VA Mortgage Rates If your goal to purchase a home or refinance your mortgage using your Arapahoe Colorado 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, and interest rates many times change daily, and fluctuate sometimes during the course of single a day. So why does this happen, and what determines the interest rates you can get? All home loan products are backed by bonds, or securities that are traded on Wall Street like stocks.
Arapahoe Colorado VA Home Loans are backed by these mortgage bonds. 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 VA Loan Rates CO.
News that comes out throughout the day can cause wild swings in the bond market. 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 VA mortgage rates, it is important to compare lender's estimates on the same day, and preferably the same approximate time of the day.
For example, one lender's quote on Monday may be very different from another's quote on Wednesday, simply because of market swings. Once you go under contract, securing your Arapahoe Colorado VA Loan Rate with a rate lock will prevent your exposure to market swings. This means you will receive the rate you had on the day of the lock, no matter what the market does.
Rate locks should have an expiration date 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. Other factors can also affect your VA home loan rates in Arapahoe Colorado besides what the market is doing. An example is that if you have low credit score, you may receive higher VA Loan Rates CO.
It is also possible to lock a slightly higher rate and have your lender pay your closing costs. It is possible to use a strategy to have your closing costs paid for, which enables the lender to lock a slightly higher interest rate and in return pay your closing costs for you. Your closing costs can then be paid by using this higher percentage.
As you can see, there are many factors that go into determining your Arapahoe Colorado VA interest rate. You can access the Denver regional VA loan center here. Or call RJ Baxter directly at 303-670-0137 for a customized rate quote and to get your VA home loan questions answered. Click here to apply online.
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