California Home Loan - Home Refinance, Mortgage and Equity Loans
California Home Loan and Refinance Programs
Why are so many people in California refinancing their home loan? This home loan refinance
page will answer most questions that will help you decide if mortgage refinancing is right for
you. You will find that the California refinance and mortgage loan process is the same as when
you first obtained your original mortgage.
Home appreciation rates have assisted California homeowners to refinance and use the additional
equity they've gained to get cash back, cash-out, to consolidate credit debt, pay off second
mortgages, do home improvements to their houses, or even purchase a second home or California
investment property. New California home loans and mortgage loan programs. Over the past few
years, there have been many new home loan programs rolled out in California that can dramatically
lower your monthly home loan mortgage payments. Now is a great time to learn about your home loan
refinancing options.
Let us help you get started on your California Home Loan Application today!!!
First Time Home Buyer Mortgage Home Loan Programs
First time home buyers in California can face a difficult task in searching for home loan financing,
but at Heartland Financial Corporation, we can help assist you in this venture. With many different
mortgage loan programs to choose from, including first time buyer home loan programs, which sometimes
require little or no money down, we have a loan that can be custom tailored to fit your needs. Selecting
the right mortgage may be the most important business decision you make. As a first time home buyer in
California, you will certainly want a professional with experience who can explain all of your mortgage
loan options in understandable terms. We have thousands of home loan programs to choose from, and will
help make your first time mortgage decision easier. Additionally, we can get you pre-qualified and
pre-approved quickly to help give you leverage when negotiating with a seller, which could potentially
saving you thousands of dollars.
Credit History - No Credit or Bad Credit Home Loan Programs
Regardless of your credit history, we are able to help you with your first time home mortgage in
California. Whether your credit is excellent, challenged, average, fair or bad we can put together a home
loan program plan that will fit your needs and keep your monthly mortgage payment at a level you and your
family can be comfortable with. Additionally, we can assist in partnering you with a professional real
estate agent in your area to help you find the best home at the best terms for your needs. For more
information regarding purchasing or selling your home, contact a professional agent at
Heartland Homes Corporation or by checking out
California Realtor & Real Estate Network.
Fixed Rate Mortgage Home Loans
The traditional fixed rate mortgage home loan is the most common type of home loan programs
available, where the monthly principal and interest mortgage payments never change during the
life of the home loan. Fixed rate mortgages in California are available in different terms
ranging from 10 to 30 years and can be paid off at any time usually without any penalty. This
type of mortgage is structured, or "amortized" so that it will be completely paid off by the
end of the home loan term. There are also "bi-weekly" mortgage home loans, which shorten the
loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a
year, you make 26 payments, or 13 "months" worth, every year.)
Even though you have a fixed rate home loan mortgage, your monthly mortgage payment may vary
if you have an "impound account". In addition to the monthly home loan payment, some California
home loan lenders collect additional money each month (from clients who put less than 20% cash
down when purchasing their home) for the prorated monthly cost of property taxes and homeowners
insurance. The extra money is put in an impound account by the California home loan lender who
uses it to pay the borrowers' property taxes and homeowners insurance premium when they are due.
If either the property tax or the insurance happens to change, the borrower's monthly home loan
payment will be adjusted accordingly. However, the overall payments in a fixed rate home loan
mortgage are very stable and predictable.
Additional information on California Home Loans can be found here.
Adjustable Rate Mortgage Home Loans
Adjustable Rate Mortgages (ARM)'s are home loans where the interest rate can vary during the home
loan's term. These loans usually have a fixed interest rate for an initial period of time and then
can adjust based on current market mortgage conditions. The initial start rate on a California ARM
is lower than on a fixed rate home loan mortgage which allows you to afford and hence purchase a
more expensive home. Adjustable rate home loans and mortgages are usually amortized over a period
of 30 years with the initial rate being fixed for anywhere from 1 month to 10 years. All ARM home
loans have a "margin" plus an "index." Margins on home loans range from 1.75% to 3.5% depending on
the index and the amount financed in relation to the property value. The index is the financial
instrument that the ARM loan is tied to such as: 1-Year Treasury Security, LIBOR (London Interbank
Offered Rate), Prime, 6-Month Certificate of Deposit (CD) and the 11th District Cost of Funds (COFI).
When the time comes for the ARM to adjust, the margin will be added to the index and typically
rounded to the nearest 1/8 of one percent to arrive at the new interest rate. That rate will then be
fixed for the next adjustment period. This adjustment usually occurs every year, but there are factors
limiting how much the interest rates can adjust. These factors are called "caps". Suppose you had a
"3/1 ARM" with an initial cap of 2%, a lifetime cap of 6%, and initial mortgage interest rate of
6.25%. The highest rate you could have in the fourth year would be 8.25%, and the highest interest rate
you could have during the life of the loan would be 12.25%.
Some ARM home loans have a conversion feature that will allow you to convert the loan from an
adjustable interest rate to a fixed interest rate. There is a minimal charge to convert; however, the
conversion rate is usually slightly higher than the mortgage market rate that the California home lender
could provide you at that time by refinancing.
Additional information on California Home Loans can be found here.
Hybrid ARM Home Loan Programs (3/1 ARM, 5/1 ARM, 7/1 ARM and 10/1 ARM)
Hybrid ARM home loan mortgages, are also called fixed-period ARM’s, which combine the features
of both a fixed-rate home loan and adjustable-rate home loan mortgages. A hybrid home loan starts out
with an interest rate that is fixed for a period of years (usually 3, 5, 7 or 10). Then, the loan converts
to an ARM home loan for a set number of years. An example would be a 30-year hybrid home loan with a
fixed interest rate for seven years and an adjustable interest rate for 23 years.
The beauty of a fixed-period ARM home loan is that the initial interest rate for the fixed period
of the loan is lower than the interest rate would be on a standard mortgage that's fixed for 30 years,
sometimes significantly. Hence you can enjoy a lower interest rate while having some period of stability
for your home loan payments. A typical one-year ARM home loan on the other hand, goes to a new interest
rate every year, starting 12 months after the home loan is taken out. So while the starting rate on ARM’s
home loans are considerably lower than on a standard home loan mortgage in California, they carry the
risk of future hikes.
California Homeowners can get a hybrid and hope to refinance as the initial term expires. These types
of home loans are best for people who do not intend to live long in their homes. By getting a lower
interest rate and lower monthly mortgage payments than with a 30- or 15-year interest home loan, they can
break even more quickly on refinancing costs such as title insurance and the appraisal fee. Since the
monthly home loan payment will be lower, borrowers can make extra payments and pay off the loan early;
saving thousands during the years they have the home loan.
Additional information on California Home Loans can be found here.
Interest Only Home Loan Programs
Interest only California home loans are loans where you pay interest only for a period of time. Having
the interest only payment, your monthly home loan payment will be lower than it would be with a standard
interest and principal mortgage loan payment. Your mortgage interest rate typically is lower than a
traditional mortgage, and you have the option of flexible monthly mortgage payments.
Interest only home loans and mortgage loans allow you to free up your cash flow. Most California real
estate investors are using the interest only home loan option to purchase investment properties.
Why should I consider an Interest only home loan?
On a standard 30-year fixed-rate home loan most of the monthly payment goes towards interest during the
first half of the loan. It is not until approximately 15 years into the loan, that you are paying half
principal and half interest. Interest only home loans and mortgage loans are particularly good for those
planning to live in their home for less than ten years. The average California homeowner stays in their
home between four and six years. Interest only home loans and mortgage loans let you make a lower monthly
home loan mortgage payment for this period of time, which allows you to pay down your higher interest debt
like credit cards, and other installment debt. Depending on your home loan mortgage amount you could have
access to thousands of dollars over the course of several years to invest or reduce your higher interest debt.
But what about building equity in my home?
Many people believe that if you're not paying down the mortgage principal you're not building equity in
your home. Homes throughout California have been appreciating up to 20% a year or more. Chances are that
even if you're not paying down your mortgage principal, you're building the equity in your home through
appreciation, and at a much quicker pace than you could ever pay your home loan down.
But I like the security of a fixed rate home loan…
There are some great interest only home loans and programs available now that give you the best of both
worlds. We have home loan programs available that are fixed for 30 years, giving you up to 15 years of interest
only mortgage payments, after which you pay mortgage principal and interest amortized over the remainder of the
term of the home loan, keeping your interest rate locked in. Another popular interest only home loan program is
the pick-a-payment option arm home loans. These home loans give you four mortgage payments to choose from each
and every month, including the interest only, 30 year fixed, 15 year fixed and a minimum mortgage payment even
lower than the interest only option loan.
Let us help you get started on your California Home Loan Application today!!!
Specializing in these California Home Loans Metro Areas in California:
Adelanto | Alta Loma
| Apple Valley | Applevalley | Barstow | Banning | Beaumont | Bloomington
| Canyon Lake | Chino | Chino Hills | Colton | Corona | Fontana | Grand
Terrace | Hemet | Hesperia | High Desert | Highland | Inland Empire
| Lake Elsinore | Loma Linda | Lucerne Valley | Menifee | Mira Loma
| Montclair | Moreno Valley | Murrieta | Norco | Nuevo | Ontario | Palm
Desert | Palm Springs | Perris | Phelan | Rancho | Rancho Cucamonga
| Redlands | Rialto | Riverside | San Bernardino | San Jacinto | Temecula
| Twentynine Palms | Upland | Victorville | Victorvalley
