California Mortgage

California has a large variety of mortgage products to select from. Most of the loans issued in the state are jumbo loans because of the housing prices. However, standard fixed rate loans, adjustable rate loans and balloon loans are all granted in the state. FHA backed loans are available with different programs for first time buyers and poor credit mortgages. VA and VA jumbo loans are issued in the state. The California Housing Finance Agency has special programs for people with low to moderate incomes so that they can obtain a mortgage.

California Mortgage Rates

California mortgage rates are double that of the national median level. In some areas the mortgage rate can be triple of the national average. This has to do with loan risk. Since a majority of loans issued in California are jumbo loans, the rates are considerably higher. Jumbo loans backed by Fannie Mae or Freddie Mac may have slightly lower rates. Other factors that will determine mortgage rates include:

  • Employment and Income
  • Credit Rating and history
  • Loan type and property value
  • Type of loan and if mortgage insurance is purchased
  • Type of lending institution


California Refinance Rates

California refinance rates are higher than in other parts of the United States but comparable to the rates for first time mortgages in the state. Because of fluctuating house values an appraisal may be required on the home before refinancing. Refinancing done for the purpose of consolidating bills will have a higher rate than one that is to reduce interest rates. Qualifying procedures remain the same for a refinance loan as they do with an initial mortgage. Credit and income may play a large factor in the final rate.

California Mortgage Brokers And Lenders

California does not restrict the types of companies that can offer mortgages in the state. The only requirements are that they are registered to do business in California and comply with financial legislation. Credit unions, private lenders, internet lenders and local and national banks can all offer loans. Loans in California fall under Deed of Trust laws and a trustee must be used to finalize the loan. Lenders wishing to offer FHA or VA backed loans in the state must meet certain guidelines.