Home mortgage loan california
Mortgage loan is a wide term that can include a number of things like mortgage for purchasing a house, refinance mortgage, home equity loans, cash-out refinancing, etc . for all these your house acts as a collateral.
There are a number of mortgage lenders in California but before you approach a lender for a mortgage loan you are required to be familiar with certain terms so that you can understand the mortgage better and negotiate with the lender on various terms .
Interest rates : The interest rate is the additional amount charged by the lender on the principal of the mortgage .The interest rate is decided by the lender based on a number of things like the credit score, the credit worthiness of the borrower, the amount of loan that is being borrowed, the security given by the borrower and the down payment amount .If you have a good credit history then you can qualify for a low interest loan and at times for a zero down payment loan also . There are basically tow types of interest rates
Fixed interest rate: The interest rates would be fixed for the entire life of the new home mortgage . This would mean that your monthly payments would also be fixed.
Variable interest rate: The interest rate would vary according to the market interest rates . You would have to pay a different interest rate every month .
At present the interest rates in California are as follows:
30 Yr Fixed 5.72%
15 Yr Fixed 5.25%
1 Yr ARM 5.00%
Fed Prime 6.00%
30 Yr Tres 4.51%
Fees charged by the lender: When you take a mortgage the lender would typically charge you fees like application fees, processing fees, the mortgage insurance fees, discount fees, origination fees, appraisal fees, legal fees etc . When you read the loan agreement you should typically check the various fees that is being charged by the lender . There are a number of fees and costs that are often hidden but you should make sure that you ask the lender about all the fees that are being charged .
The down payment: When you take a mortgage you are supposed to pay a down payment for it.Usually while giving out the mortgage loan quote the lender would ask you about the down payment that you can give . Based on the amount of down payment your interest rate is decided ..
The default terms: The lenders would mention the terms of default on the loan agreement .According to these terms the lender would rule the charges, penalties and the conditions that would be taken against you if you default on the loans . These terms are very important and should be read very carefully.
Due Date: This is also one of the most important factors that need to be mentioned in the loans agreement . This is the time in which the principal is supposed to be paid back.This would determine the end period of the loan and the whole amount is to be paid back by this date ..
Pre payment penalties: These are charged when the borrower opts to payback the loan before the due date. You should always check whether the loan agreement mentions the pre payment penalty or not .
DocumentationWhen taking mortgage
loan you are required to provide the lender with a number of documents . Some of
these documents include:
Qualifying for mortgage loan
When the lender gives out the mortgage loan he would look into various aspects . The first this would be your credit score.If you have a good credit score then qualifying for the new home mortgage is not a difficult task . The lenders would also look into options like whether you would be able to pay back the loan on time or not and your monthly income . If you fulfill these criteria then qualifying for the new home mortgage would not be a difficult task. This does not mean that people who have bad credit do not qualify for new home mortgage ..
Before you take a new home mortgage you should be sure that you have compared the rates from various lenders and then taken a decision. Besides you should also read the terms and conditions of the new home mortgage properly . If you have any doubts then you should clarify them with the lender directly.
Lenders in CaliforniaSome of the mortgage lenders in California are mentioned below.
RMI Lending Inc.:
You can contact them at 1873 Clifford St, Santa Clara, CA 95050; phone: 888-899-4537 for more details.
Bank of America:
Contact them at 1010 El Camino Real, Menlo Park, CA 94025-4345; phone: 888-638-3817
Light House Home Loans:
Contact them at 9420 Topanga Canyon Blvd. #205, Chatsworth, CA 91311; (818) 920-1600 Phone, (818) 920-4750 Fax, email Patricia@yourmtglender.com.
Universal Residential Funding:
You can contact them at 2522 Chambers Road, Tustin, CA 92780 ; phone: 866-978-5028
Merit Funding Inc.:
You can contact them at 2065 Ygnacio Valley Rd, Walnut Creek, CA 94598; 925-939-7283 or Toll Free 1-877-904-0300, Fax: 925-938-7206.
California Capital Mortgage:
You can contact them at 5627 Stoneridge Drive, Suite 315, Pleasanton, Ca 94588 ; Phone: 925-847-3038, Fax: 925-396-6189.
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