If your goal to purchase a home or refinance your mortgage using your Grand Prairie TX VA Mortgage 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 very rough, and Grand Prairie VA Rates can change daily or 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 Grand Prairie 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 Grand Prairie TX VA Mortgage Rates. News throughout the day can also cause swings in the bond market. Other days are calm, with little or no fluctuation. Marketwatch is our favorite website for tracking market changes.
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 Monday may be very different from another’s quote on Wednesday, simply because of market swings.
Once under contract, a rate lock will prevent exposure to market changes on Grand Prairie TX VA Mortgage Rates. 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, Grand Prairie VA Rates 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. Your closing costs can then be paid by using this higher percentage.
All of these factors and more can affect your interest rate. For a free, no obligation quote, please visit our website: http://legacyfinancial.com, and we will get back to you quickly with an honest and accurate quote.
Our Senior Mortgage Banker, Joy Bates, is standing by to assist you. She can be reached at 817-860-3232 or via email: joy.bates@leader1.com.
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