What our customers say
“Rick and his team are by far the best Mortgage broker we have ever used. Over the past 20 years we have refinanced several times continuing to reduce our payments with lower interest rates. Rick is right on top of contacting us when something better comes along. He is easy to get a hold of and gets back to us immediately when we contact him. Thanks Rick for always doing your best work for us.”
-Cheryl and Ralph, Aliso Viejo (Verified Yelp review)
Rates are way down!
The average 30-year fixed rate has dropped to 3.9%, with well-qualified buyers getting even lower rates than that. Interestingly, the same rate also applies to “jumbo” loans – (loans that are above the standard $484,350 conforming limit).
That’s unusual in our high-priced market, where jumbo loans are routine and average house prices in most areas are well over the conforming limit.
More people are choosing to lock in today’s low rates with a 30-year fixed mortgage, too, rather than leave anything to chance with an adjustable rate mortgage.
FHA borrowers are getting a great deal, too: The average rate for 30-year fixed rate FHA-backed mortgages fell by 4/100ths of a percentage point to 3.75%. For 15-year FHA mortgages, the average interest rate fell last week to 3.35%. If you want to build home equity fast, or pay off your home as quickly as possible, the 15-year fixed may be a terrific way to go. With the average contract coming back at 3.35%, this may be the mortgage opportunity of a lifetime.
As always, not everyone will qualify for those rates. Mortgage underwriters base rates on a variety of factors: Some people will get offers a little lower, and some borrowers will get offers a little higher. Borrowers with higher than average debt-to-income, with below average credit, or with other negative factors will usually not get the best offers available.
Less than perfect credit? OK!!
If this describes you, it’s important to come in with reasonable expectations. But the good news is this: Today’s rates are near historic lows for people at all credit tiers. We’re routinely able to find great home loans for all kinds of people – even people with some credit issues. And most applications get approved.
So if you can benefit from refinancing at these low rates, don’t be shy about applying. Now’s the time to strike.
Many people who bought or refinanced as recently as a year ago are taking advantage of the opportunity this month. The savings are often worth the effort.
What about adjustable-rate mortgages?
The average contract interest rate for 5/1 ARMs dropped to 3.25% from 3.42%. The expression “5/1” means that interest rates are fixed for 5 years, and then will readjust every 1 year after that based on prevailing interest rates. If interest rates fall, so will your payment. If interest rates rise, so will your payment.
But with a lower interest rate, more of your payment each month will go to principal, rather than interest. This is especially true for shorter loan terms (15 years instead of 30). So if you keep up your payments, you will build equity much faster than you would in a longer loan term or at a higher rate.
It’s a great time to buy!
Nationwide, mortgage applications for home purchases are up strongly this month, too, compared to year-ago figures. Purchase applications are up 10% compared to the first week of October last year, according to the Mortgage Banker’s Association.
Again, if you can afford the mortgage and insurance without destroying your lifestyle, don’t be gun shy about applying for today’s great rates. Nationwide, only about 14.6% of completed applications for home purchases are getting turned down. If your debt-to-income ratio and credit history are at least reasonable, chances are very good we can help you climb on the property ladder with a home loan you can live with.
Lock in your low rate now.
If you’ve been on the fence about purchasing or refinancing a home, don’t miss this tremendous opportunity! Lock in today’s low rates! Contact us at Pacific Home Loans today at (949) 494-4861. Or fill out our convenient online application here, and we’ll follow up with you promptly.
Whether it’s saving potentially hundreds of dollars per month by refinancing, purchasing a first home or a dream home, we’re ready to help you get it done!