for a customized rate quote and to get your VA home loan questions answered. Click here to apply online.
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