If you are looking to purchase a home or refinance using your Texas VA Rates 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 Texas VA Rates can change daily, and can even fluctuate during the course of a day.
So why does this happen, and what determines the interest rates you can get?
All mortgage products are backed by bonds, or securities that are traded on wall street like stocks. Mortgage bonds are what back mortgages, including Texas VA Loans. Mortgage bonds are also called mortgage backed securities.
Mortgage backed securities can go up and down just like the stock market, therefore influencing all mortgage rates including Texas VA Loan Rates. News throughout the day can also cause swings in the bond market. Sometimes, however, it is very calm with little change. Marketwatch is our favorite website for tracking market changes.
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 Wednesday may be very different from another’s quote on Friday, simply because of market swings.
Once under contract, a rate lock will prevent exposure to market changes on Texas 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.
It's also important to keep in mind that there are many other things that can affect your interest rate besides what the market is doing. An example is that if you have low credit score, you will receive higher Texas VA Mortgage Rates.
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.
There are many factors that affect VA rates, as you can see. For a customized quote, please visit our website: http://legacyfinancial.com, and we will get back to you quickly with an honest and accurate quote.
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