If you are looking to purchase a home or refinance using your Euless 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 Prosper TX VA Rates can change daily, and can even fluctuate during the course of a day.
So why is this, and what determines what interest rates are?
All mortgage products are backed by bonds, or securities that are traded on wall street like stocks.
These bonds are what backs the mortgages, including Prosper Texas VA Loan products.
Mortgage bonds are also called mortgage backed securities.
Just as the stock market can go up and down during a day, so can mortgage backed securities, therefore influencing all mortgage rates including Euless Texas Rates.
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 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 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 Prosper TX VA Rates 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 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.
Another important thing to keep in mind is that there are many things that can affect your rate besides what the market is doing.
For example, if you have a lower credit score, VA Rates in Prosper Texas will be slightly higher.
It is also possible to lock a slightly higher rate and have your lender pay your closing costs.
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.
The extra 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 more information visit http://legacyfinancial.com or call 817-860-3232 and ask for Joy Bates.
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