Mortgage Interest Rates Santa Clarita

It seems mortgage interest rates Santa Clarita are the main concern to a person buying a new home in the area. Well, while many focus on the rate it cost them thousands of dollars in opportunity. In this article we will discuss not only how to get the lowest mortgage rates Santa Clarita, but also how to focus on the entire experience and thus save thousands possibly.

Most borrowers really don’t want the lowest rates. They just think they do. Some low rates would come from a 1 year adjustable loan that would have an extremely low rate. Another example is a 10 year mortgage. Again, a real low rate but the payments are high due to the loan being paid back in 10 years vs the normal 30 years.

FHA Home Loan Santa Clarita

FHA loans are made by a lender but insured by FHA. FHA does not make loans, only insures them. The lender is covered by the insurance in case you do not make your payments and thus offer a lower rate on your loan due to the reduced risk. So the home buyer sees a rate advertised and immediately thinks that is the rate they want. What they do not understand is the added cost of the FHA insurance.

The FHA loan would have a 1.75% origination cost added to the loan the day you get it and also a 0.85% yearly cost spread over your monthly payments. This could end up making your low rate loan have a higher payment that a high rate loan. If you are applying for an Santa Clarita FHA home loan or a FHA home loan Valencia, you will want to compare the final payment amount to a conventional loan.  Again, getting the lowest mortgage rates Santa Clarita might not always be the best option.

If you are a Vet, you could get a VA home loan Santa Clarita and because VA insures the payments, you get a reduced rate. A senior over the age of 62 could get a reverse mortgage Santa Clarita and rate doesn’t matter so much because there is no monthly payment.

So what is the answer to getting a low rate mortgage Santa Clarita? You can see from some of the information already provided, sometimes the absolute lowest rate is not a good option. Let’s discuss some of the good options for you to consider.

Santa Clarita Mortgage Companies

The single way to get a low rate is to choose your lender wisely. You don’t want the lowest rate, you want a good rate with a great lender. Let’s say you begin working with the Santa Clarita Realtors in house lender. The 1st thing you will find is you did not get several rate quotes and thru out the process you will have doubts about the rate you are getting. Do yourself and the Realtors lender a favor. Go get some other rate quotes so you know what you are getting is fair.

Your Credit

The best mortgage rates Santa Clarita will go to those borrowers with a FICA credit score above 720. Before you ever go visit a property to buy, get your credit report. The score is important but also the other items on it. If you have student loans that have deferred payments, they will have to be assigned a payment amount in the qualification process. If you have collection items, they will need to be paid prior to the loan closing.

Getting a new home loan Santa Clarita can be a challenge. Understanding the process will help you not only get a lower rate but also get approved. Getting your credit report all squared away before you apply will save you thousands of dollars. Do not let a prospective lender run your credit. You provide the lender giving you the quote your report you got on your own. This gives them your score without them running credit and saves a hit on your score for the inquiry.

Down Payment

If you have at least 20-25% to put down on a new home purchase, you will get the best rates. If you do’n have the 20% you will not only get a higher rate but also get mortgage insurance added to the payment. Let’s say you are doing a refinance Canyon Country. You will get the best rates if you have 20% or more equity in the property. A refinance Lancaster or refinance Palmdale would have the same requirements.

What Is a Good Rate

We recently did a mortgage refinance Santa Clarita on a 30 year fixed with a rate of 3.875%. Also we did a purchase mortgage Valencia at 3.25% that had a 15 year loan on it. Last thing that we did we got $200,000 cash out refinance mortgage Valencia that got a 3.875% rate for a 30 year fixed loan. But we saw a loan go thru for a purchase in Saugus at 5.25% recently. It just shows you the wide variance that are mostly driven on the borrowers credit and the lender they choose.

The best advice from  Mortgage Interest Rates Santa Clarita is that before making your final decision you should talk with many lenders and choose the one that fits your situation better. If the lender is not able to give you several references you call…choose a different lender. If the lender takes longer than 30 days start to finish, to close loans, keep looking. Don’t overlook the fees being charged on your new loan. If you are paying any lender origination fees, keep looking.