We have the most competitive loan programs for all of Los Angeles.  Whether your are located in East LA, Downtown, Hollywood, Miracle Mile, Adams/USC, Hancock Park or Culver City we have financing that will meet your needs.

A fixed rate loan for Los Angeles Countty remains the most popular option.  The program is fixed for a specific period of time and amortizes in full during this period.  Most people throughout Los Angeles chose a 30 year fixed loan because they want to know what their payments will be each month and their goal is to pay the loan off and have a home free and clear.  However, a 15 year fixed rate loan becomes a suitable option for Los Angeles County homeowners who want to pay the loan off quicker.

In some cases an Adjustable Rate Loan or (ARM: Adjustable Rate Mortgage) is a better option. When purchasing a home in Hancock Park or Silver Lake the payments might be too high for a standard fixed rate loan and the ARM program allows you to qualify for more home.  With an Adjustable Rate Loan program the interset rate is fixed for only a short period of time and then it will adjust according to an index and a margin.  The index will be determined by the lender and the margin is defined in your initial loan terms.

Some of the most common indexes include:
Treasury Bill Index (6 month, 1 year)
Libor Index (1 month, 6 month, 12 month)
11th district cost of funds index
MTA index
Prime Rate

For example, the index might be the 6 month treasury bill index. This index provides a history of what treasury bill rates are selling for on wall street.  The bank does not control this index, but rather this index changes based upon economic conditions.  The index assumes what the cost of money is for the bank.  Thus the bank will add a margin to this index.  The margin is set by the bank upfront and this margin or profit is what the bank relies upon throughout the loan.  

The ARM program might be fixed for as long as 10 years or as short as 1 month. There are ARM programs that are 1 month, 3 month, 6 month, 1 year, 5 year, 7 year and 10 year. Throughout Los Angeles County and in most areas of Long Beach the most popular ARM program is the 5/1 ARM. This program means the rate is initially fixed for 5 years and then will adjust according to the index plus margin thereafter.

ARM programs will have adjustment caps. This helps protect the Los Angeles Homeowner.  The Cap will limit the maximine rate the the loan can adjust to for each rate period as well as the lifetime rate of the loan.  A common adjustment cap on ARMS throughout Los Angeles is a 5/2/5 cap.  This means that the loan cannot adjust more than 5% above the initial starting rate in it's lifetime.  The loan will adjust adjust to a max of 2% each year and on the first adjustment the loan could adjust to 5% or the lifetime cap.  As an example if the rate started at 4% the lifetime cap would be 9%.  After 5 years on a 5/1 ARM for your home in East LA your rate could jump to 9% on the 61st month, however thereafter the limit would be 2% each year with a max of 9%.  It doesn't mean that your home in Ojai will adjust to 9% on the 61st month but that it could.  It will only adjust to whatever the interest rate and margin are at the time.

Sometimes these 5/1 ARMS are called Hybrid loans because they combine characteristics of fixed rate loans with an adjustable rate loan.

Another loan program, not quite as popular to Los Angeles County Residences is a Balloon Program. This means the rate is fixed for a certain period of time and then the loan is due and payable.  A 30/15 is a common loan throughout the Los Anglees which means the loan is amortized over a 30 year period but due in 15 years.  This loan is more common with 2nd Trust Deeds.

A less popular loan is a Pledge Asset Loan which offers Los Angeles County homeowners the ability to take funds in a stock account and pledge them as collatoral. The result can mean some fantastic rates on their home.  

Many elderly homeowers in Los Angeles benefit from a Reverse Mortgage. This program allows a homeowner to utilize the equity in their home and take money out, thereby affording their current living costs.  This is ideal for seniors in Los Angeles County who are short on income but have equity in their home.

Our loan programs are customized to help Los Angeles County residences. Whether it's a fixed, adjustable, or another type of loan program we can provide information to help you decide. 

Please take advantage of the additional information we can provide to you by clicking on one of the links above.  Further detail information is available at www.targetrate.com

FOR MORE INFORMATION ABOUT LOAN PROGRAMS 

ALL ABOUT FHA LOANS
ALL ABOUT ARM LOANS
ALL ABOUT FIXED RATE LOANS
WHAT IS A JUMBO LOAN?
WHAT IS A STATED INCOME LOAN?

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