
The Bay Area is a hot spot for homebuyers, but with rising housing costs, it's essential to explore all mortgage options.
Credit unions in the Bay Area offer competitive mortgage rates, often lower than traditional banks.
Some credit unions in the Bay Area offer mortgage rates as low as 3.5% for 30-year fixed-rate loans.
For example, the Bay Area's largest credit union, PenFed, offers a 30-year fixed-rate mortgage with a 3.75% interest rate.
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Current Mortgage Rates
Mortgage rates can vary depending on the type of loan and your location.
In California, the conforming loan limits can range from $806,500 to $1,209,750, depending on the county.
You can check the specific loan limits for your area in the 2024 California Conventional Conforming Loan Limits table.
For example, in San Francisco, the conforming loan limit is $1,209,750.
If you're looking for a conforming mortgage, you can expect rates as low as 3.990% for a 7-year loan or 5.875% for a 30-year loan, according to the mortgage rates as of January 3, 2025.
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Here's a breakdown of the rates for conforming mortgages:
Keep in mind that these rates are subject to change and may not reflect your individual situation. It's always a good idea to check with a lender for the most up-to-date information and to discuss your specific needs and circumstances.
Mortgage Options
You can borrow up to $1,500,000 with a first mortgage for a primary residence, assuming you're putting down at least 5% of the purchase price.
The credit union offers flexible loan options, allowing you to choose from different loan-to-value (LTV) ratios. For instance, you can get a loan up to $2,500,000 with an 85% LTV ratio.
Loans for higher-priced homes, up to $3,000,000, are also available, but with a slightly lower LTV ratio of 80%.
Fixed/Adjustable
Fixed/Adjustable Movable Mortgages offer flexibility in terms of payment and interest rates. You can choose from a variety of terms, including 5/30 years, 1/30 years, 5/54 years, and 1/54 years.
For example, a 5/30 year mortgage with zero discount points has an interest rate of 6.25% and an APR of 6.29%. This translates to a payment of $6.16 per $1,000 borrowed.
Discount points can be paid to buy down the interest rate, but keep in mind that they're calculated as a percentage of the loan amount. This means that the more you borrow, the more discount points you'll need to pay.
A 7/23 year mortgage with zero discount points has an interest rate of 7.75% and an APR of 7.328%. For a 10/10 year mortgage, the interest rate is also 7.75% with an APR of 7.355%.
Payment per $1,000 balance is based on the interest rate listed for the amortization term listed, and is rounded to the nearest cent. For example, for a 30 year mortgage with zero-points and a fixed rate of 5.875%, the payment per $1,000 is approximately $5.92.
Here's a breakdown of some fixed/adjustable mortgage options:
Keep in mind that these are just a few examples, and there are many other options available. Be sure to review the fine print and understand the terms and conditions of any mortgage before making a decision.
First for Primary Residences
For primary residences, you can get a first mortgage with a loan amount of up to $1,500,000 with a loan-to-value (LTV) ratio of 95%.
Loans for primary residences can be quite substantial, reaching up to $2,500,000 with an LTV ratio of 85%. This means you can borrow a significant portion of the property's value.
If you're looking at a higher-end property, you can still get a first mortgage with a loan amount of up to $3,000,000, but with a slightly lower LTV ratio of 80%.
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Refinancing and Locking Rates
Refinancing your mortgage loan can be a great way to lower your monthly payment and shorten the length of your loan. You can do this with Provident's low rates and variety of terms.
Refinancing can also help you lock in a good interest rate, which can save you money in the long run. This is especially important since mortgage rates change continually, and you don't want to be stuck with a higher rate than you need to be.
By locking in a rate with a Rate-Lock Commitment, you can protect yourself against an increase in interest rates. This gives you peace of mind and financial stability.
Refinance a Loan
Refinancing a loan can be a smart financial move, and it's easier than you think. You can lower your monthly payment and shorten the length of your loan with a refinanced loan.
By refinancing a loan, you can take advantage of low rates and a variety of terms. This can help you save money on interest and pay off your loan faster.
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Rate-Lock
Mortgage rates can change rapidly, so it's essential to protect yourself against an increase.
You can do this by locking in a rate, which is a commitment from your lender to keep your interest rate the same for a specified period.
This is often referred to as a Rate-Lock Commitment.
This commitment can last anywhere from 15 to 60 days, giving you time to finalize your refinancing application.
During this time, your lender will guarantee the interest rate you've locked in, shielding you from potential rate hikes.
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Frequently Asked Questions
Are mortgage rates better with credit unions?
Yes, credit unions often offer lower mortgage rates compared to banks, as they borrow from their own members rather than external investors. This unique structure can lead to significant savings for credit union borrowers.
What is the 30-year mortgage rate right now in California?
The current 30-year mortgage rate in California is 6.856%. Check today's rates and explore your options for a fixed-rate mortgage.
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