Staying on top of mortgage rates is essential for those looking to refinance a current mortgage or those looking to purchase a new home. We encourage you to review our current Conforming and FHA loan rates also scroll down to check out our monthly updates. Mortgage rates in 2019 have been in a range for most of the year (as of March 1st 2019) and well below the highs from Sept/Oct/Nov 2018.
Tips On Obtaining The Best Mortgage Rate in 2019:
- Work with reputable mortgage companies. Ones with at least an “A” rating with the Better Business Bureau.
- Ask what are the “total” fees; for everything. Points, Origination, Lender and 3rd party fees. Once you have that number then ask for a breakdown into those categories.
- Make sure you receive your lock confirmation in writing. Never assume your mortgage rate is locked.
- Ask questions; lots of them. If your Loan Officer avoids answering your questions then find a new Loan Officer to work.
JB Mortgage Capital, Inc.:
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
Important Mortgage Rate Terms
Mortgage Backed Securities:
Mortgage Backed Securities (aka MBS) are the financial instruments that consumer mortgage rates are based on. The 10 year Treasury does not “set” mortgage rates however it does influence the direction of the MBS market. Sometimes they move in the same direction and sometimes they don’t.
Loan To Value Ratio:
The Loan To Value Ratio (LTV) is the amount of money you are borrowing compared to the value of the home. An 80% LTV means you are borrowing 80% of the value of the home. The higher the LTV the higher the cost and/or interest rate. A LTV below 60% will give you the best terms.
Debt To Income Ratio:
Debt To Income Ratio (DTI) is your monthly income compared to your total debt payments (including your housing costs; property taxes and insurance included). Ideally you would like to see your DTI below 40%; however approvals can be obtained for Debt to Income ratios above 45%.
Asset reserves is the amount of money you have deposited in an account. This is in addition to your down payment (if you’re purchasing a home). The account could be a checking, savings, 401k, stocks etc. Having asset reserves is not a requirement for most Conforming and FHA home loans.
Middle Credit Score:
In 2019 mortgage companies use your middle credit score of the three major credit bureaus: TransUnion, Equifax and Experian. Keep in mind that the consumer credit scores you see on credit watch type websites are most likely going to be different then the credit scores received by lending companies.
A pre-approval is when a Loan Officer reviews your application and documentation and “pre-approves” the loan prior to an underwriter reviewing the application and documentation. Some Loan Officers will go the extra step and obtain an AUS approval (Automated Underwriting System).
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2019 Mortgage Programs At JBMC, Inc.
FHA Home Loans:
We offer a wide variety of FHA home loan programs. If you have less than perfect credit and/or a small downpayment this loan program might be a great fit for you. If you currently have a FHA home loan then you’ll want to check the 2019 FHA Streamlined Refinance program. Super easy and super fast: no income documentation, no appraisal and low mortgage rates. If you have a credit score below 680 then a FHA loan might be right for you.
Conforming Home Loans:
From a 10 year fixed to a 30 year fixed interest rate – we have all the available Conforming loan programs for your next home purchase or home refinance. 2019 Conforming loan limits were recently raised and because of the recent increase more borrowers will qualify for Conforming loans. If you have a 5% down payment (or 5% equity for refinances) and a 680 or higher credit score then a Conforming loan might be right for you.
Conventional Home Loans:
Sometimes the terms Conventional and Conforming get mixed up with both consumers and Loan Officers. Not all Conventional loans are Conforming loans but all Conforming loans are Conventional. For those mortgages that do not fit our Conforming loan programs we also offer many different Conventional loan product options that were updated for 2019.
Jumbo Home Loans:
JB Mortgage Capital, Inc. has a great selection of Jumbo home loan programs for those looking to purchase or refinance their existing mortgage. We have both fixed rate mortgage and adjustable rate mortgage options. If your loan amount can fit in the Conforming High Balance program great; if not we’ve got you covered under are various Jumbo options.
Money Saving Mortgage Tips For 2019
Mortgage Tip #1:
Never assume your interest rate is locked in; make sure you received written confirmation. You should also receive an updated Loan Estimate once your interest rate is locked (look for the “Locked” box at the top right corner of the first page. When you obtain your quotes ask each Loan Officer when will the interest rate be locked in and for how long.
Mortgage Tip #2:
Make sure you turn in your documentation in a timely manner. If your interest rate is locked it’s only locked for a certain period of time. Usually its for 30 days however in some cases its 15 and others its 45 . That means you have a limited amount of time to get everything done. Delays might trigger a lock extension which might cost you thousands of dollars in additional fees.
Mortgage Tip #3:
You should read all the loan documents you sign at closing however if you only read just a few make sure you read the “Note” and the ‘Closing Statement”. Between these two documents you’ll see the terms of the loan: interest rate, terms, fees etc. Please take your time to review these important documents and if you have questions be sure to ask your Loan Officer.
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Events That Shaped Mortgage Rates In 2019
In January 2019 mortgage rates were moving lower; a trend that started in late November 2018. By the end of January 2019 mortgage rates hit their lows and established a range that pushed into March 2019.
- The Government Shutdown: This started in December and continued into January 2019. This most recent government shutdown was the longest on record. The good news was that it did not affect many mortgage applications. During this time the economy slowed and mortgage rates moved down to the low-mid 4% range (30 year fixed conforming loans).
- China Trade Tensions and Tariffs: Many analyst and investors blame the slow down in the economy on the trade war with China. Heading into 2019 it appeared the situation was getting worse but by the end of February there were various news reports that claimed the two sides were getting closer to a deal.
- The Economy: Always the most important thing when it comes to mortgage rates. In 2019 we’ve seen a mixed bag of reports; some showing economic strength while others showing considerable weakness.
- The Fed: Prior to 2019 the Fed had a “hawkish” stance with respect to the economy however as we pushed further into 2019 that changed to a a “dovish” stance after the stock market sold off significantly.
2019 Mortgage Rates
October 2019 Mortgage Rates
November 2019 Mortgage Rates
December 2019 Mortgage Rates
Mortgage Rate Forecast 2019
We’re not a huge fan of “predicting” mortgage rates. There are far too many variables that go into consumer mortgage rates that make it difficult at best to predict or forecast mortgage rates in 2019. The US economy, the global economy, the Fed, Washington DC, Lender volume requirements and more all play a part in the direction of mortgage rates in 2019.
Our general belief is that mortgage rates will remain below their 2018 highs during 2019. And if the economy continues to slow we may see a move below the January 2019 lows later in the year.
Great Mortgage Resources For 2019
Mortgage Professionals of America:
Another online magazine that provides good insight into the mortgage industry. Mortgage Professionals of America is an industry trade magazine but they do have some good consumer information.