If you've looked for a house in LA and received mortgage quotes from several places, you probably relate.

"My credit score is the same, and my salary is the same, so why are interest rates different at each bank?"

I initially thought banks would be somewhat similar. However, when you actually receive quotes, there are significant differences not only in rates but also in fees, points, and closing costs.

So, when buying a house in LA, it's a bit of a waste to make a decision right after getting Pre-Approval from one place. It's better to compare at least two or three options.

This is because home prices in LA are substantial.

As of mid-2026, the median home price in the city of LA is about $1.1 million. When looking at the entire LA County, it's around $937,000.

When home prices are around $1 million, even a 0.25% difference in interest rates can lead to a significant difference in interest paid over 30 years.

First, let's understand what a Conventional Loan is, which is commonly referred to as a standard mortgage.

LA County is an expensive area, so a higher Conforming Loan Limit applies compared to regular areas. As of 2026, the high-cost area limit for a one-unit home is $1,249,125.

Simply put, just because the loan amount falls within this limit doesn't mean that a home over $1 million automatically becomes a Jumbo Loan.

For example, if you buy a $1.1 million home and put down 20%, the loan amount would be $880,000. This is well within the limit.

On the other hand, if home prices rise in expensive school districts or the Westside, and the loan amount exceeds the limit, you will need to look into Jumbo Loans.

A Jumbo Loan, as the name suggests, is a loan for a large amount.

Each bank has different conditions, but they often scrutinize credit scores more closely and require sufficient cash and assets.

This means that if you only look at the home price to set your budget, you might change your mind after consulting about the loan.

Down payment is also important. If you put down less than 20% on a Conventional Loan, you typically have to pay for PMI, which is mortgage insurance.

Once you have enough equity in the home, you can eliminate PMI under certain conditions.

On the other hand, if you're short on cash or have a lower credit score, you might consider FHA loans.

With an FHA loan, if you meet the conditions, you can buy a home with as little as 3.5% down.

However, if you put down less than 10%, you will generally have to pay MIP, which is mortgage insurance premium, throughout the loan term, so you shouldn't just decide based on the lower initial payment.

What I think is important when comparing mortgages is to match the conditions exactly.

If you ask Bank A for a 20% down payment and Bank B for a 10% down payment and then ask, "Which is cheaper?" you won't be able to compare properly.

You need to get quotes with the same home price, down payment, loan type, and interest rate fixed period.

And don't just look at the interest rate; you should also consider the APR and fees.

Some places may seem appealing with low rates, but upon closer inspection, you might find that you need to pay several thousand dollars in points upfront.

For instance, if you pay $8,000 upfront to lower the rate but plan to sell the house in three years, will you be able to recoup that money?

Conversely, if you plan to live there for 15 or 20 years, paying points upfront to lower the rate might be beneficial in the long run.

People who have recently moved from Korea to the U.S. face another issue.

They may have money but a short credit history in the U.S. In such cases, just because one bank says it's difficult doesn't mean it's the end of the road.

How overseas assets or income documentation is recognized varies by financial institutions and loan programs, so it's essential to explore other options.

Ultimately, in LA, you should compare mortgage options before choosing a home, not after.

Especially when buying a home around $1 million, failing to compare interest rates and fees properly could mean missing out on a significant amount of money.

It may take a few days to call two or three banks.

However, considering it's money you'll be paying off for 30 years, those few days are worth it.