This week the Federal Reserve Bank raised interest rates for the first time in seven (7) years. While overnight interest rates are still very low at 0.25% many economists feel as if the Fed could raise interest rates three more times in 2016. What will this do to mortgage interest rates, especially in the state of California?
Overall mortgage rates will likely start to slowly creep higher due to a higher 10 year treasury rate yield. That said, mortgage rates are still very low when looking at a historical rate chart. Even if 30 year fixed mortgage rates go all the way up to 5% it is still much lower than other times in history. We strongly suggest using a mortgage calculator or contacting us to find out how much you will pay over the history of your home loan. If you can make a larger than minimum monthly payment on your mortgage the overall interest rate will not matter as much.
If you plan on taking out a California FHA home mortgage loan remember there are pros and cons. One of the best reasons to take out an FHA mortgage is the lower down payment. You will only need to put down 3.5% vs the 20% you would need to put down for a conventional 30 year fixed home loan. Those that are first time home buyers or do not have a significant amount of money saved benefit greatly from the low down payment.
If you are looking to get low interest rates on your FHA mortgage contact us today. We can help you lock in to some of the lowest California FHA rates in recent history. We have a team of mortgage professionals that will go above and beyond to make certain you are in the correct mortgage product for your current financial situation. Give us a call today so we can get started on your 2016 FHA mortgage application.