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Looking for a mortgage loan in California can be complicated, but if you do your homework, it can save you money. There are several things you need to know in order to find the mortgage loan that is right for you. To understand the costs associated with a mortgage loan it is important to know the rates and types of mortgage loans available in California.

Loan.com is an excellent resource when your goal is to save money and minimize costly errors that could affect you now and in the future. With an assortment of free loan calculators, an in-depth explanation of the Borrower's Bill of Rights and even a Loan Analyzer tool, Loan.com is the first and last stop for the borrower that wants to be informed and up-to-date before choosing a loan. Based on the most recent data, mortgage rates for thirty year fixed mortgages are at historic lows, and the amount of points charged varies per lender. There are various types of mortgage loans available in California from numerous reputable lenders. You will find fixed rate mortgages; adjustable rate mortgages (ARM), home equity loans, home equity lines of credit (HELOC) and more. It is very important to consider the type of loan you need to meet your current financial situation and consider your future needs.

The rates and points on each mortgage loan will vary. As with any major consideration, it is imperative to consider all of your options and utilize all of the resources available to make an educated financial decision. Some points to consider are:

  1. If you are refinancing, know your current interest rate vs. the interest rate on the new loan.
  2. Do the math - just because the interest rate is lower, doesn't mean it will save you money in the long run.
  3. Shop for the best rates - not only by internet or newspapers, but also by going to several lenders, meeting the loan officers and getting information about interest rates, fees, points and other charges in writing so you can compare.
  4. Know the tax advantages and disadvantages, and if you plan to move within 2 to 3 years be sure to calculate whether or not the loan will be a good value for you.

The 5/5 & 5/1 Adjustable Rate Mortgage

This mortgage type offers a stable payment and interest rate for the first five years. In the sixth year the interest rates, and therefore the payments, are adjusted every five years for the 5/5 arm and every year for the 5/1 arm.

Fixed Rate Mortgage

This is your parent's mortgage loan. Prior to the internet, when most people stayed at the same job until retirement and families weren't as mobile as today; this loan was the epitome of stability. In this loan, the interest rates and payments stay the same for the term of the loan.

Mortgage Refinancing in California

In some instances, refinancing your current mortgage loan can help you lower your mortgage payment. Borrowers can borrow against the equity built up in their home at a lower cost than they can from other sources. Like most mortgage interest, another benefit to mortgage refinancing is that if you pay off credit cards, the interest you pay will now be tax deductible.

For the most up to date loan rate, the U.S. Federal Reserve, Freddie Mac, and the Interest Rate Outlook from RealEstateABC.com are exceptional resources. The Rate Directory on Loan.com allow consumers to search for mortgage rates while at the same time flagging those mortgage lenders that abide by the Borrower's Bill of Rights and are in good standing with the Better Business Bureau. You should also use RealEstateABC's ABC Values™ tool to check what the current home values are in California.

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