Determining your VA loan payment and interest rate is one of the most important things when choosing lender. The Jefferson County CO VA loan interest rate depends on a number of factors. The market can be volatile, and interest rates many times change daily, and fluctuate sometimes during the course of single a day. What causes this, and what factors determine the VA loan rate that you can get?
All home loan products are backed by bonds, or securities that are traded on Wall Street like stocks. Jefferson County 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.Marketwatch is a great website where you can track the market. Because these fluctuations can happen throughout each day, 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 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 Jefferson County 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. 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 high credit score, you may receive lower VA Loan Rate in CO. Closing costs can be covered by locking in a slightly higher VA loan rate. The lender makes a percentage based on the rate lock which can then be applied to your closing costs. 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 Jefferson County CO VA home laon 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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