There isn’t an iota of doubt that California is one of the most popular and wonderful cities in American continent to live in. However, the popularity of this state has created a dearth of properties in the real estate market, as a result of which prices of real estate in CA are soaring high. A person desirous of owing a property in California is most likely to purchase loans for fulfilling his desires and doing the same would impose a huge responsibility of repaying the same along with interest amount on him. A person planning to invest in a real estate property in California must be cognizant of the present mortgage rates of the state along with the historic trends in order to take a wise decision as regards to purchase or refinance the loan amount he is willing to borrow.
Mortgage rate is essentially the rate of interest which the borrower of money has to pay on monthly basis along with repayment of principal amount of loan. Mortgage rates keep on fluctuating on day to day basis as they depend upon various factors related to national and global economy. It is pertinent for one to understand that mortgage rates in CA may vary considerably from the rates in the rest of the country or even any nearby state and one must take note of the same before applying for a mortgage loan for purchasing a property as future monthly installment payments of loan amount directly depend on these rates.
The current mortgage rate of 30 year fixed loan in California is 3.90% on an average whereas this figure is approximately 3.17 for the 15 year fixed loan. The interesting thing to note here is that these rates were 4.03 and 3.28 respectively in the month of October last year. Of course, these are just average rates that might vary from lender to lender but the astonishing fact that comes to light from these figures is that mortgage rates in CA are falling considerably despite of the increasing demand of real estate properties in this state. The lowest rates of mortgage are clearly giving a green signal to all the prospective buyers to go in for purchasing loans and the current borrowers to refinance their mortgage loans in order to get instant benefits of doing the same.
It is not just the 30 and 15 year fixed period mortgage rates that are showing a downward trend right now, the 30 year jumbo rates are showing similar trends as well. Before jumping over to the current rates of jumbo loans, one must know what a jumbo loan is and how pertinent it is, for the prospective and present borrower. Since the properties is California are a little too expensive than other American states, the prospective buyers need heavy loan amount to finance and refinance their property. Since such loans involve high amount (generally exceeding $417000), they are known as jumbo and as the lender takes huge risk while extending the loan, the mortgage rates of such loans are higher than usual rates. Presently, the mortgage rate of 30 year jumbo loan in California is 4.10% which is slightly lower than 4.12% of last quarter’s average rate.
The overall trend of mortgage rates in California is quite encouraging for prospective and present real-estate buyers looking forward to borrow or refinance loans.