When you set out to purchase a home using your Craig Colorado VA Loan benefits, the rate you can obtain is a major factor in determining which lender to choose to help with your loan as well as how much your payment will be.
The market is volatile as we all know, and Craig Colorado VA Mortgage Rates change nearly every daily, and sometimes are so volatile that they can change during the course of a day..
So how can you figure out what VA loan rate you qualify for?
All mortgage loans are backed up by mortgage bonds, or securities that are traded on like stocks. Mortgages are backed by these securities, and that includes Craig Colorado VA Loan products. Mortgage backed securities is another name for these mortgage bonds. Similar to the stock market, mortgage backed securities go up and down, which influences Craig CO VA Mortgage Rates.
Just like the stock market, economic news that is release during the day can affect mortgage rates as well. Sometimes, however, the markets stay calm, so rates move very little. A good place to track the markets is our favorite, Marketwatch.
These fluctuations in mortgage securities and rates mean that it is essential to compare lender's estimates on the same day, and preferably at generally the time of the day. For example, one lender's quoting on Tuesday afternoon may be very different from another lender's quote on Wednesday morning, because of swings in the markets.
Once under contract, it's easy to prevent exposure to market swings by securing your Craig Colorado VA Mortgage Rates with a rate lock. A rate lock means you will still get the rate you had the day you locked, whether the market goes up or down. Make sure your rate lock is made for a long enough time frame that you will be able to get to closing before the lock expires. Lock extension fees, or additional charges on the loan, may be applied if you aren't able to close before the lock expiration date, and they can be expensive!
Keep in mind that there are many other factors that can affect your interest rate aside from what the market is doing. An example is your credit score. With a lower score, for example, you will receive a higher Craig Colorado VA Loan Rate.
You can also lock a slightly higher rate and have your closing costs paid by your lender. What makes this possible is that the lender is paid a percentage based on the interest rate that is locked, and they receive a higher percentage through a higher rate. This higher percentage can then be used to pay your closing costs.
Learn more about your VA benefits at the VA Home Loan Guaranty website: http://www.benefits.va.gov/homeloans/
There are many important factors that go into determining what interest rate you can receive. We would be honored to provide you a free, no obligation customized rate quote for your situation. Just give us a call in the office at 303-670-0137 or visit our Craig Colorado VA Mortgage Rates website.
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