If your goal to purchase a home or refinance your mortgage using your Allen TX VA Loan 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 volatile at times, and Allen TX VA Loan Rates can change daily, and sometimes even fluctuate during the course of a single 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. Bonds are the investment instruments that backs mortgage, including VA Loan products. 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 Allen TX VA Loan Rates. News throughout the day can also cause swings in the bond market. Other days are calm, with little or no fluctuation. You can track market changes at our favorite market website, Marketwatch.
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 you are under contract, you can prevent exposure to market swings by securing your Allen TX VA Rates with a rate lock. The rate lock will secure the rate that was available on the day of the lock, no matter what happens in the market. 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.
Keep in mind that there are also many other things that can affect your VA rate besides what the market is doing. For example, if you have a lower credit score, Allen TX VA Loan Rates will be slightly higher.
A slightly higher interest rate can also lead to lower closing costs as your lender can pay your closing costs. This is possible because the lender is paid a percentage based on the locked rate, with the percentage being 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 customized quote, please visit our website: http://legacyfinancial.com, and we will get back to you quickly with an honest and accurate quote.
You may also reach our Senior Mortgage Banker, Joy Bates, at firstname.lastname@example.org or 817-860-3232.