May 31st, 2015 6:36 AM by Joan Rusco
VA mortgage rates in the upper midwest are on the move. The rates we find for our clients have increased, then decreased, then increased again.
One of the first questions you may have when coming to us for your Minnesota or North Dakota VA mortgage loan is “what’s the rate?”. This is a question that takes some investigation to answer. So let’s take a look at where we stand this month.
There are so many factors influencing the rate you will get on your VA loan but let’s start where you have little control, the bond market. If you want to see what’s happening to mortgage rates the best indicator is the ten year U.S. Treasury Bill. In recent weeks we’ve seen a slight uptick in the yield. Likewise we’ve seen some increase in mortgage rates. No sooner had we watched this than some depressing economic news came out pushing the rate downward. At the end of the month of May the ten year treasury bill closed at it’s lowest rate in 4 weeks. But this is just one piece of a very complex puzzle. Your mortgage rate will depend also on things you do control: credit score, credit history, amount of credit, length of credit, amount of income, money in the bank. All of these impact the VA loan rate available to you.
If you have a very high credit score, say in the upper 700’s, you’re going to have the best rates available. If your score is in the 600’s your rate will be somewhat higher because this indicates to lenders you may have had some trouble managing money. If you have a lot of credit card debt, car loan debt, student loan debt this may impact the rate you can get. If, on the other hand, you have hardly any debt and a good income you’re going to do better.
We wish we could answer the question about mortgage rates on our first contact but it’s impossible to do so without knowing your credit history. We can give you a general idea. For instance, we can tell you that mortgage rates as of this writing are generally (very generally) speaking in the low 4% range. In a few days they could be in the 3’s or maybe inched up into the high 4’s. Rates change weekly, daily, even hourly. We can also tell you that historically speaking rates are extemely low. Many forcasters expect that to change and not for the better.
There’s a line in a movie we recently saw that may capture where we stand today. “A short time from now this will seem like a long time ago”. If you are ready to buy a home or refinance your existing mortgage using your great VA benefits don’t let the grass grow under your feet. Call us at VALoansMN and let’s get to work so you can tell people a short time from now how rates were so low a long time ago!