Why Your Rate Might Be Lower Than You Think
Are interest rates actually as high as 7% in Los Angeles County?
Have you heard from the media that interest rates are in the low 7% range? You hear this line repeated everywhere, but is it true? It turns out that this number only applies to conforming loan amounts, so what is the conforming loan amount, and what does this mean for you?
First, the conforming loan amount is the cap for conventional loans; anything higher, and you need to use a jumbo loan. The amount varies per county, so in Los Angeles County, the loan limit is $970,800.
What many people don’t know is that the jumbo pricing is actually much more affordable because you get a lower interest rate. For example, a jumbo loan, which is anything over $970,800, has a 30-year fixed rate in the low 5% range.
Starting in January of 2023, jumbo pricing is being raised from $970,800 to $1,089,300. This means it will be harder to take advantage of their lower rates if you wait. If you are looking to make a move or just have some questions, please call or email me. I am always willing to help!
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