Main Content

Worried About Mortgage Rates in Los Angeles? Control the Controllables

Worried About Mortgage Rates in Los Angeles? Control the Controllables

By Christophe Choo Posted Jun 20, 2024 Latest Updates, Market Activity, Real Estate Advice for Buyers & Sellers, Real Estate Articles, What I'm Reading
Worried About Mortgage Rates in Los Angeles? Control the Controllables | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

In the dynamic real estate markets of Los Angeles and Beverly Hills, mortgage rates are a hot topic. You’ve probably seen headlines about the Federal Reserve's (the Fed) meetings and their potential impact on rates. Despite what these headlines may imply, the Fed doesn’t directly set mortgage rates. Mortgage rates are influenced by various factors, including geo-political uncertainty, inflation, and the overall economy. Pinning down when these factors will align to lower rates is a challenging task.

Instead of trying to time the market, focus on controlling what you can. Here’s how you can influence your mortgage rate and make your dream of owning a home in Los Angeles or Beverly Hills a reality.

Your Credit Score

Credit scores play a significant role in determining your mortgage rate. As CNET explains:

“You can’t control the economic factors influencing interest rates. But you can get the best rate for your situation, and improving your credit score is the right place to start. Lenders look at your credit score to decide whether to approve you for a loan and at what interest rate. A higher credit score can help you secure a lower interest rate, maybe even better than the average.”

Maintaining a good credit score is crucial, especially with current rates. Consult your trusted loan officer for expert advice on improving your score.

Your Loan Type

Different loan types offer varying terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) notes:

“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”

When working with your real estate professionals in Los Angeles and Beverly Hills, explore the available loan options and determine which ones you qualify for.

Your Loan Term

The term of your loan also affects your mortgage rate. According to Freddie Mac:

“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”

Consider how the length of your loan term can impact your mortgage rate based on your financial situation.

Real Estate in Los Angeles and Beverly Hills

Los Angeles and Beverly Hills are iconic real estate markets known for their luxury properties, historical significance, and celebrity residents. Beverly Hills, in particular, offers a mix of classic and contemporary homes, making it a prime location for high-end buyers. The real estate market in these areas remains robust, with steady demand driving home prices and market activity.

Home prices in Beverly Hills are known to command a premium due to the area’s desirable location, prestigious schools, and world-class amenities. The average market time for homes in Beverly Hills is relatively short, reflecting the high demand. Regular market updates indicate a resilient market that attracts both local and international buyers.

Bottom Line

You can't control the broader economy, but you can control key factors that influence your mortgage rate. Work with a trusted lender and real estate professionals in Los Angeles and Beverly Hills to strategize effectively. By focusing on your credit score, loan type, and loan term, you can navigate the current market and secure the best possible rate. Embrace these controllables to combat today’s higher rates and lock in the lowest rate available.

For expert insights and guidance in the Los Angeles and Beverly Hills real estate markets, contact us today. We're here to help you achieve your homeownership dreams.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value

Skip to content