Current Mortgage Rates:
Overall mortgage rates are at great levels as we move further into the third month of 2019. Six months ago it appeared the 30 year fixed was going to move as high as 6% - 6.5%. However the market reversed course late November 2018/early December 2018 and since then we've generally seen 30 year fixed mortgage rates below 4.50%. Current mortgage rates in California are near their one year low as we near Spring. As mentioned 30 year fixed rate are below 4.50% in addition to that we're seeing 20 year fixed mortgage rates below 4.25% and 15 year fixed mortgage rates are below 4.00%. With most mortgage companies; Conforming fixed rate mortgages are more attractive right now, compared to Adjustable Rate Mortgages (ARMs). If you must get and Adjustable Rate Mortgage make sure you keep your costs low and avoid ARMs that have a pre-pay penalty (most don't but you'll need to double check that with the Loan Officer).
FHA Home Loans:
A popular loan program among first time home buyers and those with less than perfect credit is the FHA home loan program. Especially the FHA Streamline Refinance program which is one of the best refinance programs. The Federal Housing Administration has done an excellent job in trying to create more afforable and more accessible loan products for those that might not be qualified for traditional loan programs. Not many people know this but FHA does not have a minimum credit score. Lenders that offer the FHA home loan program generally put an "overlay" for a minimum score however with some lenders that is as low as 520-560. If your score is below 580 you'll have to put down 10% if you are buying a home or if you are refinancing then you'll havre to have at least 10% equity in the home.
Find A good Lender:
If you are looking for a new home loan; to purchase a home or refinance a current mortgage be sure to locate a good lender with an excellent reputation. Stay away from those with excessive bad reviews or companies that just opened up and have brand new Loan Officers. Obtaining a mortgage is the largest financial transaction most Americans will ever do. It's vital you have a Loan Officer you can trust and mortgage company that is very reputable. Those mortgage companies with lots of bad reviews have them for a reason. And the Loan Officer you work with should have years of experience and open to answering any questions you might have. Including questions about the mortgage rate, loan term and loan process.
