Tomo Mortgage

See which credit unions and banks have low mortgage rates in CA

A good rate for a primary, single-family home in for , and credit score is:

5.96% - 6.12%

Histogram showing 3 data points from 5.96% to 6.59%. Use Tab to navigate between segments, and Enter to select a bar.

5.96%6.12%6.28%6.43%6.59%

TrueRatefound 72 lenders for you

Rates updated Jan 8, 2026

Insights

Negotiate everything—rates, fees, and terms are not set in stone.

Portrait of George Robinson, TrueRate Data ScientistGeorge RobinsonTrueRate Data Scientist

Lenders with low rates in CA

TrueRate analyzed the rates lenders actually gave to buyers for the last three years and found only 4 lenders likely to get you a good deal.

LenderLender fees
Customer reviews
Highly ratedHighly rated
Highly ratedHighly rated
Mixed reviewsMixed reviews
AverageAverage

Insights

Negotiate everything—rates, fees, and terms are not set in stone.

Portrait of George Robinson, TrueRate Data ScientistGeorge RobinsonTrueRate Data Scientist

Lenders in CA likely to have high rates

We don’t accept advertising, so you can get the real lender story. TrueRate looked at 72 lenders and found that these 4 are likely to offer you a high rate.

LenderLender fees
Customer reviews
Above averageAbove average
Limited reviewsLimited reviews
Mixed reviewsMixed reviews
MixedMixed

Insights

Whether a lender has high margins or is simply inefficient and passing their costs on to you, the result is the same—you’ll likely end up paying more for your home. Our data shows that if you choose these lenders you will likely regret it.

Portrait of George Robinson, TrueRate Data ScientistGeorge RobinsonTrueRate Data Scientist

Lenders with average rates in CA

You deserve better than what these 64 lenders historically provide.

Don’t let lenders pull a fast one on you

Learn how really low rates often come with hidden fees. Drag the slider to see how rates and fees are connected.

5.96% - 6.12%

Insights

TrueRate compares lenders based on their 0 points or par rate. You should use this rate when comparing lenders.
Portrait of James McTernan, Tomo Mortgage Loan AdvisorInsights by James McTernanTomo Mortgage Loan Advisor - NMLS #1112719

TrueRate report

Buying a home shouldn’t feel impossible—see what’s driving buyer stress in 2025.

What is TrueRate by Tomo Mortgage?

TrueRate is a tool for homebuyers, created by Tomo Mortgage. It uses AI and analytical models to show you what a fair mortgage rate really looks like—your “true rate”—based on your unique financial situation and real market conditions. It strips out all the bait-and-switch pricing you see all over the internet, such as rates advertised with big point fees hiding in the fine print.

Instead of giving you a one-size-fits-all estimate, TrueRate calculates what rate you should be looking for that day, using the same kinds of data that lenders themselves rely on to provide their own rate information. We’re just making it all public for the first time. You’ll be able to see whether an interest rate offered by a bank, credit union, or mortgage company is low, average, or too high—before you agree to anything.

We believe in transparency. Here’s how we crunched the numbers.

See our TrueRate methodology

How do mortgage rates at credit unions and banks compare?

By Will Begeny, TrueRate Editor, and George Robinson, Chief Data Scientist

When it comes to getting a mortgage, many homebuyers start by comparing offers—typically, based on the interest rate—from both banks and credit unions. But advertised rates don’t always tell the full story.

To help figure out which mortgage companies offer low interest rates, we created a model: TrueRate. The model is based on roughly one million real home loans (and we’re adding more daily), from over 1,000 regional and national banks, local credit unions, and independent and online mortgage companies. With all this data, we’re able to see which lender offers low rates most often, and how that compares to the industry average.

TrueRate shows that a number of credit unions offer lower interest rates, on average, compared to large national lenders and big banks. But this isn’t every credit union. And the analysis is limited to 30-year fixed-rate primary mortgages (i.e., the most common loan type) at this time.

Here are some of the key findings in our analysis:

  • Some local credit unions offer mortgage interest rates in the top 30th percentile (i.e., rates lower than 70% of all other lenders) more often than large national banks.
  • Larger lenders, overall, tend to have higher mortgage origination fees (i.e., fees added to the cost of the loan), than smaller lenders, as our analysis of lender fees reveals.
  • Independent mortgage companies can fall in both extremes—exceptionally high and exceptionally low rates and fees. Tomo Mortgage is one of the few independent mortgage companies that offers similar low rate ranges as local credit unions, but also has the advantage of $0 lender fees.

Unfortunately, there’s no single definitive answer to “who has the best rates,” in every situation for everyone, or even on any given day. Interest rates often vary widely by lender, loan type, and your personal financial profile. Not every credit union is set up to offer the most competitive rates all the time. It’s important to reach out to multiple lenders—whether that’s a big bank, a credit union, or a mortgage company like Tomo Mortgage—to see who has the lowest rates and fees for you.

Frequently asked questions

Here’s a quick look at how average mortgage rates have moved over the past several years, across all mortgage lenders (banks, credit unions, and independent mortgage companies).

Year / Avg 30-year fixed rate

YearAvg 30-year fixed rateWhat drove rates?
2018 / ~4.54%2018~4.54%Fed rate hikes increased borrowing costs across banks and credit unions.
2019 / ~3.94%2019~3.94%Economic slowdown led to Fed rate cuts; credit unions began lowering rates.
2020 / ~3.11%2020~3.11%Pandemic uncertainty triggered record-low mortgage rates across the board.
2021 / ~2.96%2021~2.96%Credit unions and banks hit historic lows as demand soared.
2022 / ~5.34%2022~5.34%Inflation surged; the Fed responded with aggressive hikes, pushing bank rates higher.
2023 / ~6.80%2023~6.80%Volatility and inflation kept rates elevated; credit unions offered some relief.
2024 / ~6.72%2024~6.72%Rates stabilized slightly; smaller lenders and credit unions offered competitive pricing.
2025 / ~6.35%2025~6.35%So far this year, mortgage rates at banks and credit unions range from 6.35% to 7.04%.

To more accurately compare rates apples-to-apples, Tomo Mortgage created TrueRate to model the “true rate” different banks and credit unions, as well as other mortgage companies, are charging real home buyers. It uses actual rates from real borrowers to give you a transparent view.

We recommend talking to multiple lenders listed on TrueRate, and requesting an official loan estimate from each of them so that you have all the information you need to make an informed decision.

Here’s what to watch for when shopping rates:

Note that many homebuyers start by looking at online quotes and offers from banks and credit unions, such as the information listed on their website. While this can be a helpful way to explore some of your options, these advertised rates don’t always tell the full story.

Now, whether it’s a credit union or a bank, what you’re quoted depends on:

  • Your credit score
  • Your loan-to-value ratio
  • Discount points or fees (which many lenders bake into low “advertised” rates)
  • The lender’s business model

Note that some banks rely on “bait and switch” tactics when advertising rates online. They might show you interest rates online that only apply to an ideal buyer with perfect credit, for example. Or, more often, they only show rates with really high upfront fees. Looking at the APR, and making sure that the APR and interest rate are the same (or nearly the same), is a good way to assess the real price of the mortgage.

Let’s talk about buying a house in California

Buying a home in California is no easy task. High mortgage rates are tough enough—but when paired with California’s extremely high home prices, buying a home is even harder.

Let’s start with mortgage rates. After peaking in recent years, rates are finally starting to come down in 2024 and 2025. That’s welcome news for buyers hoping to avoid locking in a 30-year fixed mortgage in the 7% range. But in California, where home prices are some of the highest in the country, even a small change in interest rates can have a big impact on affordability. That’s why it’s more important than ever to shop around for the best possible rate.

In major areas like San Francisco, Los Angeles, and Silicon Valley, median home prices are easily in the million-dollar range. Cities like San Diego and Orange County aren’t far behind.

Still, California remains highly desirable. With its sunny weather, booming tech industry, and diverse lifestyle offerings, the state continues to attract buyers. Demand remains strong, particularly in tech-driven regions, and a limited housing supply means that prices haven’t dropped as much as some buyers may have hoped—even as rates have started to ease.

There are, however, programs that can help. First-time homebuyers and those who qualify for FHA loans may benefit from lower down payment requirements and reduced mortgage insurance costs, making homeownership a bit more accessible.

So, what does the 2024 California housing market look like? It’s defined by high interest rates, steep home prices, and strong demand—but also by opportunity for those who are prepared. Finding a good deal often takes patience, persistence, and sometimes a willingness to consider a fixer-upper in exchange for a shot at the California dream.