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California home mortgage Loan Programs
There are many home mortgage programs available - too numerous to cover them all, we've highlighted the programs more commonly offered today.
Characteristics of each loan program are unique, so consult your California home mortgage professional for more information and to become
familiar with the details of the programs available to you.
To help determine the best home mortgage program for you, consider the following:
- How important is home mortgage payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate home mortgage.
- How important is rapid home equity buildup? If rapid home equity buildup is a factor, consider a shorter home mortgage amortization period, such as a 15-year, fixed-rate home mortgage.
- Do you anticipate increasing or stable income? If income growth is anticipated, you could take advantage of an ARM or a temporary buydown.
- Other home mortgage factors to consider include:
- ability to qualify for the loan amount selected
- anticipated term of occupancy
- possibility of significant interest rate changes
- existence of up-front costs
| California home mortgage Programs |
Characteristics |
| 15 and 30 Year Fixed Rate Home Mortgages |
- Interest rate does not change.
- Principal and interest (P & I) does not change.
- Fixed rate home mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term.
- Different loan terms are available (15 and 30 year terms are most popular).
- The shorter the term, the faster equity is built and the loan is paid off.
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| Fixed Rate Balloon Loan |
- P & I payment and interest rate do not change.
- Regular monthly P & I payments are based on 30 year amortization, while the unpaid balance (balloon) is due at the end of a shorter, predetermined term, typically 5, 7 or 10 years.
- Interest rate is typically less than fixed-rate loans.
- Most borrowers anticipate refinancing or selling prior to the end of the balloon term.
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| Fixed Rate Home Mortgage with Temporary Buydown |
- Borrowers or the seller may pay to temporarily "buy down," or lower, the loan interest rate.
- Decreased loan interest rate reduces the monthly payment.
- Lower interest rate may help borrowers qualify more easily; qualifying factors may vary.
- Interest rate & payment is typically reduced for 1, 2 or 3 years
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| Interest Only Home Mortgage |
- There are no reductions to the loan principal amount.
- There is no provision for negative amortization.
- Payments may increase up to an amortized amount, but the loan balance itself does not increase.
- Generally, interest-only payments are limited to the first 5, 10 or 15 years of the loan.
- After that, the loan is amortized for the remainder of its term
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| Adjustable Rate Home Mortgages (ARMs) |
- There is potential for the interest rate & payment to fluctuate.
- ARMs transfer to borrowers a portion of the risk associated with a changing economy.
- In exchange for sharing the risk, ARMs offer borrowers initial interest rates that are substantially lower than fixed-rate home mortgages.
- The lower interest rate may help borrowers qualify more easily; qualifying factors may vary.
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California Home Mortgage Company provides loan solutions for the following states: Colorado, and California. |
 
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California Home Mortgage Company
and Real Estate Loans 4 You Inc.
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