Kansas City MO VA Rates

If you are looking to purchase a home or refinance using your Missouri VA Loan 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 at times, and Kansas City MO VA Rates can change daily, and sometimes even fluctuate during the course of a single 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. These bonds are what backs the mortgages, including Kansas City 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 Kansas City MO VA Rates. News during the day can also cause large swings in the bond markets. Other days are calm, with little or no fluctuation. You can track the market at our favorite website about the markets called Marketwatch.

 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 Tuesday may be very different from another’s quote on Thursday, simply because of market swings.

 Once you are under contract, you can prevent exposure to market swings by securing your Kansas City MO VA Rates with a rate lock. 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 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. An example is that if you have low credit score, you will receive higher Kansas City MO VA 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 free, no obligation quote, please visit KC Loan Tips or email us at DarrenCopeland@kcloantips.com or call 816-268-4025 and we will get back to you quickly with an honest and accurate quote.