Get the Best Rate— Mortgage Rate Factors That You Control as a Buyer

Lenders adjust mortgage rates depending on how risky they judge the loan to be. A riskier loan has a higher interest rate. Did you know that you have control over some of these mortgage rate factors?

When judging risk, the lender considers how likely you are to fall behind on payments (or stop making payments altogether), and how much money the lender could lose if the loan goes bad. The major factors are credit score and loan-to-value ratio.

Credit score

The lowest mortgage rates go to borrowers with credit scores of 740 or higher. These borrowers have the broadest choice of loan products.

Interest rates tend to be a little higher for borrowers with credit scores of 700 to 739. For borrowers with credit scores from 620 to 699, mortgage rates are even higher. These borrowers might find it difficult or impossible to get high-amount jumbo loans.

 With a credit score below 620, the interest rates are even higher and options are fewer. Most of the loans available at this level are insured or guaranteed by the government.

 A couple of ways to improve your credit score are to pay your bills on time and keep your credit-to-debt ratio low. Monitor your credit regularly to catch any discrepancies.

 Loan-to-value ratio

The loan-to-value ratio measures the mortgage amount compared with the home's price or value. Let's say you make a $20,000 down payment on a $100,000 house. The mortgage will be $80,000. You're borrowing 80% of the home's value, so your loan-to-value ratio is 80%.

 A bigger down payment gives you a smaller loan-to-value ratio, and a smaller down payment gives you a bigger loan-to-value ratio.

 If your loan-to-value ratio is greater than 80%, it's considered high, and it puts the lender at greater risk. This may result in a higher mortgage rate, especially when combined with a lower credit score. The loan will usually require mortgage insurance, too.

 Your loan to value ratio can be improved by saving more for a down payment or choosing a less expensive home.

 Other factors

Lenders may charge more for cash-out refinances, adjustable-rate mortgages and loans on manufactured homes, condominiums, second homes and investment properties because those loans are deemed riskier.

 If you’re just ready to begin the loan process or just have questions, I’m here to help. Call Scott Rojo at 916-548-3942.

400 Fontana Court, El Dorado Hills, CA 95762

400 FONTANA COURT, EL DORADO HILLS, CA 95762

5 Bedrooms | 4.5 Bathrooms | 3,357 Square Feet | .48 Acre | Swimming Pool & Spa | Solar

Exceptional quality Promontory residence situated in a quiet cul-de-sac along a greenbelt. Built by Christopherson Homes in 2005 and recently renovated, this 4,131 square foot estate showcases a main level guest suite, a den, resort-style backyard, solar, and a 4-car garage. As you enter the foyer, you are welcomed by the stunning box beams in the ceiling and the natural light that flows through the property. An office and a den with a closet are situated near the front of the functional floorplan. The great room concept is ideal for entertaining and includes the dining room, kitchen, family room, dining nook, and a private courtyard. The recently updated kitchen offers white cabinets, leathered quartz counters, new professional stainless appliances, a butler's pantry, a walk-in pantry, and a secondary dining bar. The main-level guest suite is spacious and inviting and features an en-suite bathroom.

Upstairs, a hallway leads to the remaining 2 bedrooms with private bathrooms, the master suite, and the laundry room. The generous master bedroom offers two walk-in closets and a spa-like bathroom with dual sinks, a soaking tub, a seated vanity area, and a large shower stall.

The private half-acre lot leaves nothing to be desired. The yard features an infinity edge heated pool and spa, an outdoor bar, a built-in BBQ, a covered patio, garden boxes, and plenty of space in the lower yard for a possible sports court. The pool safety enclosure is stored and can be easily put up and taken down. This elegant home presents an extra deep four-car garage and is located within walking distance of Lakeview Elementary School. Refined and luxurious, this is Northern California living at its finest!

The Promontory is one of the most sought-after places to live. Residents enjoy beautifully maintained landscapes, gated entry, one of the best neighborhood parks (ranked #3 “things to do in El Dorado Hills” according to Tripadvisor), and many amazing community events throughout the year. The Promontory also hosts top-ranked elementary, middle, and high schools. The prime location allows for easy access to nearby dining, shopping, Empire Ranch Golf Course, Folsom Lake, and more!

LISTED AT $1,675,000

2117 Summer Drive, El Dorado Hills, CA 95762

2117 SUMMER DRIVE, EL DORADO HILLS, CA 95762

5 Bedrooms | 4 Bathrooms | 3,357 Square Feet | .5 Acre | RV Access | Swimming Pool

Enjoy resort-like living every day in this striking two-story residence in the desirable community of WoodRidge. Situated on a half-acre, this exceptional home boasts 3,357 square feet, 5 bedrooms, 4 bathrooms, a loft, a 3-car garage, RV parking, and a swimming pool. As you enter through the covered porch, you are welcomed by the beautiful formal dining room and living room with vaulted ceilings. A guest bedroom and full bathroom are located on the main level. Chefs will enjoy the open and bright kitchen that features double ovens, a dining nook, a dining bar, and a separate island for food prep. The family room offers a fireplace and secondary staircase that leads to the remaining bedrooms, bathrooms, and loft. Retreat to the spacious upstairs master suite that includes a walk-in closet and spa-like bathroom with dual vanities, a shower stall, and a soaking tub. This elegant home presents the perfect “stay-cation” backyard with an oversized covered patio that overlooks the expansive park-like grounds with a swimming pool, croquet-worthy lawn, garden, and large wooden shed. Enjoy the highly desirable location that allows for an ideal El Dorado Hills lifestyle with award-winning schools, and easy access to the Oak Knoll Park, the Sienna Ridge Shopping Center, and the newly planned Bass Lake Regional Park. No HOA or Mello Roos!

LISTED AT $1,049,900

Seis De Mayo Fiesta

Thank you all who attended our first annual Fiesta! We loved getting to see all of your smiling faces. If you have photos, we would love it if you shared them with us!

Also, a big thank you to Scott Rojo with United Wholesale Lending for supplying the amazing mariachi band! It was such a fun time.

975 OLYMPIC COURT, EL DORADO HILLS, CA 95762

Rare opportunity to own a Palm Springs-style mid century modern home in El Dorado Hills. This magnificent single-level property is located in the desirable and coveted Park Village, with no HOA or Mello Roos. This classic design offers 1,676 square feet, three bedrooms, two full bathrooms, a newer HVAC, and a newer water heater. From the charming porch, step into the foyer which overlooks the great room. True to its architectural style, the picturesque windows extend from floor to ceiling to maximize natural light and the stone fireplace adds warmth to the open floorplan. The generous master suite boasts two closets, dual sinks, and access to a private back patio. The spacious laundry room doubles as a mudroom and adjoins the 2-car garage to the kitchen. Situated on a large half-acre lot; the private backyard presents an expansive back deck, hot tub, secondary deck for a pool, garden boxes, and an upper patio that features beautiful views of the foothills.

LISTED AT $649,900

April 2022 - Luxury Market Report for Lake Tahoe, California