When people ask me what I do and learn that I am a mortgage broker, the usual first and natural question is, “What are interest rates right now?” The answer is always, “It depends.” There are many factors that go into an interest rate, so that’s why it’s important to get a quote that pertains directly to you and your situation. Here are the factors that go into the rate you are quoted:

  1. Loan program (30 Year Fixed versus 15 Year Fixed versus ARM)
  2. Loan purpose (purchase, rate & term refinancing, cash-out refinance)
  3. Loan Amount (conforming? High balance? Jumbo?)
  4. Appraised Value (Loan-to-Value Ratio), or equity in the home
  5. Lock Period (15, 30, 45…)
  6. Credit Score
  7. Impound Account (some lenders offer specials or incentives for electing to have an impound account)
  8. Property Type (single-family home, condo, townhouse, units …)

Interest rates are still in the 2-4% range depending on the loan program and above parameters, so one can never say that the blanket rate for any situation is x percent. If your home is in California, contact me for a rate quote if you are in contract to buy or are considering refinancing.