• Toni F. Ryan

Types of Home Loans Available for California Home Buyers





There are many home loan types to consider when seeking financing to purchase a home.  The loan you choose will have a long term effect on your financial picture so it is important that you understand your options before you commit.

• Fixed Rate Mortgages 

Fixed rate mortgages are probably the most popular loan due to the fact that the payment stays the same throughout the life of the loan. Each monthly payment is comprised of a portion to pay the principle of the loan and the interest on that loan.  Many times the monthly payment can include the payment for the taxes and insurance due on the home.  The payments continue for a pre-determined time after which the home is paid off.  The most common terms are 30 year and 15 year.

• FHA Loans 

An FHA loan is insured by the government so and additional insurance premium fee is included in the monthly payment and at the time of the loan funding.  These loans are attractive because the down payment requirement is 3.5% of the home value and the rates are often lower.

• FHA HECM (Reverse) Mortgages 

FHA  also allows homes to be purchased using an FHA reverse mortgage as long as the borrowers are age 62 or older.  This loan allows the buyer to put approximately 30% down and have no monthly principle and interest payment as long as they live in the home as their primary residence.

• VA Loans

 These loans are like FHA in that they are insured by the government.  These programs are available to veterans who have served in the Armed Forces.  The key feature to this loan is that there is no down payment required.

• Adjustable Rate Mortgages 

These loan options have a pre-determined period with a fixed interest and fixed monthly payment. These periods are usually 5, 7 or 10 years. At the end of this period, the interest can adjust based upon the market index that the loan is tied to and therefore the monthly payment can increase.  Borrowers must be cautious when entering into these loan programs but this option can be a useful tool to keep payments lower for a period of time, before which the buyer knows that they may be moving or selling.

This information is general in nature and only a licensed mortgage professional can give you the specifics that will fit your individual situation.  Knowing the options that are available is important to making one of the most important financial decisions easier.



ABOUT THE AUTHOR


Toni F. Ryan | NMLS#230507

Senior Loan Officer | Synergy One Lending


Toni F. Ryan has over 20 years experience in mortgage lending - both on the wholesale and retail levels. She believes that education is key to making the best decision for YOU! She shares her insight into the lending world here and encourages your feedback. Don't forget to connect on Facebook!

The information contained herein is for informational purposes and should not be construed as personal advice. Please consult your mortgage professional BEFORE making any changes to your financial profile. No guarantees or promises are expressed and by visiting this site, you agree to not hold Toni F. Ryan or Synergy One Lending responsible for any decisions you make based on the information stated. All of the content here is the sole property of ToniRyan.com and cannot be duplicated without express written consent. If you choose to reference this material - please include a link to the source and state the authorship clearly.Synergy One Lending is licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act, Synergy One Lending Inc. NMLS 1025894. 3131 Camino Del Rio N 190, San Diego, CA 92108

© 2020 by Toni F. Ryan - NMLS#230507

Direct/Text (530) 305-7668  |  tryan@S1L.com

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(530) 305-7668

Synergy One Lending Inc., NMLS 1025894. 3131 Camino Del Rio N 190, San Diego, CA 92108. Alabama Consumer Credit License #22123; Arizona Mortgage Banker License 0926603; Arkansas Combination Mortgage Banker/Broker/Servicer License 109250; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act – California License 4131356; District of Columbia Mortgage Dual Authority License MLB1025894; Hawaii Mortgage Loan Originator Company License #HI-1025894; Illinois Residential Mortgage Licensee #MB.6761115; Maine Supervised Lender License 1025894; Maryland Commissioner of Financial Regulation - Mortgage Lender License 21678; Minnesota Residential Mortgage Originator Exemption #MN-OX-1025894; Nevada Mortgage Broker License #4317. Licensed by the New Hampshire Banking Department 19926-MB; Licensed by the New Jersey Banking and Insurance Department – New Jersey Residential Mortgage Lender License 1025894; New Mexico Mortgage Loan Company License 1025894; Oregon Mortgage Lending License ML- 5208; Rhode Island Lender License #20163229LL. Rhode Island Loan Broker License #20163230LB; Vermont Lender License 6891. Washington Consumer Loan Company License CL-1025894. Toll Free #: (877) 978-1922. Subject to Credit Approval. www.nmlsconsumeraccess.org

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