Mortgage loan types in California
Three general types of mortgage products are offered in California. The interest rate and amount due month remain the same with fixed-rate mortgages (FRMs). Most borrowers choose FRMs that mature in 30 years. But other maturity dates are available including 10 and 15 years to borrowers that qualify. The primary difference with adjustable-rate mortgages is that interest rates change, and the change will affect the monthly payment. Payments typically are low for the first year or so, but usually increase after that. Second mortgages can have either a fixed or adjustable rate and are available as a home equity line of credit (HELOC) or home equity loan. The rates you’re offered on second mortgages very often are higher than rates on refinance mortgages.
