If you are looking to purchase a home or refinance using your Southlake 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 Laredo, TX VA Loan 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. Mortgage bonds are what back mortgages, including Laredo, Tx VA Loans. 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 Laredo, Tx VA Loan Rates. News during the day can also cause large swings in the bond markets. Sometimes, however, it is very calm with little change. You can track the market at our favorite website about the markets called Marketwatch.
It is important to make sure that when you are comparing lender’s estimates, because of possible market fluctuations, that you compare on the same day, and preferably the same approximate time of the day. One lender’s quote on Monday may be very different from another’s quote on Wednesday, simply because of market swings.
Once under contract, a rate lock will prevent exposure to market changes on Laredo, TX VA Mortgage Rates. The rate lock will secure the rate that was available on the day of the lock, no matter what happens in the market. 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. Your credit score, for example, can mean Laredo, TX VA Loan Rates that are slightly higher or lower.
A slightly higher interest rate can also lead to lower closing costs as your lender can pay your closing costs. This is possible because the lender is paid a percentage based on the locked rate, with the percentage being higher as the rate goes up. Your closing costs can then be paid by using this higher percentage.
There are many factors that affect VA rates, as you can see. For a free, no obligation quote, please visit our Laredo, TX VA Loan Rates website, and we will get back to you quickly with an honest and accurate quote.
Call Joy Bates with the Legacy Group at 817-860-3232 for more information or email her: firstname.lastname@example.org