California home mortgages cover more costs than just the home and real estate. After you determine the amount of down payment you can afford, the amount left will be paid to a lender in monthly payments. The higher the down payment, the lower your monthly premium will be. Many are unable to put more than three or five percent down toward the purchase. This leaves a large sum to accrue finance charges.

The mortgage payment consists of the principal, interest, taxes, and insurance. The principal is the total amount of money you are financing to buy your home. The interest is the money charged by the lender to provide a loan for you.

Elements of California Home Mortgages
Property taxes are added to your monthly mortgage payment. This amount is held in escrow until it is time to pay the taxes. The amount included for insurance will vary according to your location. You may require more than one type of insurance to qualify for a loan. You must have hazard insurance and possibly flood insurance. If your down payment was less than 20 percent of the value of the home, you must have a private mortgage insurance.

In addition to these costs, there are closing costs to consider. At Park Place Funding, our expert loan officers can find the best lending institutions for you. Our goal is to help you plan your financial future, not just to buy a home. Give us a call at 949-540-2300, or email us through our contact link. We can get you the best of California home mortgages.