Interest rates are the lowest in decades, enticing many borrowers to shop for a loan.  Mortgage lenders adjust their rates based on perceptions of risk, so unless the borrower can show they’re a low-risk individual, the borrower is unlikely to qualify for a rate that matches those seen in recent advertisements and headlines.
The rates quoted are averages drawn from a variety of financial institutions, and lenders use varied approaches to set them.  Consumers who want to try for the lowest rates available need to consider basic factors, such as credit score, points, property type, down payment, and length of the loan.
Credit score: The ideal borrower has a FICO score of 740 or higher, which puts the individual in the best place for pricing.
Points: The lowest rates usually are decreased by paying a fee called a point, or 1 percent of the loan amount.  Borrowers may buy points in order to get the best rates at many banks.  Points might make sense depending on the borrower’s financial situation and how long they expect to stay in the home.
Property type: Borrowers planning to buy a duplex or a four-unit build likely will have a higher interest rate.  Condominiums also may have a rate premium rate, especially if they are newer or the down payment is less than 25 percent.  Lenders also may charge more if the borrower is not planning to live in the home.
Down payment: Borrowers who put down at least 25 percent are more likely to obtain the best interest rates.  Lenders offer different breaks on rates if equity in the property is higher, so borrowers should ask what is available.
Length of loan: Borrowers who are likely to move in a few years may want to look into an adjustable-rate loan with a low interest rate fixed for a few years, and adjusted afterword.
program available for helping all buyers (no first time homebuyer requirement) with their down payment.   Unlike most down payment assistance programs that charge interest or have a recapture tax associated with it, Wells Fargo’s Platinum Loan Program Grant is essentially the same as a gift.  There is no repayment necessary and no early penalties in case you decide to sell or refinance your home.
Some of the other programs are FHA Loans only 3.5% down payment or Fannie Mae foreclosures for 3% down Payment.
Buy a Home for as Little as 1/2% Down Payment. The special Loan Program Grant is available on FHA, VA and USDA Rural loans.  Minimum credit score is 620.   San Diego County Income Limit (tied to borrower not family size) is $89,880.  The 3% Grant can be used for down payment, closing costs, prepaid items and earnest money deposit.
County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! We offer free counseling in real estate regarding; home values and information on options of selling vs. Foreclosure.
Click here to get loan informationbefore the rates go up. To get started on viewing homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO’s) or thinking of selling your property, please contact me today for free counseling at (619) 540-5811.
New Pro-Property Search. We will setup a customized search for you by our professional REALTOR® Team. Sit back relax and shop at home! We will make changes to your Pro-Property Search any time you like, just let us know. Have fun!
By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to and I’ll be happy to follow up and take great care of them.

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