If you are planning to buy a home in San Diego, one of the things that you should know about is mortgage rates. That is because mortgage rates have a crucial impact on your finances, particularly on monthly loan payments. Thus, it makes sense to know the factors affecting mortgage rates in San Diego. These are the following:

Credit scores. In general, homebuyers with higher credit scores get lower mortgage rates in San Diego than those with lower credit scores. Lenders use a credit score as one of the benchmarks of how reliable a borrower will be in paying off a loan. Therefore, check how healthy your credit score is, and do what it takes to improve it when needed.

Downpayment. The larger your down payment, the more likely you receive a lower interest rate. Mortgage lenders perceive those who can put down a higher amount as low-risk clients. It is worth noting that a lender may require you to buy mortgage insurance if you cannot put at least a 20% downpayment.

Loan term. Deciding on which loan term to choose is a balancing act. On one side, there’s a shorter-term loan that has a lower interest rate and lower overall costs. However, you are going to pay higher monthly payments. On the other hand, if you choose a longer loan term, you pay lower monthly payments but on a longer duration, and the overall cost of the loan can be significantly higher. Therefore, you need to be careful in deciding on loan terms, and a mortgage broker can guide you in the decision-making.

Home location. As a homebuyer, you should also consider the location of the property you are interested in buying. You can expect that two similar or almost identical homes can have a significant discrepancy in mortgage rates. For instance, variation between a state and another state; between urban and rural areas. You should reach out to different lenders to consider all options available to you.

Online looking for great deals on mortgage rates in San Diego? Contact HomePlus Mortgage today.

Call us at (800) 958-7587.