The California housing market can be a great experience for investors as well as new homeowners. The housing market is super competitive and pricey in coastal areas and as well as inland neighborhoods for a variet of reasons. However, California mortgage rates are pretty stable and sometimes lower in comparison to typical jumbo or alternative income documentation loans. Rates go up and down through the years, but you hardly ever see price volatility that sellers or buyers experience with the homes on the market.
With that being said, there's many California home loan options to choose from as well as the interest rates and associated terms. Borrowers will quickly realize that specific home loans offered here are among the best choices for them and their situation.
For example:
- A first-time homebuyer in Sacramento
- A professional couple buying a duplex in Long Beach
- A homeowner seeking to refinance their loan in Orange County
- A successful business owner buying a luxury home in Newport Beach
- A self-employed homebuyer in the San Fernando Valley
- A military veteran purchasing a home in Corona
- A long-time resident seeking a home equity loan in Los Angeles
California Home Loan Options
All of these borrowers and their unique situation may demand a special type of loan, with varying rates of interest. Here's some more examples that California borrowers may decide are a viable solution below:
A professional couple may choose a conventional loan when they have credit scores over 700. The reason is these usually offer the best interest rates and lowest fees in California.
A person who is self-employed may have large tax write-offs reducing their qualifying income may find a California bank statement mortgage the ideal financing solution.
A first-time homebuyer with middle credit scores between 620-660 and minimal funds for down payment and closing costs may decide an FHA loan is the best choice.
A homeowner who's refinancing may opt to go with a 20 year or 15 year fixed mortgage enabling them to build equity faster and pay the loan balance off quicker.
Someone purchasing a luxury home in South Orange County well over a million dollars will likely need a jumbo mortgage with down payment options of 5, 10 and 15 percent down. This same person also has an option to pay interest only with an interest only mortgage if they choose to do so to keep their monthly paymenbt down in case of unstable income from a mini-recession.
An investor wants to buy a triplex in San Diego County for 1.5 million shoudl review the maximum loan limits for a 2-4 unit income property in California with down payment scenarios. They also can compare that to the FHA multi-unit maximums in California to figure out which one is better.
The great features of VA loans, which allows 100-percent financing up to a certain amount, are what eligible veterans and those presently serving in the military will enjoy. VA mortgage rates throughout the country provide borrowers with the best rates.
California home equity loans or HELOCs (home equity lines of credit), are a second lien against the home and commonly used to upgrade a room(s) or improve part of the property (and ADU for example) to maximize its value.
Locating the best mortgage lenders and rates in California
Just because a mortgage lender offers the same rates as the first company you inquired with, you need to compare the fees and APR too. If fees are important, ask them for a Loan Estimate or to send over all fees via email connected to the loan. Sometimes the difference is minimal and sometimes not. In addition, you want to work with an experienced loan originator so the mortgage process flows smoothly and doesn't become a stressful horror story.
To learn what mortgage interest rates California lenders will give you, contact a handful of lenders and ask what interest rate they would offer with your credit score, loan amount, and type of loan you're considering. They can then quote you a rate according to today's mortgage rates.
Many times lenders and loan officers are very busy so you can also inquire for a rate quote using their online form to request a individualized quote from several lenders. It's free, there's no commitment, so why not give it a try!