Looking to purchase a home or refinance using your San Marcos TX VA Loans benefits? The rate you can obtain is a big factor in determining the lender you will 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 mortgages are backed by bonds, securities that are traded on the open market like stocks. Mortgage bonds are what back mortgages, including San Marcos TX VA Loans. 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 Texas VA Mortgage Rates. News that comes out throughout the day can cause wild swings in the bond market. Sometimes, however, it is very calm with little change. Marketwatch is our favorite website for tracking market changes.
These fluctuations in mortgage rates make it essential 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 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 Texas VA Rates with a rate lock. With a rate lock, you will receive the rate you had on that day, regardless of what the market does. Rate locks should be made for a long enough 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, San Marcos TX VA Loans 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. 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 free, no obligation quote, call our Senior Mortgage Banker, Joy Bates, at 817-860-3232, visit our website: http://legacyfinancial.com or email Joy: joybates@leader1.com, and we will get back to you quick ly with an honest and accurate quote.
Comments(0)