Determining your VA loan payment and interest rate is one of the most important things when choosing lender. The Fort Carson CO VA loan interest rate depends on a number of factors. The market can be volatile, and VA home loan rates can fluctuate sometimes during the course of day, and can vary from day to day.
So what determines the VA home loan rates in Fort Carson CO that you can get? All mortgage products are influenced by what happens on Wall Street similar to stocks. Mortgage backed-securities, or bonds, are the item on Wall Street that is connected to VA rates.
Fort Carson Colorado VA Home Loans are backed by these mortgage bonds. Mortgage bonds are also called mortgage backed securities. Just like the stock market, mortgage bonds go up and down with the market, therefore influencing all mortgage rates including VA Loan Rates CO.
News stories that come 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.
One lender's quote on Tuesday may be very different from another lender's quote on Wednesday, because of market swings. Once you go under contract, securing your Fort Carson 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. 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. 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 Fort Carson 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.