Home loans are secured against a borrower’s property. There are various types of interest charged by lenders, such as variable rate of interest and fixed rate of interest. A borrower has to repay both, loan amount and interest to repay home loans. Variable rate of interest do not have a fixed monthly charge but in fixed rate of interest, monthly charges are fixed. Home loans may be short term and long term. Borrowers may decide as to which type of loan is suitable for them.
Various types of home loans are available in California, such as home purchase, home refinance loans, home equity loans, second mortgage loans, debt consolidation loans and bad credit loans. All these loans have different time periods and different rate of interest. Higher interest rates are offered in certain areas of California that are prone to earthquake.
Borrowers may borrow money for purchasing a house either by visiting banks or contacting loan brokers or through a website. There are lots of websites available on Internet where borrowers may apply online. Borrowers may be able to compare rates offered by different lenders if they apply online. They may be in a position to calculate monthly installments and time needed to repay the loan in advance by availing services of such websites.
Several organizations offer loans in California to suit different situations. Borrowers with bad credit score may also apply, as there are many specialized bad credit lenders. Stiff competition exists between brokers. Many brokers offer 100% loan to attract customers. In such a case, borrowers need not put in any amount at the time of securing such a loan. This type of loan is known as “no money down mortgage loan.” Many lenders may require private mortgage insurance to reduce the risk in case of such loans. Lenders may not ask for any documents from borrowers with good credit score.
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