Mortgage Rates Southern California
Have you always been looking to own your own house? Justin Purpero will not just help you get a loan with the lowest mortgage rates in Southern California but will help you manage your finances. The company have funded over 1 billion dollars of mortgage loans and served more than 2,000 families.
What is a mortgage loan?
A mortgage is a loan from a bank or any lending organization to purchase real estate. It helps borrowers get the money needed without paying the entire price in whole. The borrower repays the loan with interest over the agreed number of years.
The interest will depend on the principal amount borrowed and the length of time it will take the borrower to pay the loan. Lower interest rate applies if you'll pay the loan faster. The current average mortgage rates in Southern California is 3.66 for a 30-year fixed-rate, which refers to the interest rate for the loan for 30 years of payment.
Process of getting mortgage loans
Mortgage loans come in many forms such as fixed-rate mortgage and an adjustable-rate mortgage. In a fixed-rate mortgage, the principal amount and the interest rate that the borrower pay monthly do not change for the agreed number of years. Usually, fixed-rate mortgages have a 15- or 30-year term.
The adjustable-rate mortgage rate has a fixed interest rate initially and changes depending on the market interest rates. The initial interest rate is usually below the interest rate in the market. The change in the market makes the interest unpredictable as it goes either higher or lower than the initial rate.
Another form of mortgage loan is the interest-only mortgage where the borrower will pay the principal amount and the interest in a lump sum at a specified date. The borrower will not have to worry about the monthly payment. It is usually an option for borrowers who expect higher income in the future years.
What happens when you don't pay mortgage loans?
Borrowers and the bank or the organization involved enters a contract agreement during the process. This indicates the payment of the full amount borrowed with the interest rate at the end of a specified due date. Borrowers can negotiate with the lending organization for new terms or refinancing. Once the borrower stops paying, the borrower may face penalties or may even lose the purchased real estate.
The contract agreement also specifies the penalties in case the borrower is not able to pay on time. Usually, late payment fees apply between 16 to 30 days after the due date. The borrower will receive a notification through a letter, email, or phone call regarding the late payment. If there will be no response for the borrower, the lender may initiate the foreclosure process which involves filing a lawsuit against the borrower and may result in losing the property.
If you are planning to apply for a mortgage loan with the lowest mortgage rates in Southern California, contact Justin Purpero. Schedule a consultation today. Call 714-504-9730.