With more than 25% of the city’s population under the age of 18, Citrus Heights, California is the perfect place to raise kids. According to the 2000 Census, the median income of Citrus Heights residents is $43,000. So it’s fairly easy to afford a new home. But now that you’ve decided to move to Citrus Heights, what’s the first step? What follows is a quick lesson in mortgage, refinance and home equity loans that new and old Citrus Heights residents will find useful.
First you need to decide what kind of loan you want. In today’s world of home mortgages, there are literally hundreds of loan packages available. For the purpose of getting a basic understanding of the process, you only to be familiar with two types of loans: fixed rate and adjustable rate.
Fixed Rate Mortgage
The first is a fixed rate mortgage. The name is fairly self-explanatory. The interest rate on the mortgage will not change throughout the life of the loan. From the beginning of the loan until when the loan comes to term, the monthly house payment will remain the same. No matter what the market does in the coming years, the homebuyer is locked into a fixed rate mortgage. His monthly house payment will remain the same. With a fixed rate mortgage, you are going to need a few items: your tax records for the last two years; your pay stubs or W-2 forms for the same period; and any paperwork showing your other assets. All of these forms will help the lender decide what you can afford.
Adjustable Rate Mortgage
The second type of loan, the adjustable rate mortgage, is also popular. But with this type of loan, the home buyer’s monthly house payment may fluctuate in later years. Usually though, this type of loan is more popular with the buyer who doesn’t plan on staying in the home for the life of the loan. This way, he can pay the lowest possible interest rates in the first few years then sell before the payment goes up.
Pre-approved Loans
So now you’ve decided what kind of loan you want. Now it’s time to get pre-approved. Pre-approval is popular with the buyer and the seller:
OTHER TYPES OF LOANS
Home Equity Loan
There are other types of loans available for you if you happen to already live in Citrus Heights. A home equity loan is a loan that may be appealing to you if you had an unexpected major expense pop up. The lender will loan you money using the existing equity in your home as collateral. You can either get the money in one lump sum or spread it out over a period of time, as you need it.
Mortgage Refinance Loans
Or maybe you simply want to refinance your existing home mortgage so you can lower your monthly house payment? Then a mortgage refinance is a viable option. When you decide on this loan, you’ll have to decide whether you want to cash out the existing equity you’ve built up in the house. You may need this cash at your new closing.
There are still other types of loans available for you to choose from – balloon loans, ARM loans, and VA loans are just a few. But most fall under the ever-encompassing umbrellas of fixed rate and adjustable rate. So after you decide which of these is best for you, you can research even deeper into the myriad of loan possibilities.
Whether you’re looking for a Citrus Heights mortgage, refinance, or home equity loan, we can help. Take a moment to fill out the form below, and a qualified lender will contact you right away.
