Mortagage rates continue to stay low. If you are a first time buyer in Redding, Anderson, Shasta Lake or anywhere in Shasta County now is the time to get your first home loan.
We are here to help you with a home loan or refinance your current home loan. On our site you will find the tools you need to help you purchase a home or save money by refinancing your current home loan. Our experienced and friendly team is dedicated to making choosing the right loan for you easy and rewarding. Here are some of types of loans we offer, Conventional fixed rate loans and Adjustable rate loans (ARM), FHA (Federal Housing Administration) Mortgage Loans, Veteran Affairs (VA) loans, Jumbo Mortgage loans, Reverse Mortgage Senior loans and 203K Rehab Mortgage Loans.
Fixed Rate Mortgage
You can choose from 10-year to 50-year fixed-rate mortgages, all of which are completely amortized. This is the loan of choice in nearly 70 percent of home purchase transactions. During the early years of the loan, much of the monthly payment goes toward interest. Toward the end of the loan period, more is applied toward principal. A 30-year loan is most common. Borrowers can shorten the loan periods by paying more principal with each payment. Paying more each month and allocating the extra to principle can cut the life of the loan down and save the borrower many thousands of dollars, depending on how quickly the principle is paid down.
(ARMs) come in many configurations. The interest rate is tied to an index, such as 1-year Treasury bonds or the Cost of Funds Index (COFI) which reflects the cost of borrowing on the credit markets. The loan's interest rate fluctuates with the movements of its index. It can move up or down monthly, semi-annually, annually or remain fixed for a period of time before it adjusts, according to the terms spelled out in the loan.
A limit on how far the rate can fluctuate at any one time is achieved through a rate adjustment cap. It is not as easy to pay off an adjustable-rate loan early as it is with a fixed rate mortgage. Some agreements may require the buyer to pay special fees or penalties if the ARM is paid off early.
FHA (Federal Housing Administration) Mortgage Loan
FHA loans are insured by the government through mortgage insurance that is funded into the loan. FHA insured loans are a type of federal assistance. First-time home buyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores do not matter.
This type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The requirements for receiving a VA loan vary. A main benefit is that the borrower does not need a down payment. The loan is guaranteed by the Department of Veteran Affairs, but funded by a conventional lender.
Interest-Only Mortgage Types
An "interest-only mortgage" allows you to make an interest-only payment for a certain period of time. After that time, the borrower begins making payments on the principle. So if a borrower had a thirty-year mortgage loan and the first ten years were interest only, at the end of the first ten years the principal balance would be amortized for the remaining period of twenty years. However, some junior mortgages are indeed interest only and require a balloon payment, consisting of the original loan balance at maturity.
Equity Mortgage Loan Types
Equity loans are second in position and junior to the existing first mortgage. Borrowers take out equity loans to receive cash. The loans can be adjustable, fixed or a line of credit from which the borrower can draw funds as needed.
Other types of mortgage loans include Option ARMs, Hybrid ARMs, Balloon Mortgages, Biweekly Mortgages, Home Equity Lines of Credit (HELOC).