When you are quoted a VA loan rate by us or another lender, you will be told that the rate could change. This is because rates really do change, sometimes multiple times per day. Rates are affected by the bond market and if the bond market moves it can cause lenders to adjust their mortgage rates during the day.

When you contact a lender and ask for a rate quote, it’s only a quote for that very moment. Unfortunately we can’t guarantee or lock the rate at that time. Before locking a rate we need a complete application and we need to determine you qualify for the loan. When a rate is locked it tells the lender or investor that we are going to use that money for a home purchase, so the money is set aside so no one else uses it. If loan officers were allowed to lock an interest rate for each client that asks, all the investor money would be set aside but rarely used. How many companies have you contacted to get a rate quote? Chances are your shopping so if you contacted five or ten, an investor would have 5 or ten times the requested loan amount set aside for one person. See what I mean?

That is why unfortunately rates cannot be locked simply because someone inquires about a rate quote.

Here at MilitaryLink LLC, we always look out for the veterans best interest. We provide you with an honest rate quote, and tell you up front that it could change. We get your application in as quickly as possible so that we are ready to lock, then, we will keep you informed about the rates so when YOU ARE ready to lock, we will lock the rate for you.

Many unethical lenders will use this to their advantage so when they earn your business, they increase your rate unnecessarily then tell you that the rate went up even if it didn’t.

When you apply with a company, and the day you get ready to lock and the loan officer tells you that the rate went up, before you lock, CALL US or another lender to get a second opinion. Calling someone else who thinks they may earn your business, will provide you with an honest and current rate lock. If it’s much lower than your current lender, chances are he’s taking advantage of you and you should find another lender.

VA Rates were at their best on Monday at 6.12% and only got worse from there. This was not a good week to lock in your VA loan. The markets continues to fluctuate and the bond market acted accordingly. We topped out the week and 6.50% but recovered slightly on Friday afternoon. We ended the week at 6.25%, about ¼ above our recommended lock. We continue to recommend a lock at 6.00%, this is a great rate to be holding for the next several years.

There continues to be uncertainty as to what the economy is going to do. In the short term I suspect it will get slightly worse, so we will continue to see fluctuations in the bond market.  If you’re looking to buy in the next couple months, I strongly suggest you get pre-qualified so you’re ready to lock at a moment notice. I think we will see 6.00% again next week.

It’s a new week, VA interest rates are on the rise this week. It is unknown how long they will remain above 6%. If you’re looking to buy a home within the next 30-45 days, I recommend you apply now and float your rate. By floating your rate it allows us to rate shop for you and when rates drop back to the 6.0 – 5.875% level we can lock you in (with your approval). Rates will remain uncertain as long as the economic crises continues to unfold. Any VA Rate at 6% should be considered a good and safe rate to lock.

We end the week where we started. On Monday rates were 6% but got a little better by the end of the day. Tuesday morning they dropped to 5.75 and remained there through Wednesday. On Thursday the rates began to rise again and hit 5.875%. The turmoil in the markets and the economic fears cause the rates to rise further this morning back to 6%.

As economic fears continue and are likely to continue in coming months, we could easily see rates rise  and fall. However, despite this fluctuation, any va rate at 6% or below Is considered a good rate and buyers should not hesitate to lock it in.