If you’re looking for the best mortgage interest rate when buying a home or refinancing in California, the task almost seems overwhelming. But don’t worry, it’s not as daunting as it sounds. This blog post will give you some great directions, even if you’re looking in a different city than Long Beach.
How Do Lenders set their interest rates?
The dirty secret that most lenders don’t want you to know, is that all of us, big national lenders and small local lenders, all of our rates pretty much start out at the same place. Lenders take that initial rate, and increase the interest rate to add their profit into the rate. The higher the rate, the more profit they will make.
I worked for a big national lender. I worked for a regional lender. And now I’m a mortgage broker. So I’ve seen it from all sides. Those big national lenders have a lot of expenses. Huge building with lot of employees. Before I became a mortgage broker, I had a branch manager, a sales manager, a regional vice-president, CEO and a whole lot of underwriters and marketers. That’s why their rates suck. They have a lot mouths to feed.
Why Working with a Mortgage Broker Makes a Difference in Interest Rate
Now that I’m a mortgage broker, my company takes a small cut, and I keep my compensation low. I do this because I can keep my rates low. I can beat most other lenders out there when they are shopping my mortgage interest rate.
Benefits of keeping my rate low:
- My Buyers have more purchasing power.
- My borrowers that refinance can save tens of thousands of dollars in interest over the life of the loan.
- If my buyers need help with closing costs, I have some wiggle room to raise the rate a bit and offer a lender credit to help out. And most times the rate will still beat my competition.
- My borrowers love it, so they tell all of their friends and family about me. They become my biggest cheerleaders.
So, you see, it’s a great business move. If I take less compensation to give my clients a much better rate, I get more business from referrals. It’s like a snowball that keeps growing.
In Conclusion
So who has the best mortgage rates in California. Always seek out your local mortgage broker. Because we keep our overhead low, and stay lean and mean, we can get you the best interest rate out there.
I’m Your first Call.
Your first step should always be to talk to a mortgage professional. Schedule a time speak with me today, it doesn’t matter if your’e already under contract, or if you are buying until next year. I need to make sure we get you ready, and that you’re doing the right things today, so when you do make an offer, you are all set. I see too many people that take advice from the internet or non-professionals and mess up their chances to buy.
Talk to Jesse – Mortgage Expert: Click here to schedule a time to talk.
My name is Jesse Rivera. I’m licensed in the State of California and I live and work in beautiful Long Beach, CA. I can do loans for the whole state of California, but I specialize in SoCal, especially Long Beach, Los Angeles County and Orange county.
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