Refinance Mortgage Rates in Oakland, CA

Oakland-California Mortgage Refinancing

The median value in Oakland- California is about $ 687,000 and the property price has been moving up by almost 9% every year.So if you are a mortgage borrower looking to refinance with lowest mortgage rates. You would be surprised to know that the loan limit to consider a loan conventional backed by government agencies has been increased. What that means is that if you had a loan amount that was higher than government prescribed loan limit be it Single family or multi family home. Now there is a possibility that your loan is within the new loan limit set by the government agencies that is Fannie Mae and Freddie Mac and now you have a chance of reducing your mortgage rates further.

You may have come across the word from your Oakland-California mortgage expert that your mortgage is jumbo and hence it will be underwritten with banks underwriting policy and a higher rate would have been offered. Most likely you are on adjustable rate mortgage because in very few cases have i seen a borrower going in for 30 years fixed on jumbo loan.That is because your mortgage was put in the bucket of jumbo that had no government agencies backing like Fannie Mae or Freddie Mac. However with the loan limit now having increased to bring more number of loans to be classified under Conventional or Agency backed loan as its called. You now have a chance to qualify yourself for lower rate of interest on your house mortgage.

The reason why you have a higher rate in case of jumbo is very simple to understand. In case of conventional or agency backed loan like Fannie Mae or Freddie Mac backed loan. The mortgage is underwritten using the government agencies guideline and not exclusively with banks own guidelines So if your mortgage is underwritten with government agencies guideline. These mortgage have an easy sell in the market to investors because the investors know that it has a backing of the government so at least they are insured income way.  Hence these loans are an easy sell and so lower rate of interest to mortgage borrowers.As for jumbo they are not backed by government agencies hence you get a higher mortgage rate on jumbo loans.So if you are a Oakland-California mortgage borrower looking to refinance on low rate. You need to talk to Oakland-California Mortgage expert.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. You can even e mail at roger@affordable-payment.com  .

Article by Roger Shanker