California mortgage interest rates vary as the index rates tied to CDs, U. S. Treasury bills, or other indexes vary. Mortgage lenders add between two and four percentage points of the index as their interest rate. If you have a fixed rate mortgage, the interest on your loan will not change.

On the other hand, if you have an adjustable rate mortgage (ARM), when it is time for your interest to change, it will either go up or down. This can be to your advantage, if the rate goes down. It can, however, have an undesirable impact on your monthly premium. If the rate goes up, you can expect an increase in your mortgage payment. To safeguard your financial obligations, make sure you have a cap on the amount by which the mortgage company can raise the interest.

Understanding California Mortgage Interest Rates

At Park Place Real Estate Company, we work with you to help you secure your financial future. We carefully monitor the market to help you choose the best type of loan for you. Since interest rates can vary from one type of loan to another, we will evaluate your goals and plans for the future to determine if an ARM, fixed rate mortgage, or balloon mortgage is in your best interest.

We are available to answer your questions about the mortgage interest rates available to California buyers. We are conveniently located in Southern California, and we will gladly come to your home, if you desire. Give us a call at 949-540-2300 to speak with one of our real estate professionals or loan officers about your next home.