Who could resist moving to California with its great weather, beautiful landscapes, and many cultural offerings. Not surprisingly, it is the most populated state in America. At the same time, one of my other places to reside at is Arlington Heights in Illinois. Though these two places are located far apart, there are similarities between them. Many of the homes in the state of California and in the city of Arlington Heights are the most coveted, though not necessarily the most expensive. Unless you are extremely wealthy, you will undoubtedly require a mortgage in order to buy a home. Be prepared to hear a lot of strange jargon when looking for a mortgage. Here is a 3 step guide to buying a home in California, Illinois or anywhere else, along with some terms that will help you along the way.

1) In a surging home market, it is not simple to select the kind of house and size that you can afford. The first thing you need to do is find out how much of a mortgage you can afford. This will be a determining factor when you get approved. There are many mortgage calculators on the Internet that you can use to find out how much you can handle.

2) Your next aim should be to find the best mortgage that meets your specific needs. Right now, loans and mortgage companies will compete for your business, so make a thorough study of the available mortgages and select the ones that will suit you best.

3) Once you have done that, you need to rate shop for mortgages. California and Illinois offer a wide variety of mortgage directories on the Internet where you will gain access to really low rates published from hundreds of mortgage brokers and companies that are updated every day. The moment you find a suitable rate, get in touch with the company.

Useful Terms

Fixed Rate: This means your interest rate will not change for the length of the loan. Given today's economic volatility, it might be a good decision to avail of a fixed rate mortgage or home loan. Fixed rates protect you from rate increases, but if interest rates fall you will be stuck.

Term: This is the length or life of your loan. Thirty years is the industry standard, but many 15 and 20 year terms are available. The shorter the term, the more your monthly payments will be.

Rate Reduction: This will happen if you go for a shorter-term loan. A small rate and a short term will guarantee that you pay much less for your loan than if you borrowed just as much over a longer period.

ARM: An adjustable rate mortgage. Your interest rate will flux with the economy and will be lower than a fixed rate. It may also entitle you to larger loan amounts or have lower payments. You will generally see a rate cap in your terminology here as well. This means your interest rate cannot exceed a certain amount, and you are safe from extreme market changes.
With the flux of the market place, buying a home is a tough job, and you should not neglect even a single aspect. Learning about these terms and concepts will most certainly help you in deciding on the mortgage deal that you should choose.


Ajeet Khurana writes about a plethora of topics. He recommends: California Mortgage Loan, California Mortgage Lenders and Homes for sale in Arlington Heights.