How do California Mortgage Rates Compare Against National Averages?
The “mortgage rate” is the interest the borrower has to pay on the loan they have taken out. Mortgage rates are constantly in flux; they are affected by a myriad of factors and are impacted by the national and even the global economy. The interest rates on mortgages can vary dramatically across the country. Borrowers will be offered different rates in different states, and there will even be a difference in quotes offered by different lenders. Fees associated with the loans may also vary depending where you live. Because California real estate is so much more expensive than properties in other states, many loans taken out are called “jumbo loans”. Jumbo loans are mortgages that exceed the amount standards set by the Federal agencies of Fannie Mae and Freddie Mac. Mortgages worth more than $417,000 in 2010 in California are considered jumbo loans. These mortgages usually have higher interest rates because there is an increased risk to the lender who made the loan. The best way to make s
