Knowing the Different Types of Mortgage Loans in California

The real estate industry in the US, and especially California, is showing strong signs of revival. Real estate experts have concluded that the real estate sector is gaining its momentum slowly but steadily and the trend will continue for the rest of the year. Therefore, for prospective home buyers, it is the right time to brush up their knowledge on home mortgage loan options.

Being a premier mortgage broker in California for years now, we understand and recommend to our clients that choosing the right mortgage loan is extremely essential. By choosing a home and a mortgage properly it helps to ensure long term success for our clients. If you too want to buy your home at the best low rate mortgage loans in California then All California Lending can help. With many options to choose from, there is a loan option perfect for you. Choose the one that will most suitable for your budget:

Generally, homebuyers can find the following types of mortgage loans in California that include:

● Fixed-Rate Mortgage

A fixed-rate mortgage is a kind of home mortgage loan where one pays off the mortgage over a fixed period of time and at a fixed rate of interest regardless of the changes and trends that may affect rates of interest so they may go up or down. You can select from loans paid over 10, 15, 20, 30, or even 40 years.

● FHA Mortgage

FHA loans are another type of home mortgage loan that is insured by the government through the Federal Housing Administration. It is done through mortgage insurance which is financed into the loan. It is a better choice for first-time homebuyers who can take advantage of incentives such as low or no down payments and lesser or no credit score requirements.

● VA Mortgage

The VA mortgage loans are also issued by the government. It is meant for former US veterans as well as to the spouses of the deceased veterans. The requirements for such a loan are different and there are different criteria used for deciding who qualifies for the loan. It includes the factors such as the years one served and if their discharge was honorable or not. The best benefit of such type of loan is that there is no requirement for a down payment. This loan is funded by a conventional lender but is guaranteed by the Department of Veteran Affairs.

Buying a home is one of the biggest investments and expensive assets one can own, which is why it is necessary for the home buyer to make smart decisions. Among the different smart decisions choosing the best low rate mortgage loans in California plays a big part. Being realistic about what you can and cannot afford to avoid defaulting and facing possible retrieval and foreclosure.

We, All California Lending can help you with finding the best low-rate mortgage loans in California. So get in touch with us today!