Understanding Proposition 19A component of voter-approved Proposition 19 has gone into effect Thursday, April 1, 2021, that expands benefits for seniors, people with disabilities, and victims of
Nov 1 2018 38376 2
Dated: November 1 2018
What’s The Best Type of Mortgage Loan for You
Shopping for the right loan when making a real estate purchase can be confusing. Most home buyers want to avoid paying Private Mortgage Insurance (PMI) by securing a conventional loan which is putting down 20% of the purchase price. With many new loan types available today, a home buyer can avoid the standard 20% deposit and secure an 80-10-10 loan where a second trust deed loan in the amount of 10% of the purchase price is attained. When buying a $500,000 home, instead of coming up with $100,000, you can put down $50,000, secure a 10% second trust deed for $50,000 (usually at a slightly higher interest rate) and avoid the additional cost of PMI. The nice feature about this is that you have an 80% first mortgage and can pay-off the second loan when income or bonuses allow. The small cost of additional interest rate is far less than the appreciation of one’s home value in a strong housing market.
Questions you should ask your lender are:
What kinds of loans do you have available?
What are the rates for each loan?
Based on our financial situation, can we qualify for any or all of the various loans?
Is there a pre-payment penalty for early refinance?
Can we pay our real estate taxes outside of our loan payments?
Advantages of working with an independent mortgage broker like TLC Home Loans are:
Speed and Service-2 day Initial Approval
Close in 21 days or less
Competitive Rates and Loan Tracking
Loan Types: Conventional, FHA, VA and Jumbo
3% down on Fannie Mae Home Ready
3% down on Freddie Mac Home Possible Advantage
For more information or questions, call Jack Lees at 818 262-0924