Getting the Best Mortgage Rates in San Jose (10-15-30-Year Fixed, 5/1, 7/1 ARM)

According to HSH, a national mortgage research company, the cost of purchasing a home is increasing across the country, particularly within metro areas.

This rings loud and clear for potential home buyers in San Jose. In 2011, CNN Money named San Jose as one of the ten most expensive places to live, with a median home price of $545,000.

Today, Zillow reports the median home price in San Jose as just under $870,000, which means that home affordability has only gotten more challenging over the past few years.

With rising home costs, finding the best San Jose mortgage rates is even more crucial to ensure that a San Jose mortgage can remain as manageable as possible for potential homebuyers.

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Key Requirements for Buying a House in San Jose

Before you apply for a San Jose mortgage, you’ll want to complete the below list of requirements.

  • Get your down payment ready (~20% of the loan amount)
  • Maintain good to excellent credit
  • Save some extra funds for your closing cost
  • Maintain a low debt balance
  • Demonstrate sufficient income
  • Gather your financial documents
  • Get a home appraisal on the home

You’ll also need to examine your options for conventional (10, 15, 20, or 30-year mortgage) or adjustable rate San Jose home loans (5/1, 3/1, 7/1 ARM) before choosing the best mortgage rates in San Jose for you.

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Getting Better San Jose Mortgage Rates with Larger Down Payments

Although some San Jose mortgage lenders require a down payment of 3 percent, the best way to secure lower mortgage rates in San Jose is to put down at least 20 percent of the home’s value.

Along with getting more favorable San Jose mortgage rates, a higher down payment means that you can avoid paying extra for private mortgage insurance (PMI).

San Jose mortgage lenders may require the purchase of mortgage insurance for smaller down payments to protect their investments in case borrowers stop making payments.

Typically, borrowers must continue paying until they reach a loan-to-value ratio of 80 percent. While it may not help you cut down costs over the long-term, it certainly does provide short-term affordability for a San Jose mortgage.

According to Zillow, the average premium for PMI ranges between $30-$70 for every $100,000 borrowed, which could make it an affordable compromise for borrowers that can’t put down the full 20 percent.

Additional Considerations for San Jose Mortgage Rates 

When searching for the best mortgage rates in San Jose, there are a few additional pieces of information to keep in mind.

If you have a good, great, or excellent credit history and you are seeking San Jose mortgage rates for a loan totaling over $424,100, some lenders may be able to provide a customized mortgage rate in San Jose.

For this reason, it’s important to confirm current mortgage rates in San Jose and terms for specific amounts before making a commitment.

Additionally, it’s also important to keep in mind that APR and payment info often does not include state-specific taxes or required insurance premiums. As such, you should expect that your monthly San Jose mortgage payment will be greater when taxes and insurance products are added.

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Conclusion – Selecting the Best Mortgage Rates in San Jose

Purchasing a home can be an exciting time. For many, buying a home represents change, renewal, progress, and the pride of ownership.

Not surprisingly, purchasing or refinancing a San Jose mortgage can also be an expensive time, particularly when it comes to San Jose mortgage rates.

Understanding your options for San Jose mortgage rates or refinance rates in San Jose is crucial for any home buyer.

No matter what mortgage rates in San Jose you choose, you’ll want to ensure that a San Jose mortgage or refinance sets you up for financial success over the long run.

After all, San Jose mortgages are meant to last for decades, making it crucial for each potential homeowner to find the best possible San Jose mortgage rates.

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