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Today’s California Mortgage Rates

Today’s California mortgage rates. 30-year, 25-year, 20-year, and 15-year terms. Additional mortgage rate options are available. Contact Loan Officer Kevin O’Connor for a free customized quote.

Loan TermRateAPR
30yr Fixed Rate5.50%5.773%
25yr Fixed Rate5.50%5.824%
20yr Fixed Rate5.25%5.521%
15yr Fixed Rate4.75%5.075%
01/27/2023 assumptions

California Mortgage Rate Resources

Here are six key California mortgage rate guides and articles our clients can use to save them time and money.

California Homebuyer

The perfect guide for First-Time Homebuyers and experienced property owners.

Mortgage Calculator

Use our super-easy mortgage calculator to calculate your monthly mortgage payment.

California Refinance

In this easy-to-read article, you’ll discover our various California refinance options.

Conforming Home Loans

California conforming home loan information including each county’s home loan limit.

FHA Home Loans

The FHA home loan program is great for first-time homebuyers and/or those with less-than-perfect credit.

VA Home Loans

We offer the VA home loan program with no downpayment requirement and super low rates.

Reasons To Work With Loan Officer Kevin O’Connor

We offer mortgages throughout California including San Diego, Long Beach, Los Angeles, Santa Barbara, San Luis Obispo, Fresno, San Jose, San Francisco, Sacramento, Chico, and Redding.

Home Loan Pre-Approval

A quick pre-approval with exceptional service and low rates.

Frequently Asked Mortgage Rate Questions

As a top-rated mortgage broker in California, we believe in educating our clients about important topics related to mortgage rates. Here is a list of frequently asked questions.

What does it mean to “lock in” a mortgage rate?

It simply means that if the market moves up or down your locked-in mortgage rate will not change. If it’s not locked in then your rate can adjust with the market.

When you apply are you required to lock in your mortgage rate?

No, at least not with us. Some mortgage companies do require you to lock in your mortgage rate at the time of application and others won’t let you lock in your rate until closing (or after the underwriter approves the application).

What is a mortgage rate float-down option?

In some circumstances, we can offer clients a “mortgage rate float down” option when locking in their rate. A mortgage rate float down is when the market improves enough after you lock, that the lender decides to offer you better terms.

How should I compare online mortgage rates?

When comparing online mortgage rates between different websites it’s important to know that each website has rates listed that are based on different home loan scenarios. And some websites have dozens of lenders listed which means each one of those home loan lenders has its own loan scenario.

It’s important to keep these four facts in mind when you compare online mortgage rates.

  • The rates listed are not quotes.
  • These websites are not always providing rates for your specific loan scenario.
  • Mortgage rates are not set in “stone”, they can and often do change daily/weekly.
  • These websites make money when you “click” on a lender’s rate listing.

Online mortgage rates are basically a rough snapshot of today’s mortgage rates for a very specific loan scenario. Our website clearly displays an “assumption” link so that it’s easy to learn what home loan scenario our mortgage rates are based on.

Can you explain the difference between a fixed-rate mortgage vs an adjustable-rate mortgage?

A fixed-rate mortgage is where your mortgage rate and your payment never change.

An adjustable-rate mortgage is when your mortgage rate and monthly payment can adjust. Typically the rate and payment stay the same for a short period of time (such as 5, 7, or 10 years) and then the rate and payment adjust every year after that.

The benefit of a fixed-rate mortgage is certainty and stability. You always know exactly your mortgage rate and monthly payment amount since they never change.

The benefit of an adjustable-rate mortgage is a potential lower mortgage rate and monthly payment.

What is “qualifying income” and how does it impact your mortgage rate?

Qualifying income is the amount of money you earn that can be used to determine if the underwriter can approve your home loan application.

And yes, qualifying income does impact your mortgage rate. The more qualifying income you have the more mortgage rate options you will have.

What is a mortgage APR?

Your mortgage APR is a rate that represents the costs you are paying and the interest rate your home loan is based on. It’s important to know that not all Loan Officers calculate the APR correctly. To get your best reading of the mortgage cost, just obtain all the fees and costs in writing.

What is a “lender closing cost credit”?

Sometimes, a lender will issue a closing cost credit at closing. This credit will help reduce your closing costs (lender fees, title and escrow fees, etc.). Not every loan is eligible for this; be sure to discuss with your Loan Officer your options for obtaining a closing cost credit from your lender.

What is daily interest?

When you complete your transaction, you should know that you will pay daily interest to your new lender. This interest is charged on all new first-lien mortgages and starts the day the loan is funded.

What are Discount Points and Loan Origination fees and how do they impact your mortgage rate?

Mortgage rates can come with Discount points and/or Loan Origination fees.

These costs/fees are based on a percentage of the loan amount. So if you have a $300,000 mortgage and are paying 1 origination (or 1 discount) you are paying $3,000 in costs to obtain the quoted rate. 2 points equals $6,000 in costs.

Your mortgage rate is impacted by the presence or lack of Discount Points and/or Origination fees. The industry norm is this; the more Discount Points/Loan Origination fees you pay the lower your mortgage rate will be (to a certain extent).

The fewer Discount Points/Loan Origination fees you pay the higher your mortgage rate will be.

A mortgage lender might or might not charge points and/or Origination fees. Top-rated mortgage brokers provide a breakdown of costs/fees for every loan they provide. If you have questions be sure to ask your Loan Officer.

What is the Loan Estimate and does it show your mortgage rate lock?

The Loan Estimate is a document that is provided by your mortgage broker and it discloses your mortgage rate, your term length, if you have impounds, and your costs/fees. It also has information about your APR, if the loan can be serviced by another lender and more.

Some home loan applicants think that if they receive a Loan Estimate then their rate and terms are “locked in”. That is not the case unless the “YES” box is checked at the top of page one of the Loan Estimate next to “RATE LOCK”.

If you think your rate and terms are locked then double-check the “YES” box is checked.

When locking in a mortgage rate how important is your credit history?

Very important! Review your credit history before you apply for a mortgage loan and lock in your rate. And the key to getting a low mortgage rate is a high credit score!

Understanding what is on your credit report will give you the vital information you need to shop for a new loan. If there are any errors, be sure to correct them especially if the errors are causing your interest rate to go up.

If you have credit card balances above 35% of your credit limit, try to pay them down 60-90 days before applying for a home loan. Once you go above a 35% ratio, it negatively affects your credit.

Loan Officer Kevin O'Connor

About The Author

Loan Officer Kevin O'Connor has over 17 years of experience as a Mortgage Loan Originator and is a trusted resource for mortgage education and information. He's licensed by the state of California and the Nationwide Mortgage Licensing System. He has a top rating with the Better Business Bureau, Google, Yelp, and Zillow. You can contact him at 1-800-550-5538. CA DRE #01499872 / NMLS #247447

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