If you are looking to purchase a home or refinance your VA loan in Pueblo County Colorado using your VA Loan entitlement, the mortgage rate you can get is a huge factor in deciding which lender to work with as well as what your payment will be. Interest rates can sometimes change daily, and can even fluctuate sometimes during the course of single a day. So what determines the VA home loan rates in CO that you can get?
All mortgage products are backed by bonds, or securities that are traded on Wall Street like stocks. Mortgage bonds are what back mortgages, including Pueblo County Colorado VA Loans. Mortgage bonds are also called mortgage backed securities. Mortgage backed securities move up and down just like stocks, 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.
A good site where you can track the market is 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 are under contract, you can prevent exposure to changes in the market by securing your VA mortgage rate CO 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. Lock extension fees can be expensive, so rate locks should be made for a period of time that will enable you to get to closing before the lock expires. If you close after the lock expiration date, you may have to pay lock extension fees. Besides what the market is doing, there are other things that can affect your VA loan rate in CO. If you have a low credit score, for example, you may receive higher VA Mortgage Rates in CO.
Locking a slightly higher rate is also an option, in which case your lender will 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. 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 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.