Here are our current mortgage rates in California that are updated daily for both purchase and refinance transactions. Conventional-Conforming, Jumbo and FHA mortgage rates are available to those with excellent credit and to those with less than perfect credit. For over 15 years I’ve been able to deliver low mortgage rates throughout California along with fast closings and one-on-one personal service.
California Mortgage Rates:
FHA Mortgage Rates
Jumbo Mortgage Rates
We Are A Top Rated Mortgage Company:
- A+ Rating With The Better Business Bureau (BBB).
- Five Star rating on Zillow
- Five Star rating on Yelp
- Five Star rating on Mortgage101.com
- AAA rating with the Business Consumers Alliance
- Loan Officer Kevin O’Connor has over 15 year of experience in the mortgage industry.
- One-on-one service from application to closing.
We cover all of California including San Diego, Los Angeles, Santa Barbara, San Luis Obispo, San Jose, San Francisco, Sacramento, Chico and Redding. For the most up-to-date current quote for your specific loan scenario please contact me today at 1-800-550-5528 or send a request for a quote through our website (see below).
Each and every day lenders update their fixed rate mortgage terms as well as their adjustable rate mortgage terms. The most popular mortgage rates are the 30 year fixed mortgage rate and the 15 year fixed mortgage rate. Along with those options we have 10 year, 20 year and 25 year fixed mortgage rate options. As far as Adjustable Rate Mortgage options; we offer a 5/1, 7/1 and 10/1 loan term on most of our adjustable loan programs.
Home Refinance Mortgage Rates:
- Streamlined loan process
- Appraisal waiver eligible
- Fixed or Adjustable mortgage rate options
Home Purchase Mortgage Rates:
- Fast closings available; as little as two weeks
- Appraisal waivers are possible; just not as frequent as refinances
- Fixed and Adjustable mortgage rate options
The three most common loan programs in California are Conventional (Conforming), FHA and Jumbo loans. Under these three are various different types of loan options we offer our clients:
- Low down payment purchase loan programs
- Excellent credit top tier pricing options
- Loan programs for those with less than perfect credit
- Home remodel/repair mortgages
- Debt consolidation mortgage
- Mortgage loans for rental and multi-unit properties
The Mortgage Backed Securities Market And Mortgage Rates:
Mortgage rates in California originate in the Mortgage Backed Securities (MBS) market which is impacted by daily economic events, the Treasury market and the Fed. The Fed does not set mortgage rates in California; they only influence the market that determines these rates.
Something to keep in mind: If you were to compare bond market sell offs to bond market rallies you would see that the selloffs are much greater than the rallies (general speaking).
This means that mortgage rates in California tend to move higher much faster than when they move lower (all things being equal). So when it comes time to lock in your mortgage rate be sure to take advantage of market conditions rather than waiting too long.
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California Conforming Loan Limits – 2020:
For 2020 the California conforming loan limits have been raised to record highs after last years record high. Now homeowners and homebuyers have greater access to conforming loan products such as a conforming 30 year fixed mortgage or the 15 year fixed mortgage loan program. If you’re curious to see if your loan amount qualifies for a conforming loan you can visit our California conforming loan limits page to see the limits for each county in California.
One unit property:
The general limit for a non-high balance county for a one unit property is $510,400.00. This is for both fixed rate mortgage and adjustable rate mortgages.
Two unit property:
The general limit for a non-high balance county for a two unit property is $653,550.00. This is for both fixed rate mortgage and adjustable rate mortgages.
Three unit property:
The general limit for a non-high balance county for a three unit property is $789,950.00. This is for both fixed rate mortgage and adjustable rate mortgages.
Four unit property:
The general limit for a non-high balance county for a four unit property is $981,700.00. This is for both fixed rate mortgage and adjustable rate mortgages.
California conforming high balance:
The counties that are designated “high balance” have limits that go higher than the regular conforming loan limit.
Conforming Loan Qualifications – 2020:
Conforming loans are good for people with credit scores above 700; and in some instances above 680. What is a Conforming loan? A Conforming loan simply means the loan “conforms” to the underwriting standards of either Fannie Mae or Freddie Mac. Fannie Mae and Freddie mac do not make loans directly to consumers; their main purpose is to establish underwriting guidelines for mortgage lenders that lend money to consumers. Here are the general requirements for getting qualified under the Conforming loan program:
As mentioned; if you have above a 700 credit score (in some cases a 680) then a Conforming loan is something you should consider. If you have a credit score below these levels you’ll probably want to look at the FHA home loan program. It provides for better opportunities for those with less than perfect credit. FYI: all mortgage companies use your mid-credit score when qualifying (the middle of the three main credit bureau scores).
A Conforming loan can be used to purchase a Single Family Residence, Condominium, Townhome or 2-4 unit property. It cannot be used to purchase commercial, industrial or vacant land properties. Same rules apply to refinance transactions.
The property can be a primary residence, a vacation/second home or a rental property.
You can use Conforming loans for both cash out transactions and rate-term transaction (these are when you lower your interest rate and/or shorten the length of your term. ie from a 30 year fixed to a 15 year fixed).
Ideally you want your debt-to-income ratio level to be below 45%; and in some cases below 40%. However the Conforming loan program does allow debt-to-income ratios as high as 50% (case by case basis).
Private Mortgage Insurance:
If you have 20% equity or you are putting 20% down you do not need Private Mortgage Insurance (PMI) attached to your payment. What is PMI? It’s an insurance policy you pay that protects the lender in case you default on your mortgage.
If you are considering a refinance or the purchase of a home a Conforming loan might be a good fit for you; especially if you meet the above criteria. If you have any questions about Conforming loans and it’s requirements please be sure to ask.
FHA Home Loan Limits – 2020:
FHA home loan limits are bit more straightforward compared to Conforming loan limits. The Federal Housing Finance Agency (this is the department that adjusts Conforming and FHA loan limits each year).
The FHA loan limit will rise to $331,760.00. The increase was from 2019’s level of $314,827.00. In high cost areas the FHA loan limit goes increases from $726,250 to $765,525,00. The increase in FHA home loan limits will allow more homebuyers and homeowners access the FHA loan program.
Why You Should Work With JB Mortgage Capital, Inc.
FHA Home Loan Qualifications – 2020:
FHA home loans are good for people with credit scores below 680 – 700. What is a FHA loan? A FHA home loan is a loan that is backed by the Federal government in the event the borrower defaults on their mortgage. Similar to Fannie Mae and Freddie Mac; FHA does not lend directly to consumers. The loan program has specific underwriting guidelines that lenders (who lend directly to consumers) must follow.
Here are the general requirements for getting qualified under the FHA home loan program:
If you have a credit score below 680-700 then you might want to consider a FHA loan.
Similar to Conforming loans; a FHA loan can be used to purchase a Single Family Residence, Condominium, Townhome or 2-4 unit property. It cannot be used to purchase commercial, industrial or vacant land properties. Same rules apply to refinance transactions.
FHA loans differ from Conforming loans when it comes to ownership: the property can only be a primary residence. Vacation/second homes and/or rental properties are not allowed.
Like Conforming loans you can use FHA loans for cash out transactions and rate-term transactions. You can also use the FHA loan program to repair/renovate a home. Under the program the lender will provide additional money to make these repairs/renovations. The total amount you can borrower under the repair/renovation program can be greater than the value of the property.
FHA is bit more strict on debt-to-income ratios. Ideally you’ll want a debt-to-income ratio below 43% if you are applying for a FHA loan. In some cases you can go above that but obtaining an approval above 43% can be somewhat difficult.
FHA loans come with Mortgage Insurance (MI). For more details about this please be sure to check our our FHA home loan page; one of the best guides on the internet for understanding the basics of FHA loans. Basically MI is an insurance policy (similar to PMI) you pay each month (it’s added to your monthly mortgage payment) that protects the lender from a possible default by the borrower. MI is for FHA loans and on the Conforming side it’s PMI.