Mortgage Rates Bakersfield

Current Mortgage Rates Bakersfield

Mortgage Rates Bakersfield – Obtaining a mortgage is usually the most challenging task in the house buying process. There are so many varieties of mortgage packages and options available today, each with its unique benefits and drawbacks. Making successful judgments is possible by having a solid understanding of mortgage loans and Mortgage Rates Bakersfield. We provide you with information about mortgage loans, rates, and financing factors in the city of Bakersfield, California. 

Why Move to Bakersfield?

There are several advantages to describe about the city of Bakersfield. The city offers you the oil production industry, agricultural industry, nature, recreational activities, and great schools. Currently home to almost 840,000 people, this lovely city has a lot to offer to both locals and tourists alike.

Bakersfield is an agriculture hub thanks to the climate that allows the right conditions for all kinds of plants and vegetation.  The average annual temperature is just under 70 degrees with mild winters, and a lot of clear days (an average of 191 days, which is higher than the average in most American cities).

Along with its wonderful weather throughout the year, Bakersfield offers a wide range of attractions that are enticing to every households. While history and entertainment buffs would be love to spend an afternoon at both the California Living Museum and the Kern County Museum, nature enthusiasts shouldn’t hesitate to visit the park at River Walk and Lake Ming. In addition, Buck Owens’ Crystal Palace offers tourists a glimpse at stunning stalagmites, geodes, and unique rocks, while Murray Family Farms allows visitors a look into the vast agricultural scope of the city.

Students from Bakersfield have the option of attending one of the 28 public schools run by the Kern High School District. The city is also home to major universities such as the University of Phoenix and California State University, Bakersfield. Overall, Bakersfield offers a wide range of comprehensive educational possibilities.

Current Mortgage Rates In Bakersfield

Various factors influence mortgage rates, and a trusted mortgage advisor can help guide you through the fluctuating rates. This will help get more prepared for the home-buying process. We recommend you visit Reliance Financial for details on Bakersfield’s best mortgage rates. 

In the meanwhile, here are a couple statistics below (source: Zillow) to help you get familiar with current rates and changes in the market:

  • In California, the standard 30-year fixed mortgage rate increased by 9 basis points from last week, from 5.23% to 5.32%. Mortgage rates in California are currently 3 basis points less than the 5.35% national average rate.
  • The current average 5-year ARM rate is down 10 basis points from 4.87% to 4.77. 
  • The average 15-year fixed mortgage rate in California climbed 6 basis points from 4.45% to 4.51%.

Note: The mortgage rates showing above are calculated upon loan assumptions and may not apply to your specific situation. The exact amount you pay, your mortgage rate, and your costs could fluctuate. Before selecting a mortgage plan, make sure to get an official Loan Estimate from your trusted mortgage loan originator. By answering a few questions about your personal profile, you may get your personalized rate quote. 

How Affordable is Housing in Bakersfield, California?

Below, you’ll find useful details (source: Free and Clear) about Bakersfield’s housing market, home prices, and affordability. It is important to recognize your income requirements, including the mortgage you must be eligible for, to buy a property in this city.  We provide this data just for illustrative purposes. This data in no way applies to your situation..

  • Median Home Value: Bakersfield, California has a median home value of $301,352.
  • Potential Income Required: To purchase the median-priced property in Bakersfield, you need to make $49,375 a year based on current mortgage rates and a 10% down payment.
  • Potential Affordabilty: If your monthly debt payment is manageable, you may be qualified for a $271,217 mortgage with this income.
  • Potential Mortgage Payment: The typical property price in Bakersfield would require a $1,143 monthly mortgage payment based on the loan amount.
  • Average Household Income in Kern County: The average household income in Kern County, California is $57,359
  • Potential Affordability with Average Income in Kern County: With this money, you could buy a house with an estimated worth of $350,077.

Given Bakersfield’s average housing costs, you may purchase a home for 116% of the city’s median home value based on your household’s income. This is relatively affordable compared to most other major cities in California, which is why housing in Bakersfield is in increasingly high demand.

Mortgage Types Available in Bakersfield, CA

There are numerous mortgage alternatives accessible to potential homebuyers in Bakersfield, California. These loans were developed to meet a wide range of requirements. Here are some of the most typical varieties: 

Adjustable Rate Mortgage Loans (ARM)

These loans may have variable interest rates over time. After an initial fixed interest period, the interest rate will typically change every year. Because it begins with a fixed interest rate and then changes to a variable interest rate, this product is sometimes referred to as a hybrid mortgage loan.

Fixed Rate Mortgage Loans

The interest rate on these mortgages remains constant for the whole term of the loan contract, which means that fixed interest loans have fixed monthly payments that won’t change until the loan is fully repaid. Even with long-term loans like a 30-year fixed-rate loan, this reality does not change. Throughout the whole term, the interest rate and monthly payment amount are fixed.

FHA Loans

The federal government insures loans through the FHA, VA, or USDA programs. The Federal Housing Administration ensures the FHA loans. Although they are perfect for first-time homebuyers, anyone is eligible to apply for this type of loan. People simply need a 3.5% down payment and don’t need perfect credit to get qualified for this loan. FHA loans are under observation of the Department of Urban Development (HUD). Mortgage insurance is a requirement for these loans, however. Many consider this a drawback as it raises the monthly payment amount.

VA Loans

For everyone who has served in the US military, the  Department of Veterans Affairs (VA for short) insures the VA loans. There is no down payment necessary for these loans because the VA will support the entire amount. 

USDA Loans

People who live in specific rural areas and have a lower income are eligible for USDA loans, which are insured by the United States Department of Agriculture. 

Conventional Loans

Conventional loans are the most common types of loans. These are not ensured by the federal government, and can come in terms and options. People usually need to have good credit to qualify for these mortgage loans. Popular examples of conventional loans the conforming loan amounts of up to $647,200 across the United States.  In high cost counties like Los Angeles and the nine Bay Area Counties, the conforming loan limits are extended up to $970,800.

Conclusion:

A wide range of options for affordable and expensive property purchases are available to prospective homeowners due to the city’s varied housing and living costs. You should shop around for your mortgage loan to receive a great rate on your Bakersfield home purchase or refinance, according to Reliance Financial. 

We are aware that there are numerous options for mortgage loan providers, and we will do what it takes to help you find the option that best satisfies your needs.  A Reliance Financial residential mortgage specialist will evaluate your unique situation and give you detailed information to help you determine how much property you can afford, whether you’re buying a home or refinancing your current one.

Frequently Asked Questions about Mortgage Rates:

Q1: What documents will I require to apply for a mortgage?

Answer: Typically, traditional loans call for:

  • Your social security number
  • Payslips from the previous two months
  • W-2 forms for the last two years
  • Recent bank statements (for the past two to three months)
  • Federal tax returns from the past one to two years
  • A signed and completed residential purcahse agreement (assuming you are already in contract on your new home)
  • Information on current debt, including credit card debt and loans for cars, students, and homes.

Q2: How do I begin the process of buying a home?

Answer: These actions will assist you in getting ready to purchase your first house.

  • Narrow down your search for a mortgage advisor
  • Pay attention to your credit score (and do your best to raise it)
  • Use our affordability calculator to see what price ranges of houses you can afford
  • Keep the necessary amount of money aside for a down-payment. Or seek down-payment assitance from family.
  • Save for further home-buying expenses (inspections, insurance, deposits)
  • Obtain a pre-approval.
  • Identify a real estate agent
  • Actively start looking for a home and put an offer on your dream home