Explore mortgage types and mortgage loan options available with Sonoma County Mortgages.
30-Year Fixed Mortgage
Steady monthly payments over a 30 year term.
We offer fixed rate mortgages for purchasing and refinancing primary residences, second homes and investment properties. Fixed-rate mortgages contain fixed payments over the life of the loan. Chose from 30 year, or 15 year loan programs. These loans amortized so at the end of the loan term, your loan is paid off in full.
Fixed Rates Mortgage Benefits:
- Do plan to stay in your home or keep your mortgage loan for a long-term?
- Do you prefer knowing what your mortgage payment will be over the full term of the loan?
Fixed-rate mortgages offer the best the best of both worlds by allowing you to make any payment beyond your principal and interest payment in any given month without any prepayment penalties. This allows you to pay off your loan faster and save tremendous interest expense. All available loan programs on the market, offer fixed rates with various terms.
Fixed Rate Mortgage Highlights:
- Choose from 30-, 25-, 20-, 15-, and 10-year loan terms available with fixed interest rates
- Purchase with as little as 3.5 or 5% down
- Refinances available with no loan to value restrictions
How Fixed Rate Mortgages Work
- Monthly payment based on principle and interest and amortized over the term of the loan
- Payment will not change throughout the life of the loan
- Your actual mortgage payment will be based on your ability to qualify for financing and rates when you apply for the loan
- Pay off your mortgage loan anytime you want without penalties.
No matter what type of fixed rate mortgage you are looking for, you can find home loan programs for just about every type of situation. Considering the length of time in the property? How about shortening your principal balance payoff or reducing your house payment? These are some factors to consider when selecting a new home loan program. Find fixed-rate mortgages at Sonoma County Mortages today!
This mortgage loan allows for 3.5% down payment.
Many of the mortgages being originated in Sonoma County are FHA loans. FHA loans are insured by the Federal Housing Administration under Housing and Urban Development (HUD). The FHA does not make these loans, the lender does. The FHA insures the lender against default. FHA loans are quite popular due to expanded loan qualifying standards. These loans offer nontraditional credit qualifying unlike conventional mortgages. The FHA insures the loan being made against a primary residence refinance or purchase.
FHA Loan Benefits:
- Are you buying your first home and don’t have a big down payment?
- Do you presently have an FHA loan with a high interest rate?
- Maybe you’re considering buying another primary residence and want to stay little more liquid?
FHA Loans offer they make sense mortgage loan scenario. FHA loans are a helpful loan program for first-time home buyers as well as move the buyers looking to put his little down as possible on the purchase of a primary residence.
FHA loans are also another terrific opportunity for refinancing purposes. Doing debt consolidation? Cashing out on your home equity? How about a low appraisal situation? In many cases an FHA loan can help a current homeowner take advantage of today’s low fixed mortgage rates while the same time saving thousands of dollars in interest.
FHA Loan Highlights:
- Purchase a home with as little as 3.5% down
- Refinance up to 98% of the value of your home
- Refinance a current FHA loan out an appraisal
- Refinance cash out up to 85% of the value of your home
- Less than perfect credit scenarios permitted
- Previous short sale ok (certain terms apply
- Previous bankruptcy ok (certain terms apply)
- Previous foreclosure ok (certain terms apply)
- Co-signors are permitted
- FHA Loans are assumable
- Seller can contribute up to 6% of the purchase price for home buyer’s closing costs
How FHA Loans Work
- Chose from 30 or 15 year fixed rates
- FHA Loans contain two forms of mortgage insurance an upfront premium and the monthly premium
- Principle and interest payment will not change over the length of loan
- Mortgage insurance can be removed after 60 months and 20% equity
- Mortgage payment will actually drop when mortgage insurance is removed
- No prepayment penalties
FHA Loans are an excellent choice of financing for loan down payment scenarios, less than perfect credit situations as well as unique scenarios for purchasing or refinancing.
VA (Veterans') Loan
No down payment required. Special terms available to veterans and active duty military.
VA Loans are a flexible loan program guaranteed by the US Department of Veterans Affairs to help military veterans, members of the military and/or surviving spouses of veterans’ purchase homes with no down payment. Unlike, other government loans, VA loans are guaranteed, not insured thereby making the VA Loan one of the lowest cost mortgages available in the market today.
VA Loans Highlights:
- No Down payment required
- No monthly mortgage insurance payment
- Increased purchasing power
- Seller can pay closing costs up to 6% of the purchase price
- VA Loans are guaranteed by the US Department of Veterans Affairs
- No Prepayment Penalties
- Less than perfect credit ok
- 30-, 25-,20-,15- and 10- year loan terms available
How VA Loans Work
- Credit score as low as 640
- No reserves are required
- Military veterans include Army, Navy, Air Force, Marines, and Coast Guard-including surviving spouses of an eligible service member who died as a result of military service and/or connected injuries is also eligible
- 2.15% funding fee can be financed into the loan amount or paid upfront
- DD Form 214 needed from Department of Veterans Affairs to obtain certificate of release or discharge from active duty
- Previous Bankruptcy eligible in two years
- Previous Foreclosure eligible in three years
VA Loan Requirements:
- Veteran may not pay for pest inspection fee
- Property must clear a pest report
- Veteran can pay for a home inspection report
If you are military veteran thinking about buying a house in Sonoma County, consider a VA Loan. Compared to to other mortgage loan programs available in the market, the VA Loan is truly a stand alone program helping today’s military veterans.
Adjustable Rate Mortgage
Get lower interest rates and lower payments for an introductory period.
If you are a homebuyer who would like more space for change in your mortgage, an Adjustable-Rate mortgage (ARM) might be the right choice for you. If you are planning to change homes in a few years or you believe that interest rates will be lower in the years after you purchase your loan, then you might benefit from an ARM. An ARM is a variable-rate mortgage. This mean that the interest rate changes according to the market. Unlike a fixed-rate mortgage, ARM rates adjust to the market after a set period of time agreed upon by you and your lender.
About Adjustable-Rate Mortgages
A mortgage rate is the interest rate you pay on your mortgage loan. Mortgage rates change daily and are based on fluctuations in the market. An ARM has an interest rate that can periodically adjust based on the terms of the loan. The two numbers commonly seen with ARM loans, like a 5/1 ARM, signifies both the number of years your rate will remain the same and how often it will adjust after the introductory period.
In the 5/1 example, the interest rate that you started with will stay the same for five years. Then, once that time period is over, the rate will adjust once a year to a new rate. Since the initial interest rates and payments are often lower than Fixed-Rate mortgages, many borrowers choose an ARM option as they offer savings up front.
When the fixed period is over and your rate adjusts, interest rate changes are capped.
Adjustable-Rate Mortgage Benefits
ARMs have many benefits.
- Upfront savings: With the lower rate and payment in the initial period, you’re free to reach your financial goals with the money you would be using on a fixed-rate loan
- Initial fixed period: Enjoy the fixed, lower rate for the initial period
- Interest Caps: You won’t be taken by surprise because there are limits on the adjustment. Adjustable-Rate mortgages typically have rate caps built into them limiting how high the rate can be. A periodic rate cap will limit how drastically the interest range can increase from one year to the next. Lifetime rate caps similarly limit how much the interest rate can go up during the life of the loan.
ARMs may be particularly beneficial for borrowers in certain circumstances.
- Homeowners who move frequently
- Workers expecting to earn more income in the next few years
- Purchasers who renovate and resell properties
- Borrowers who plan to refinance before the loan adjusts
- Family planners hoping to upscale to a larger house in the near future
Interested in learning more about an adjustable-rate mortgage? Get in touch with the Sonoma County Mortgages team today.
Flexible credit standards and no down payment.
USDA Loans are backed by the US Department of Agriculture. The US Department of Agriculture similar to the FHA, insures lenders against default risk by offering these home loan solutions. The US Department of Agriculture in order to promote homeownership in less industrialized areas, offers a flexible loan program called the 502 rural loan guarantee housing loan program. This program allows you to purchase a primary residence with certain income and dependent caps per the county and/or the city in which you are purchasing a home in. The program allows you to put zero money down on the purchase of a primary residence so long as you meet the income and dependent requirements along with purchasing in a USDA approved eligible area.
USDA Loan Benefits:
- Is pursuing homeownership a long-term goal of yours, but you lack funds for a down payment?
- Is your income presently less than $110,000 and you lived in Sonoma County?
- Think lower credit scores are preventing you from purchasing a house because of a less than perfect credit scenario?
The USDA Loan Program allows you to purchase a house without any money down. The program is truly 100% financing. If you have a demonstrated ability to pay your current housing bill along with other monthly credit obligations, you could be eligible for the USDA rural housing program. Think about pursuing homeownership in a less industrialized area? Then the USDA rural home loan housing program is for you. Please note this program is only eligible in the USDA approved areas. Learn more about USDA loans by checking out these important links.
USDA Loan Highlights:
- Purchase a primary residence with no down payment
- Less than perfect credit scenarios usually acceptable
- Previous short sale ok (certain terms apply)
- Previous foreclosure ok (certain terms apply)
- Previous bankruptcy ok (certain terms apply)
- Seller can pay up to 6% of home buyer’s closing costs
- Loan is assumable
How USDA Loans Work
- Chose an affordable 30 year fixed rate mortgage term
- Financed upfront guarantee fee and small monthly mortgage insurance premium
- Monthly principal and interest is amortized over the term of 30 years
- Fixed rate payment cannot change
- No prepayment penalties
With today’s rates, the USDA Home Loans make an excellent choice for people looking to purchase real estate with as little money down or no money down as possible.
Get financing for the home you really want.
Jumbo loans, also known as nonconforming loans, are loans in which the sizes are too large to be considered deliverable directly to Fannie Mae and Freddie Mac. Each year, the Federal housing finance agency which controls Fannie Mae and Freddie Mac adjusts the conforming loan limit size per state on a county by county basis in the United States. These county loan limits, are also known as the conforming loan limits which are in essence the biggest loan allowed in that particular county that will be considered deliverable to Fannie Mae and Freddie Mac.
Characteristics of Jumbo Loans
- Any dollar amount over the maximum conforming high balance loan limit in any ‘said’ county
- Jumbo loans in Sonoma County, California, are any dollar amount over $520,950 meaning a loan amount $521,000 through upwards of $2 million is considered to be Jumbo
- Consumer must have a debt to income ratio of 43% (total proposed housing payment + any consumer liabilities and other mortgages and other properties divided into gross income= debt to income ratio/DTI)
- Emerging pool of investors in the secondary market creating extremely low rates for big mortgage loans
Jumbo Loan Limits
- This varies per investor or rather per mortgage lender, for examples Sonoma County maximum jumbo loan limit is $2 million.
- Up to 80% financing is also available-20% equity is what it will take to purchase or refinance a home with a jumbo money
20-Year Fixed Rate Mortgage
Pay off your fixed rate loan over 20 years.
If you are a homebuyer and are frustrated by the thought of waiting 30 years to pay off your mortgage, or are looking for a potentially lower interest rate, a 20-year Fixed-Rate loan might be the right choice for you. A 20-year Fixed-Rate mortgage is a type of home loan that will take 20 years to pay back and has a fixed interest rate and monthly payments. Some homebuyers prefer a 20-year Fixed mortgage because it will take them half as long to pay it back than the most common alternative, the 30-Year Fixed-Rate mortgage.
A 20-year loan and the 30-year loan have similarities in terms of lender requirements and eligibility. Both options are available for Conventional loans, refinancing, and government-backed loans like FHA and VA.
20-year Fixed-Rate Mortgage Overview
A mortgage rate is the interest rate you pay on your mortgage loan. Mortgage rates change daily and are based on fluctuations in the market. A 20-year Fixed-Rate mortgage is a loan featuring an interest rate that stays the same over the life of the loan. This is different from an Adjustable-Rate mortgage (ARM), which has an interest rate that can periodically adjust based on the terms of the loan.
A 20-year Fixed loan allows a borrower to make stable payments on their principal (the original borrowed amount) over a 20-year term. They are often used by borrowers seeking to buy a house or refinance a home loan. This is because they offer the stability of an unchanged monthly payment, regardless of changes in the market.
With a 20-year Fixed-Rate loan, your mortgage payment will be the same every month. This fixed payment does not include other payments like property taxes, homeowners’ insurance, or homeowner association fees. Having a fixed-rate mortgage gives you more stability in your budget so you can plan your finances accordingly. You also don’t have to worry about your payment going up if the housing market changes.
15-year Fixed Rate Mortgage
Lets you pay off your home loan faster.
If you are a homebuyer and are frustrated by the thought of waiting 30 years to pay off your mortgage, or are looking for a potentially lower interest rate, a 15-year Fixed-Rate loan might be the right choice for you. A 15-year Fixed-Rate mortgage is a type of home loan that will take 15 years to pay back and has a fixed interest rate and monthly payments. Some homebuyers prefer a 15-year Fixed mortgage because it will take them half as long to pay it back than the most common alternative, the 30-Year Fixed-Rate mortgage.
A 15-year loan and the 30-year loan have similarities in terms of lender requirements and eligibility. Both options are available for Conventional loans, refinancing, and government-backed loans like FHA and VA.
15-year Fixed-Rate Mortgage Overview
A mortgage rate is the interest rate you pay on your mortgage loan. Mortgage rates change daily and are based on fluctuations in the market. A 15-year Fixed-Rate mortgage is a loan featuring an interest rate that stays the same over the life of the loan. This is different from an Adjustable-Rate mortgage (ARM), which has an interest rate that can periodically adjust based on the terms of the loan.
A 15-year Fixed loan allows a borrower to make stable payments on their principal (the original borrowed amount) over a 15-year term. They are often used by borrowers seeking to buy a house or refinance a home loan. This is because they offer the stability of an unchanged monthly payment, regardless of changes in the market.
With a 15-year Fixed-Rate loan, your mortgage payment will be the same every month. This fixed payment does not include other payments like property taxes, homeowners’ insurance, or homeowner association fees. Having a fixed-rate mortgage gives you more stability in your budget so you can plan your finances accordingly. You also don’t have to worry about your payment going up if the housing market changes.
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