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Welcome to California Mortgage - Your source for mortgage information in California State. Here you'll find information on mortgage brokers, how to obtain a loan, and where to find the best broker for your needs in California.

Click here if you're currently looking for a California Mortgage Broker for a comprehensive listing of the states best home loan providers.

Different Types of Mortgages
Not sure what home loan options are available to you? Read the differences between the three most common types of mortgages, the fixed rate mortgage, the adjustable rate mortgage and balloon mortgages.

Traditional vs. Pre-Approved Mortgages
While most home buyers use the more traditional method of trying to obtain a mortgage after drafting an offer for a home, there is a better alternative available to most people - the pre-approved mortgage.

Looking at Your Credit Rating
Your credit rating is the main consideration to lenders when trying to obtain a home loan; your credit, capacity, collateral, and character. Click here for information on what these credit terms really mean.

Finding Mortgage Lenders in California
Click here for a comprehensive directory of different mortgage lenders in the California area.

Today's Featured Real Estate Article:

Mortgage Prepayment Penalties - Just Say No

 by: Jakob Jelling

One of the most common terms found in a new home loan is a prepayment penalty. This type of penalty says that if the borrower pays off the loan early, commonly during the first five years of the loan, then the borrower will be responsible for paying an additional amount of money, typically about six months interest on 80% of the mortgage balance. Sub-prime market loans will typically carry prepayment penalties more than standard mortgage loans.

You may plan on keeping the house for the entire duration of the prepayment penalty, and be tempted not to worry about it much. But sometimes life circumstances change, so it's wise to avoid any type of prepayment penalty if you can. A typical prepayment penalty might equal five months worth of monthly loan payments, so it's worth checking on. Of course, you should always ask (before you sign) if a new loan has a prepayment penalty. In fact, ask the lending officer to point out to you in the document where a prepayment penalty is discussed.

Most items in a loan are subject to negotiation. If you haven't signed loan papers yet, and you find that your loan has a prepayment penalty, you might offer to pay an additional closing point or so to see if it can be removed. The key at this stage is that if you agree to the prepayment penalty, you should try to find ways to reduce either the amount, the term, or both as much as possible.

If you already have a loan, you are bound by the terms of the document, unless you can negotiate them. There are perfectly legitimate reasons why you may want to pay off a note early - most often, due either to refinancing or selling the house. You may be able to contact your lender to see if they will waive the prepayment penalty if they are able to provide refinancing. If interest rates have dropped a lot, and you can't get out of the prepayment penalty, it may be worth rolling that amount into a new loan. And of course, try to get the new loan without a prepayment penalty.

About The Author Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.