As of Saturday, May 4, 2024, California’s current interest rates are 7.40% for a 30-year fixed mortgage and 6.81% for a 15-year fixed mortgage. According to the California Association, the median house sale price in the state increased by 6.4 percent year over year in December 2023. These increases and today’s increased mortgage rates make it challenging to finance houses. While mortgage refinance rates have doubled since the epidemic, many California homeowners now have far more available equity. With a cash-out mortgage refinance, you can use this asset to help you achieve your financial objectives.
Mortgage Statistics for California:
California has some of the most expensive housing markets in the country, owing to its beaches, mountains, and thriving industry. Affordability is a severe struggle here, yet California homeowners have reaped significant rewards. Here are some statistics on mortgages and the housing market in the Golden State:
- In January 2024, housing availability decreased by 3.8% YoY, while the median home sales price in December 2023 was $819,740.
- Homeownership rate for Q4 2023: 56%.
Mortgage Choices in California:
There are numerous mortgage alternatives in California. The most prevalent loan types are:
- California conventional mortgages: Rates and regulations vary depending on where you want to live and your financial circumstances. You can compare mortgage rates which choice is best for you.
- CalHFA: The California Housing Finance Agency (CalHFA) provides state citizens with mortgages and smaller loans to aid with down payments or closing fees. Applicants should contact a CalHFA-approved lender or a recommended loan officer to get started.
- California FHA loans: The Federal Housing Administration insures home loans in the United States. They are available to first-time homebuyers who have not purchased a property in the previous two years, as well as repeat buyers. FHA loans are primarily intended for low- to moderate-income customers with low credit ratings.
- California VA loans: The Department of Veterans Affairs guarantees VA loans available to eligible veterans and active-duty military members. While the VA does not provide loans directly, you can obtain one via a VA-approved lender in California. They need no down payment and usually feature cheaper interest rates than traditional mortgages.
How to Find The Best Mortgage Rate in California for You?
Step 1: increase your credit score – Before looking for a mortgage lender, review your finances and improve your credit score if needed.
Step 2: Determine your budget – To get the correct mortgage, you’ll need to know how much house you can afford.
Step 3: Understand your mortgage alternatives – There are various mortgages.
Step 4: Compare rates and terms with at least three different lenders.
Step 5: Get preapproved for a mortgage – Obtaining a mortgage preapproval is the only method to receive precise loan pricing for your situation.
