If you are looking to purchase a home or refinance using your Plano, TX 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, and VA Home Loan Rates in Plano Texas can change daily, and can even fluctuate during the course of a 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 Plano, TX VA Loans. Mortgage bonds are also called mortgage backed securities.
Mortgage backed securities are just like the stock market in that they can go up or down during the course of a day, therefore influencing all mortgage rates including VA Home Loan Rates in Plano Texas. News throughout the day can also cause swings in the bond market. Other days can be calm with little change. Marketwatch is our favorite website for tracking market changes.
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 Tuesday may be very different from another’s quote on Thursday, simply because of market swings.
Once under contract, a rate lock will prevent exposure to market changes on Plano, 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 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. For example, if you have a lower credit score, VA Rates in Plano, Texas will be slightly higher.
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. This higher percentage is then used to pay your closing costs.
All of these factors and more can affect your interest rate. For a free, no obligation quote, please visit our website: http://legayfinancial.com, email our Senior Mortgage Banker, Joy Bates: Joylynn.Bates@myccmortgage.com or call 817-860-3232 and we will get back to you quickly with an honest and accurate quote.