close
The price comparison tools on this website require you to disable Adblock for full functionality. Please consider disabling your ad blocker on our website in order to best take advantage of our tools.
Menu Menu

Compare The Best Mortgage Rates in Sacramento, CA

 
 
Mortgage Rates in Sacramento, CA

Compare Sacramento, CA Mortgage Rates

When looking to buy a new home, it is important that one is well equipped with the necessary information. It helps, in the long run, to reduce the cost of transacting. Therefore, getting the best mortgage rates is of paramount importance. Needless to say, affordable rates are also important to those seeking to refinance their current home loans. MyRatePlan endeavors to assist you in finding the best mortgage rates in Sacramento, CA.

Best Mortgage Rates in Sacramento, CA

How Borrowers Can Get the Best Home Loan Rates in Sacramento, CA

For the typical homebuyer in Sacramento, CA, a mortgage is going to be a necessity to fund their home purchase. Even the most inexpensive homes on the market still tend to cost $50,000 or more, which is more than most people have on hand in their bank accounts, making it extremely difficult to pay for a home with cash. That's why a home loan is such an important part of the purchasing process. A small interest rate difference can make a massive difference over a loan with a term of 20 to 30 years. Real estate agents are often able to recommend their own preferred lenders that they know from past deals, but it's best for homebuyers to take these recommendations with a grain of salt. The real estate agent wants the deal done as soon as possible, but the homebuyer wants the home loan with the lowest interest rate, and those goals don't always align. Patience is a virtue for homebuyers looking for the right mortgage lender, and they should always check out rates online first for a full comparison. The MyRatePlan home loan interest rate tool is great for locating the lowest mortgage rates throughout Sacramento, CA. After the homebuyer finds the lowest rate, it's all a matter of making sure they have a credit score high enough to qualify.

Types of Mortgages in Sacramento, CA

What Loan Types are Available in Sacramento, CA?

Buying a home can be confusing. There are multiple loan products in Sacramento, CA that can be used for buyers who need a loan to purchase their house. Take a look at a few of the most common types of loans that are available and consider the ones that are best suited for your personal situation.

Fixed-rate mortgage loans - A fixed-rate mortgage loan will always have the same interest rate for the duration of the loan. With this type of loan, you never have to worry about your monthly payment changing. It will be the same exact payment amount, every month, every year, without fail. This is even the case for long-term financing options. An example of this is a 30-year fixed-rate loan.

Adjustable-rate mortgage loans - Adjustable-rate mortgage loans are also known as ARMs. Their interest rates may adjust periodically. An ARM will usually fluctuate every year after the initial fixed period is up. ARMs are also referred to as a “hybrid” product because they start with a fixed interest rate and then switch to an adjustable one. One example of an ARM loan is a 5/1 loan. A 5/1 loan will start off with an initial fixed interest rate for the first five years and then adjust once a year to a different rate.

FHA Loans in Sacramento, CA

FHA Home Loans in Sacramento, CA

If you are in Sacramento, CA, you would have to choose between the kind of loans mentioned above, which are fixed-rate or adjustable-rate mortgages. However, you would have to choose between the conventional loan or the government-insured mortgage. A conventional loan doesn't come with assurance from the government, but the government insured loan comes with a federal guarantee. Traditional loans are different from the other types of mortgages that are backed by the government, such as USDA loans, VA loans, and FHA loans.

The FHA mortgage insurance program is governed by the HUD or the Department of Housing and Urban Development, which is managed by the government. FHA mortgages are available for all types of borrowers in Sacramento, CA, and not just the first time home buyers. In this kind of government-backed mortgage, the government ensures the lenders from any losses that might result due to default committed by the borrower. One of the most significant advantages of these types of loans is that the borrowers have to pay the down payment that's as low as 3.5 percent of the purchasing amount. However, the disadvantage is that the borrower would have to pay for mortgage insurance, which would increase the cost of monthly payments.

Refinancing a Mortgage in Sacramento, CA

Refinancing Home Loans in Sacramento, CA

With mortgage refinancing in Sacramento, CA, what the buyer really does is apply for an entirely new mortgage. That new mortgage then pays off their old mortgage, and since the new mortgage has a lower interest rate, the borrower ends up paying less overall. The new mortgage can have fees, such as closing costs, and the borrower should consider how much those will cost when evaluating how much money they could save by refinancing. This isn't necessary if a borrower is refinancing an ARM with a fixed-rate loan, which is always smart because interest rates usually go up. When a borrower wants to refinance, they must prepare financially and make themselves look as low risk as possible. They can do this by getting a credit score over 700 and having as low of a debt-to-income ratio as possible. That being said, many borrowers that are applying for mortgages in Sacramento, CA can still secure low interest rates even without meeting the absolute toughest standards.

ZIP Codes in Sacramento, CA

  • 94203
  • 94204
  • 94205
  • 94206
  • 94207
  • 94208
  • 94209
  • 94211
  • 94229
  • 94230
  • 94232
  • 94234
  • 94235
  • 94236
  • 94237
  • 94239
  • 94240
  • 94244
  • 94245
  • 94246
  • 94247
  • 94248
  • 94249
  • 94250
  • 94252
  • 94254
  • 94256
  • 94257
  • 94258
  • 94259
  • 94261
  • 94262
  • 94263
  • 94267
  • 94268
  • 94269
  • 94271
  • 94273
  • 94274
  • 94277
  • 94278
  • 94279
  • 94280
  • 94282
  • 94283
  • 94284
  • 94285
  • 94286
  • 94287
  • 94288
  • 94289
  • 94290
  • 94291
  • 94293
  • 94294
  • 94295
  • 94296
  • 94297
  • 94298
  • 94299
  • 95811
  • 95812
  • 95813
  • 95814
  • 95815
  • 95816
  • 95817
  • 95818
  • 95819
  • 95820
  • 95821
  • 95822
  • 95823
  • 95824
  • 95825
  • 95826
  • 95827
  • 95828
  • 95829
  • 95830
  • 95831
  • 95832
  • 95833
  • 95834
  • 95835
  • 95836
  • 95837
  • 95838
  • 95840
  • 95841
  • 95842
  • 95851
  • 95852
  • 95853
  • 95860
  • 95864
  • 95865
  • 95866
  • 95867
  • 95887
  • 95894
  • 95899