Are you looking to buy a new home, or refinance your existing home mortgage using your Wisconsin VA Loan entitlement? If this is your goal, the interest rate you can get plays a majoy role in determining the lender you choose to work with as well as what your monthly payment will be.
Today's market can be very volatile. In fact, interest rates often times change daily. They follow the market and fluctuations can change a rate several times during the course of a single.
Let's take a look at why this occurs and what will determine the interest rate on your Wisconsin VA Home Loan.
It is important to understand that all long term mortgage products are backed by bonds, or securities, and traded on wall street just like stocks. Your Wisconsin VA Loan is backed by Mortgage bonds. Mortgage bonds are also referred to as Mortgage Backed Securities.
Similiar to the Stock Market, Mortgage Backed Securities (being traded on the open market)can fluctuate throughout any trading day and influence all mortgage rates, including the VA Loan Rates in Wisconsin. News reports throughout the day can cause movement in the Bond Market. Depending upon the news, the market can swing either way. If you are interested in tracking the market, websites such as Marketwatch can be helpful. An un-scientific approach to monitoring the Wisconsin VA Loan rate is (typically) when the stock market is doing good, long term interest rates tend to increase. Basically, when stocks are hot, investors take their money out of bonds and invest in stocks, and visa verso. More investment in Bonds typically equates to lower interest rates.
What is important for the Wisconsin VA Loan shopper is to be mindful when comparing VA Mortgage rates. Keep in mind that when you are comparing lender's estimates, you compare on the same day, and preferably the same approximate time of the day. Lender A's quote on Tuesday morning may be very different from Lender B's quote on Thursday afternoon, simply because of market swings.
Once you have decided who you will be working with for your Wisconsin VA Home Loan, and if a purchase transaction, your are under contract; your exposure to market swings can be prevented by securing your Wisconsin VA Loan Rate with a rate lock. A typical rate lock period is 30 days. Longer and shorter periods are available, so check with your VA Loan professional and inquire about your options. Be sure to allow ample time for your transaction to be completed so you can avoid expensive lock extension fees.
Keep in mind that there are other variables that come into play when determining your VA Loan Rates WI. For Example: Many Lenders have a rate adjustment for lower credit scores, which will result in a higher Wisconsin VA Loan Rate.
If you are a bit short on cash after paying for inspections, the earnest money deposit and other costs; It is possible to request a slightly higher rate and have your lender pay your closing costs. This is possible because the investor pays the lender a percentage based upon the locked interest rate. If the percentage is slightly higher, additional funds can be available to pay your closing costs.
There are several factors in determining a Wisconsin VA Loan rate. We are happy to provide a no-cost mortgage consultation. If you would like to discuss you options or desirs a customized quote, please visit our VA Home Loans
Portal, give us a call, or simply shoot us an email. We will get back to you quickly with an honest and accurate quote.
On behalf of myself and my Team, we hope you have found this information helpful. If you would like to compare Wisconsin VA Home Loans and Wisconsin Conventional Loans, please follow this link.