California Mortgage Rates

California is an economic powerhouse and home to the hottest real estate markets in the U.S. Homes in Ventura, for instance, can command prices in the $4.5 million range according to Trulia. Surprisingly, mortgage rates across the state are at nationwide levels.

At the rate that they are going, today’s mortgage rates are only good while they last. If you are looking to buy a home in California, here’s how you can take advantage of the best rates.

Buying Homes in California

Not all areas in California have multi-million homes. In Plumas, homes hover in the $99,000 territory. For sure, other areas in the state can accommodate homebuyers looking to make the most of their money without breaking the bank or dipping into their retirement funds.

These homes can be financed with reasonably-priced mortgages at affordable rates and fees.

For a one-unit home in California, the maximum conforming loan limit is $424,100 while high-cost counties have a ceiling of $636,150. Scores of California counties have median sales price below the basic loan limit. FHA loans offer a lower basic loan limit with $275,665 for single-family homes and adopt the conforming loan limit ceiling for high-cost areas.

Rates on conventional loans and FHA loans may have little differences but the latter tend to be more forgiving when it comes to credit scores and income of borrowers, especially first-time homebuyers.

California Mortgage Rates

There are sites online that enable you to look up prevailing mortgage rates in your area or where your home is located. You can use these quoted rates to calculate your monthly payments based on your projected down payment, loan amount and loan term using online calculators.

Enter your zip code at mortgagesum.com to get a run-through of rates and calculate your monthly loan payments using its various mortgage loan calculators. Just remember that monthly payments are made up of the principal + interest portion of the loan and exclude property taxes and homeowners’ insurance.