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San Jose, CA FHA Mortgage Rates
People looking to secure a home loan mortgage in San Jose, CA must successfully meet requirements established by the Federal Housing Authority (FHA) in order to qualify for a mortgage insured by the FHA . Mortgage interest rates in San Jose, CA for FHA loans are typically lower than those of conforming rate mortgages due to the fact that mortgage lenders bear less risk since FHA is insuring the home loan mortgage in the event the homeowner defaults on their mortgage loan.
San Jose, CA Fixed Rate Mortgages
Fixed rate mortgages are the most prevalent mortgage offering available in San Jose, CA.The Fixed rate mortgage has broad appeal due to the stability of its interest rate. Both the mortgage rate and the home owner's monthly payment stay the same for the life of the mortgage loan.
San Jose, CA Conforming Mortgage Rates
Conforming mortgage rates meet specific criteria set forth by the Federal Housing Finance Agency. In California conforming mortgage limits are established on a county basis. Typically in counties that have a higher cost of living such as Santa Clara County, or some coastal counties with beachfront property the mortgage loan limits will be higher as well.
San Jose, CA mortgages that "conform" to the standards set out by Federal Housing Finance Agency can be packaged and sold to Government Subsidized Entities (GSA) like Freddie Mac and Fannie Mae. This process guarantees financial institutions the ability to resell San Jose, CA home mortgage loans. Due to this fact, San Jose, CA mortgage rates today are lower than jumbo interest rates in San Jose, CA.
San Jose, CA Jumbo Loan Interest Rates
San Jose, CA jumbo mortgage rates are utilized for mortgage loans that have high dollar amount loans that exceed the FHA home mortgage, conforming loan limits and high balance conforming loan requirements. Jumbo home loan rates and mortgages in San Jose, CA will typically run approximately 1/2 to 3/4 of a point higher than conforming interest rates in San Jose, CA because there is no guarantee financial institutions (banks, credit unions, etc.) can sell these mortgage/loans on the secondary mortgage market.
San Jose, CA Adjustable Rate Mortgages
San Jose, CA adjustable rate mortgages (ARMs) have a fixed mortgage rate for an initial term and then become adjustable. For example a 5/1 adjustable rate mortgage would have a fixed rate for the first five years and then the mortgage rate would adjust every year thereafter. Typically ARMs will have yearly caps and life time caps how often and to what degree the mortgage interest rates will fluctuate. With an adjustable rate mortgage, the monthly mortgage payment is lower during the initial term, but will likely increase as the mortgage becomes including terms ranging from 1 to 15 years.
San Jose, CA Interest Only Home Mortgage Rates
San Jose, CA interest only mortgages enable the borrower to pay only the interest on the principal balance for a specified period of time. Once the period of time has elapsed the borrower shall be responsible for both principal and interest. Interest only home mortgages were extremely popular during the run up prior to the sub-prime mortgage crisis. However, now they are less prevalent and more of a niche or portfolio lending product.