Looking for help to purchase a new home in California or to refinance your existing mortgage at current rates? By analyzing California Loan Rates comprehensively you can find out how to consolidate your debt using your equity. Most individuals are not aware of the benefits to purchasing a home that besides buying the home you can take out an amount to cover your current debts as well and pay all debt and your home loan in one monthly payment.

Banks determine their California loan rates based upon many factors, including bank rate or discount rate. This is the rate the central bank, US Federal Reserve (Fed) charges from banks for loans and advances given to them. Mortgage rates depend upon bank rates. So, if you monitor the mortgage trends carefully, you will get a better chance of getting loans at lowest possible interest rates.

Like lending rates of banks, California Loan Rates depends upon three ratios:

1. The Loan-To-Value Ratio (LTVR)

2. Debt ratio (DS)

3. Debt Service Coverage Ratio (DSCR)

Loan-To-Value Ratio is the total loan balance divided by the fair market value. Debt ratio is calculated by dividing the all the monthly outgoings divided by the borrower