FAQ

Home Mortgage Los Angeles Loan Types

Fixed Rate Home Mortgage Loans - If you would like the security of never having your monthly payment change, this is the mortgage that you will prefer. Your mortgage rate and payment are fixed for the life of your loan, whether the loan is 10, 15, 30 or 40 years. With current low rates on fixed rate home mortgages, this is an ideal solution for most borrowers of mortgage in Los Angeles. When rates are high, it sometimes makes sense to use an adjustable rate in hopes of lowering future interest costs.

FHA Home Mortgage Loans - FHA home mortages are loans insured by the Federal Housing Administration. Typically, FHA mortgage rates are often lower than comparable conventional mortgage loans. FHA backed home mortgage loans offer benefits such as down payments as low as 3.5%, easier qualification guidelines, and easier access to lenders, especially in tough mortgage markets as we are seeing in 2009-10.

Cash Out Home Mortgage Loans - If you need or want to make a substantial purchase or investment, using your home’s equity can be the least expensive option. Whether for college costs, unexpected medical expenses, the vacation of a lifetime, or a room addition, you can refinance your home mortgage loan to get cash for these purposes. You may find it more cost effective to use a Home Equity Line of Credit (HELOC), a traditional second trust deed, or refinance the first trust deed. We can help you with that decision.

Debt Consolidation Home Mortgage Loans - You may be paying very high interest on auto, personal lines, second trust deeds, credit cards or other financing. Any interest rate you are paying above 7 or 8% is substantially higher than what you would be paying using a mortgage in Los Angeles. Refinancing your home mortgage loan to consolidate other debt under one low mortgage rate can save you money and lower your monthly payments. Interest on home loans is tax deductible. An additional saving (or, effectively a further rate reduction) you don’t get with credit cards, car leases and the like.

Adjustable Rate Home Mortgage Loans - In some markets it may make sense to lower your monthly mortgage loan payment during the early years of your mortgage. Mortgage rates for ARMs are usually lower in the early years than traditional fixed rate programs. This can be especially true if you plan on selling or refinancing your home in less than 10 years. However, some adjustable rate home mortgage loans do not amortize fully or may even include reverse amortization. This means that you are not increasing the equity in your home as fast as you would in a conventional loan. If you lock in a rate for several years only, you risk interest rates increasing which in turn could result in your monthly payments going up.

Interest Only Home Mortgage Loans - Interest only home mortgage loans lower your initial monthly payments.  Besides helping your cash flow, this might allow you to leverage your funds to qualify for a larger loan amount than a loan that includes payments on the principle. One downside: you don’t generate equity in your home through paying down the principle.

Divorce Buyout Home Mortgage Loans - Divorce Buyout Mortgage are designed to provide a vehicle for one spouse to keep the house, get cash out if needed for any purpose, including paying off the other spouse, and remove the other spouse’s name from the current home loan.