Monday, September 10, 2007

Something About California Loan Rates

According to the majority of ads for California loan rates, rates are at an all time low. Of course, they would say that, now wouldn't they! However, it is true; California loan rates are low at this time. California loan rates seemed to have been quite low than what we usually find this season.

For conforming California loan rates, interest is running between 6.125% and 6.250%. The annual percentage rates are 7.390% down to 6.363%. (The lower interest rate carries the higher APR.) These California loan rates apply to loans equal to or less than $417,000.00 and go up to a period of 30 years fixed.

For jumbo California loan rates, interest is running between 5.750% and 6.375%. The annual percentage rates are 7.282% down to 6.479%. (The lower interest rate carries the higher APR.) These California loan rates apply to loans greater than $417,000.00.

There are also low down payment mortgages associated with low California loan rates. A low down payment mortgage rate, 30 year fixed, can range from 0% to 20% and carry an interest rate of 6.875% (7.049% APR) to 6.250% (6.367% APR). While a 5 year ARM carries interest rates as follows: with a down payment of 0% (7.627% APR) to 20% (7.174% APR).

While all these California loan rates sound good, beware. The Federal Government says that lenders have been making too many risky loans and have attempted to rein them in by raising mortgage rates. But it is thought that this arrangement will only be a temporary fix' and that mortgage rates will drop again. So you may yet have time to get a good California loan rate before lenders renege on some of their risky loan deals or decide to tighten up their underwriting rules, but you may not have much time. In the meantime, mortgage rates go up and down almost daily---and that can cost you plenty!

This should motivate you to speed your mortgage application through as quickly as possible. You will have a better chance at the home you really want if you can get your loan approved quickly. Because, as you know, the lower the interest rates, the more house you can afford to purchase. With a lower California loan rate, you might be able to afford a home that costs $250,000.00 as opposed to a home you would have to settle for at $200,000.00. Take advantage of the lower interest rates now before it all changes.

Copyright (c) 2006 Darren Dunner

Darren Dunner is the author of this article. Find more information about the same at and