September 2017 Mortgage Rates Average
CURRENT REFINANCE RATES KINGS CA
Product Rate Change
● 30 year fixed 3.63% ↑ 0.02
● 15 year fixed 2.99% ↑ 0.07
● 5/1 ARM 3.07% ↑ 0.14
We shall cover some common questions that Kings CA Mortgage borrowers often ask in the article:
Kings CA mortgage borrowers looking for lowest mortgage rates in California will find the article helpful.
Some Kings CA borrowers feel that their scores are not so good so they may not qualify for low mortgage rates. Well, it’s not the case.
If you have a conventional loan. These loans are sensitive to your credit scores. So if you have a low score you will get a high rate. Some of you would be wondering what is a conventional loan. A simple way to understand is that if the loan is not a special category loan then it’s a conventional loan. The technical explanation would be if the mortgage was underwritten and backed by Fannie Mae and Freddie Mac then it's a conventional loan.
What does it mean if the loan is backed by Fannie Mae or Freddie Mac?
Well, a simple explanation is. If you as a mortgage borrower were to sell me something. I do not have much confidence in buying from you but if the government agencies like Fannie Mae or Freddie Mae back your product. I feel comfortable because I know it has a government backing.
That is what it means when mortgage experts Kings CA say its Fannie Mae backed mortgage.
So if you don’t have excellent credit scores. You should look at doing an FHA mortgage. In case of FHA which is also a special class of government-backed mortgage. It does not take into account credit scores. So it does not score sensitive. What I mean is that if someone has 740 scores and he is qualifying for 3.5% fixed for 30 years and your credit score is 660 you too would qualify for 3.5% fixed for 30 years but in an FHA product NOT conventional.
So having low scores doesn’t mean you have to lose your heart or you have run out of options. Another advantage of doing an FHA loan is that the next time you refinance. You don’t have to pay for an appraisal. Your income and assets will not be scrutinized like it was scrutinized the first time you took an FHA mortgage.
In 2008 when we had the mortgage crash and property prices had dipped. Those who had an FHA mortgage were able to refinance without any hassle as FHA never required the borrowers to go ahead with a new appraisal. So a borrower with a mortgage balance of $ 400,000 and property value of $ 200,000 was able to refinance without any difficulty at all like any other borrower.
These are some of the advantages of having an FHA loan.
Contact Kings CA mortgage expert below to get you the lowest mortgage rate on your refinance.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower. You can even email at roger@affordable-payment.com
Article by Roger Shanker
