Understanding San Francisco Interest Rates
By Allison E. BeattyLocal Lender Columnist
Mar 24, 2006
The mortgage interest rate you pay can play a significant role in your housing decisions. This is particularly true in the San Francisco area, where housing prices have climbed steadily in recent years.
How Interest Rate Changes Affect Your Mortgage
As you shop for mortgages, pay attention to the details of each program and the rates they carry. Even a one-quarter percent rate change can force you to scale back on the type of house you buy. For example, if rates go up:- You may decide to forgo the brand new or bigger house and shop for one that is five to seven years old or smaller than you expected.
- You may decide to shift to an adjustable rate mortgage to lower your mortgage payments.
- You may have to lock in a rate quickly to avoid a rate increase.
Compare Mortgage Programs Carefully
When shopping for a mortgage in San Francisco, check each lender's programs carefully. While the interest rate is key, also pay attention to other mortgage loan requirements, such as:- Property mortgage insurance
- Tax escrow
- Loan origination fees
- Early termination fees
Shop Mortgage Web Sites
One way to stay on top of interest rates is to use a mortgage loan calculator or other online tools to help you determine current rate and specific loan information. A number of calculators will allow you to compare rates between San Francisco and other areas.Investigate Mortgage Options
By meeting with a mortgage professional, you can determine:- How much house you can afford with various interest rate scenarios.
- Whether a fixed or variable interest rate is the best route for you.
- How much the new home loan will cost, including any points or other fees.
About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.