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Altadena, CA New Home Financing in California

Somerset Mortgage Lenders can find Altadena, CA residents the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help Altadena, CA residents match your needs with a loan you’ll love for as long as you own your home. Somerset Mortgage Lenders can find Altadena, CA residents the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help you match your needs with a loan you’ll love for as long as you own your home.

Fixed Rate Loans

Several categories of conventional loans exist, the most common and familiar being the fixed rate mortgage. In the cases of fixed rate mortgages, the borrower will lock in an interest rate, and pay down both the principal and interest on the loan at that interest rate every month until the mortgage is paid off. The most typical term of a fixed rate loan is 30 years, though fixed rate mortgages can also be obtained for much shorter terms, the primary difference being in the size of the monthly mortgage payment.

Conforming Loans

Other conventional loans are known as conforming loans. In these cases, an arrangement is made between borrower and lender that comply with the stipulations of two federally run mortgage trading companies (or Government Sponsored Entities - GSEs) Fannie Mae (FNME) and or Freddie Mac (FHLMC).

Fannie Mae and Freddie Mac do not directly approve or deny loans. They buy and sell home mortgages, working with lenders to make home ownership easier for people to attain. Lenders like to sign up borrowers with conforming loan, because they can then sell these loans to Fannie May or Freddie Mac in order to more quickly receive the funds coming to them, and use those funds to make other investments. Fannie Mae and Freddie Mac, in turn, then repackage these loans to sell to investors as securities.

The current guidelines for a conventional Fannie Mae loan set a maximum purchase price for a single-family home at slightly above $415,000 (though residents of Alaska, Hawaii, or Guam may be able to qualify for an even larger loan).

The interest rate as well as the short- and long-term pricing on a conforming loan is determined primarily by the type of loan applied for. Also taken into consideration will be the amount of funds you already have to contribute to closing costs, your credit rating, credit score, and credit history, your employment history, and the type and location of the home in question.

Jumbo Loans

Other forms of conventional loans are nonconforming loan instruments that do not meet Fannie Mae or Freddie Mac loan qualifications, such as jumbo loans, or loans so large they fall outside the Fannie Mae and Freddie Mac loan limits (or purchase limits). Jumbo loans are provided by private investors and as such ordinarily come with much higher interest rates than conforming loans.

FHA Loans

Government entities from a local to a federal level and private entities alike have worked to develop loan programs that make home ownership a reality for many people considered under-qualified for traditional mortgages. These include loans for first-time homebuyers and people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA).

HUD and the FHA do not make loans directly, rather they insure loans, meaning that the lender still gets paid back even if you default on the home loan. Often, FHA insured loans are available with down payments lower than 3% of the total loan amount. There is a limit to how high of a loan the FHA will insure, but the limit is at least high enough to allow people in qualifying circumstances to buy reasonably priced homes pretty much anywhere in the country.

Subprime Loans

A different type of loan was also created to assist people with poor credit in buying a home. These are called Subprime Loans. A subprime loan may come in various forms depending on the loan amount, loan terms, and loan-to-value ratio. Your risk is still determined by grading your credit, but in the case of a subprime loan it is to determine the type of loan and interest rate offered you rather than whether or not to give you a loan at all.

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Altadena, California News
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THE Pasadena Unified School District has had so many "been down so long, it looks like up to me" moments in recent decades that it would be funny if it weren't so ... well, not funny at all.

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A 28-year-old motorcyclist who died in a head-on collision Tuesday on Angeles Crest Highway north of Altadena was identified as Costa Mesa resident David Church Deane, according to reports published Thursday.

Daisy troops celebrate with a pool party

There was plenty of time for fun and games Thursday at Slauson Community Pool, where the girls from Daisy Girl Scouts Troops 279 and 264 staved off the heat with repeated trips down a two-story water slide.

Family of slain Altadena woman ask for help

The family of an Altadena woman who was found beaten and stabbed in her deliberately burned home three months ago asked for the public's help for information that would solve the case.

Slaying of 91-year-old woman still unsolved

The daughter of a 91-year-old woman whose body was found inside her burned Altadena home three months ago pleaded Friday for the public's help in solving the case.

Altadena Family Seek Leads In Grandma's Death

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Kids in need get boost from Unity Center

At the start of last school year, Terry Valadez spent $1,000 on basic school supplies - pens, pencils and paper, clothing and shoes - for her five children.

Motorcyclist dies in collision with pickup

A motorcyclist was killed Tuesday after colliding with a pickup truck on Angeles Crest Highway, about nine miles above Altadena, officials said.

Memorial set for County firefighters killed in'93 wildfire

A memorial ceremony will be held today for two Los Angeles County firefighters who died on this date 15 years ago while battling a brush fire in the Altadena area.

Calif. lawmakers OK warnings on metallic balloons

State lawmakers have approved a watered-down bill targeting the dangers of metallic balloons.

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City Beats: C of C looking for best shot

We all love it, but please, not another iconic picture of City Hall saying "Pasadena!" for the cover of the 2009 Chamber of Commerce Directory and Community Guide.

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"Every other company said they could not help us. After speaking to about five companies, we really believed that no one could. Then we called Somerset, and your company proved us and those other companies wrong. We can't thank you enough for all your hard work and effort in getting us a low fixed rate. We can now breathe easier..." - L. Braun
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