Mortgage Loan Santa Ana Home Loans in California Mortgage Broker CA Mortgage Rates

When you begin window-shopping for a home, you will soon find out that the number of houses available is almost outdone by the number and variety of Santa Ana Home Loans available. Every year, lenders come up with new and innovative ways to package mortgages. They tweak them with complex interest rate schedules, they simplify them with basic low-cost approval and closing processes; and they trick them out with bells and whistles that are the latest up-to-date version of the reinvention of the wheel in terms of Santa Ana Home Loans.

Doing Santa Ana Home Loan Research

Yes, it can be overwhelming. But no, it doesn’t really have to be. To shop for Santa Ana Home Loan without getting bogged down in frills and dog and pony shows – and without wasting time with mortgages that are not appropriate for your particular needs – it is a good idea to first do some homework.

Talk to a mortgage advisor, or visit the Internet and research basic articles about how the mortgage business works for consumers looking to purchase a home. Familiarize yourself with the basic jargon, and the basic types of mortgage loans. Once you are up to speed enough to understand the mortgage loan process, the difference between an ARM and a fixed rate, you will also be well on your way to knowing the difference between paying an arm and a leg and getting a bargain.

Ask yourself a few basic questions:

How long will I live in the house?
How much money do I want to use for the down payment?
How much do I want to pay each month?
Do I think interest rates are going up for the long term, down, or sideways?
Do I have enough liquid assets to satisfy my lender’s reserve requirement? (Confirm your reserve requirements with your mortgage advisor.)
Have I been employed in the same line of work within the last two years?
Can I verify at least two years of rental or mortgage history?

Once you have the answers, you will be ready to consult lenders to help you clarify your goals and find loans that are tailored to suit you. Don’t be afraid to ask your lenders any questions you believe are important, compare prices and terms, and be honest. If their competitor offers a better deal, say so. They will probably try to beat it, and by doing so, you’ll come out a winner.

Optionwide Home Loans provides detail information on real estate loans to all homebuyers and homeowners with all types of credit and financing needs. For more information on your California loans visit us at http://www.Optionwide.com.

Which Santa Ana loan is right for me?

Years you plan to stay in the home	Recommended program
1-3 years	3/1 ARM, 1 year ARM or 6 month ARM
3-5 years	5/1 ARM
5-7 years	7/1 ARM
7-10 years	10/1 ARM, 30 year fixed or 15 year fixed
10+ years	30 year fixed or 15 year fixed

Loan Program	Advantages	Disadvantages
Fixed Rate Mortgages 30 year fixed 15 year fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected if rates go up Can refinance if rates go down	Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve

Loan Program	Advantages	Disadvantages
Adjustable Rate Mortgages (ARM) 10/1 ARM 7/1 ARM 5/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	Lower initial monthly payment Rates and payments may go down if rates improve May qualify for higher loan amounts 30 year term, no balloon payment	More risk Payments may change over time Potential for higher payments if rates increase

Loan Program	Advantages	Disadvantages
Balloon Mortgages 7 year 5 year	Lower initial monthly payment Lower payment for a predetermined period of time Many balloon mortgages offer the option to convert to a new loan after the initial term	Risk of rates being higher at the end of the initial fixed period Risk of foreclosure if you cannot make balloon payment, refinance, or exercise the conversion option Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term

Loan Program	Advantages	Disadvantages
First Time Buyer Programs	Lower down payment Easier to qualify Lower rates may be available	May be subject to income and property value limitations Some government subsidized programs may generate a recapture tax if you sell the house too soon Education courses may be required to qualify for these loans

Loan Program	Advantages	Disadvantages
Stated Income Programs	Don't need to verify income Faster approval Good for borrowers who may not qualify with a full income documentation program	Higher rates Higher down payment

Loan Program	Advantages	Disadvantages
Interest Only Programs	You have several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full normal payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

Loan Program	Advantages	Disadvantages
No point, No fee Programs	No out-of-pocket loan costs at closing Closing costs are paid from the lender rebate Less money required to close Refinance without increasing your loan amount	Higher rates Higher payments Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you Some require a prepayment penalty for the first one to five years

Loan Program	Advantages	Disadvantages
Imperfect Credit Programs	Potential for reestablishing credit if you pay your mortgage on time When used for debt consolidation, you may be able to reduce your monthly debt payment	Higher rates Terms may not be as favorable Harder to get long-term fixed loans Loans may have prepayment penalties

Loan Program	Advantages	Disadvantages
Home Equity Line of Credit	You only borrow what you need Pay interest only on what you borrow Flexible access to funds Interest may be tax deductible May be free of closing costs A good source for an emergency fund, if set up in advance Can be used for debt consolidation and lower payments Rates are usually lower than consumer loan or credit card rates	Rates can change. The maximum interest rate can be relatively high Payments can change Harder to refinance your first mortgage

Loan Program	Advantages	Disadvantages
Home Equity Fixed Loan	Fixed payments Interest may be tax deductible Get cash out for any purpose	Higher interest rates compared to first mortgage Harder to refinance your first mortgage Interest is paid on the entire loan amount, compared to an equity line of credit

In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:

Purchase your home with no down payment using Private Mortgage Insurance (PMI) or Lender-paid Mortgage Insurance (MI).
Piggyback loans: 80-10-10 or 80-15-5. Avoid PMI payments by using Lender-paid MI.
Debt consolidation programs.
Home Improvement loans.
You may qualify even if you've been turned down before!