Natalie toggles between news stories and enterprise reporting to bring timely personal finance topics to readers. Her mission is to help inform people of all financial backgrounds about events that may affect their financial futures. Her work has app.
Natalie Campisi Senior Staff WriterNatalie toggles between news stories and enterprise reporting to bring timely personal finance topics to readers. Her mission is to help inform people of all financial backgrounds about events that may affect their financial futures. Her work has app.
Written By Natalie Campisi Senior Staff WriterNatalie toggles between news stories and enterprise reporting to bring timely personal finance topics to readers. Her mission is to help inform people of all financial backgrounds about events that may affect their financial futures. Her work has app.
Natalie Campisi Senior Staff WriterNatalie toggles between news stories and enterprise reporting to bring timely personal finance topics to readers. Her mission is to help inform people of all financial backgrounds about events that may affect their financial futures. Her work has app.
Senior Staff Writer Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
| Loans & Mortgages Editor
Updated: Oct 10, 2023, 1:17pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Getty
California real estate is among the most expensive in the country, so getting the most competitive rate is essential for homebuyers looking to save money where they can.
One of the best ways to get the lowest possible mortgage rate is to comparison shop by comparing rates from multiple lenders.
As of Wednesday, July 20, 2022, mortgage rates averaged the following in California, according to Bankrate data:
The 30- and 15-year rates track above the national averages published by Freddie Mac, while the 5/1 ARM is just below. Here are the national home loan rate averages for the week ending July 14: the 30-year, fixed-rate mortgage was 5.51%; the 15-year, fixed-rate mortgage was 4.67%; and the 5/1 adjustable rate mortgage (ARM) was 4.35%.
For those who want to maximize their dollars to ensure the highest return on investment, finding the right mortgage is essential. Some borrowers might think the best way to save money is to pay off their mortgage faster—by opting into a shorter loan term with higher monthly payments—but that’s not always the case.
If you can lock in a low mortgage rate it might be better to get a 30-year loan and put the extra money you save on monthly payments toward something that has a higher return on investment, like credit card debt or other high-interest loans.
Choosing the right mortgage depends on your financial situation and goals. A mortgage with low down payment requirements might make sense for some, while others may need a jumbo mortgage.
But there are several types of mortgages that tick a variety of boxes, here are some to consider:
Conventional mortgages are loans that conform to Fannie Mae and Freddie Mac underwriting standards. These are the most common mortgages that are not backed by the government.
Conventional mortgages tend to have stricter qualifications than government-backed loans, but they also offer advantages, such as looser home inspection standards and the ability to drop private mortgage insurance (PMI) after reaching 20% equity (without refinancing).
Federal Housing Administration (FHA) loans have lower interest rates and only require a 3.5% down payment.
The downside of FHA loans is if you put less than 20% down, you must pay a mortgage insurance premium (MIP) which can’t be removed unless you refinance into a conventional mortgage.
Department of Veterans Affairs (VA) loans are only for active-duty military and veterans and their spouses. VA loans are advantageous because there are no down payment requirements, credit requirements aren’t as strict and your closing costs can be rolled into the loan.
Best VA Mortgage Lenders Of 2024
United States Department of Agriculture (USDA) loans are for homebuyers in rural and designated USDA areas. Similar to VA loans, USDA loans have no down payment requirements and the credit requirements are looser than conventional mortgages.
Right now, California property taxes are among the lowest in the country. According to the Tax Foundation, California’s property taxes were the fourteenth lowest in the U.S., with state and local property taxes amounting to $2,411 per capita.
Buyers who need some assistance with a down payment or closing costs can take advantage of California’s many assistance programs. Some of these programs are designed to help first-time homebuyers (those who have not owned a home in three years) as well as low- and mid-income buyers.
The California Housing Finance Agency, or CalHFA, has several programs designed to help buyers achieve homeownership. Some of these programs include grants, no-interest deferred loans and financial assistance for the construction of accessory dwelling units (ADUs).
Check your rates today with Better Mortgage.
Was this article helpful?
Share your feedback Send feedback to the editorial team Thank You for your feedback! Something went wrong. Please try again later. Buying Guide
By Caroline Basile
By Caroline Basile
By Caroline Basile
By Caroline Basile
By Caroline Basile
By Caroline Basile
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Senior Staff WriterNatalie toggles between news stories and enterprise reporting to bring timely personal finance topics to readers. Her mission is to help inform people of all financial backgrounds about events that may affect their financial futures. Her work has appeared in numerous publications such as CNBC, Bankrate, Buzzfeed, ABC Action News, The Chicago Tribune, The Associated Press and the Tampa Bay Times. She’s appeared on various podcasts and news shows to discuss personal finance topics, including Nasdaq’s Trade Talks.
© 2024 Forbes Media LLC. All Rights Reserved.
Are you sure you want to rest your choices?The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Here is a list of our partners who offer products that we have affiliate links for.
