A beginner’s guide to home loans
StatePoint Media
Buying a home is one of the largest purchases most people will make in their lives, and taking out a home loan is a common way to finance the purchase. This primer on home loans explains the mortgage basics, including what a mortgage is, typical types of loans, and the concept of shopping for a lender.
What is a mortgage?
A mortgage is a loan used to purchase a home or other real estate. The term mortgage may also be used to indicate the amount of money you borrow, with interest, to purchase your house. The mortgage amount is usually the purchase price of the home minus your down payment.
Before taking out a mortgage, it’s important to understand the upfront and ongoing costs of homeownership,
including closing costs, property taxes, insurance and maintenance. If you fall behind on your mortgage payments and can’t resolve the delinquency, your lender may begin foreclosure proceedings, which could result in losing your home.
Choosing a loan term
Consider the loan term, which is the length of time it will take you to repay your loan. Your loan term will affect your interest rate, monthly payment and the total amount of interest you will pay over the life of the loan.
Long-term mortgages, such as the most common 30-year term, typically have:
• Smaller monthly payments than short-term mortgages, making your mortgage more affordable month by month.
• Higher mortgage rates, meaning n See HOME LOANS, page 4
K
BOUG KEVIN AND MORGAN BOUGHT THEIR FIRST HOUSE!
“While buying our rst home we felt intimidated, until we met Janine. From the moment we met, she made us feel supported and understood. She walked us through each step and explained things to make sure we understood. She celebrated every milestone with us and treated us like family, checking in (even while on vacation), being an advocate for us, and providing guidance. Janine didn’t just treat us like clients, we were a part of her heart and her family!” ~ Kevin and Morgan K.
Getty Images
Do your research before taking out a home loan so you fully understand your financial responsibilities in the years ahead.
Housing affordability improved for all Californians in 2025
California Association of Realtors
Report: Significant gaps remain wide for Black households
SACRAMENTO (April 24) – Housing affordability for all California ethnic groups improved slightly in 2025 as mortgage rates moderated and home prices increased slightly, the California Association of Realtors recently reported.
Nineteen percent of all Californians earned the minimum income necessary to buy a median-priced, detached home in 2025, compared to 18% in 2025. The share of Asian households earning enough to purchase a median-priced home increased to 29%, a one-percentage point gain from the previous year. White (non-Hispanic) household affordability also accelerated one percentage point to 23% in 2025. While affordability among both Black and Hispanic/Latino households increased to 11% in 2025, up from 10%, the share of Black and Hispanic/Latino households who could afford to purchase a medianpriced home in California was small relative to their Asian and White (non-Hispanic)
counterparts, according to CAR’s Housing Affordability Index. The pronounced gap in homeownership affordability among Black and Hispanic/Latino households underscores wage inequities and persistent barriers to credit access. Without significant intervention, these structural disparities could widen if interest rates remain elevated and home prices continue to rise.
The housing affordability gap remained wide in 2025, driven by slight increases in home prices and moderating, but-still elevated mortgage rates. The difference in housing affordability between Black households and the overall population in California widened from a revised 8.3 percentage points in 2024 to 8.7 ppts* in 2025, while the gap for Hispanic/Latinos declined again from a revised 8.2 ppts in 2024 to 7.9 ppts in 2025. While interest rates are projected to decrease further in 2026, the gap in housing affordability between ethnic groups will likely remain wide this year as home prices are expected to edge up in the next 12 months.
According to the Census Bureau’s American Community Survey, the 2024
homeownership rate for all Californians was 55.8%, 64.4% for non-Hispanic Whites, 61.6% for Asians, 45.9% for Hispanic/ Latinos and 36.5% for Black households.
In an effort to address California’s growing housing affordability crisis and racial homeownership divide, CAR continues to partner with nonprofit housing organizations to provide closing cost grants up to $10,000 for eligible firsttime homebuyers from an underserved community. Since its inception in 2022, CAR’s Housing Affordability Fund’s Pathway to Home Closing Cost Assistance grant program has provided closing cost grants totaling $4 million for 413 first-time homebuyer households from an underserved community throughout California. A minimum annual income of $221,200 was needed to qualify for the purchase of an $875,550 statewide median-priced, existing single-family detached home in 2025. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan would be $5,530, assuming a 20% down
See AFFORDABILITY, page 4
THINKING ABOUT BUYING A HOME
✓ Your needs wants, and happiness is always my rst priority
✓ Extensive Market Knowledge & Strong Negotiation Skills
✓ Effective Communication Skills & Proven Track Record
✓ Attention to Detail & Marketing Expertise
✓ Client-Centered Approach & Problem Solving Skills
✓ Commitment and Dedication to helping every step of the way
✓ Will give you Honest feedback about your home & a local resident
✓ Red n agents sell 3x more homes each year than other agents
✓ Listing fees as low as 1%
✓ Someone you can TRUST!
✓ I have a PASSION for Real Estate
All real estate advertising in this newspaper is subject to the federal Fair Housing Act which makes it illegal to advertise “any preference, limitation or discrimination based on race, color, religion, sex, physical handicap, familial status or national origin, or an intention to make any such preferences, limitation or discrimination.” California also extends protection based on age and marital status. The Mountain Democrat makes every effort to comply with these federal and state regulations. We ask your assistance in maintaining an acceptable standard of advertising. While they may seem inconvenient at times, these laws are written to protect you, our readers and advertisers, as well as ourselves. This newspaper will not knowingly accept any advertising for real estate which is in violation of the law. Our readers are hereby informed that all dwellings advertised in this paper are available on an equal opportunity basis. For further information, you can call the Dept. of Fair Employment & Housing at (916) 445-9918 or the State Dept. of Consumer Affairs at (800) 344-9940.Note: Rental ads that contain the phrase “Single Occupancy” refer only to the physical characteristics of the dwelling and are not intended to state a preference of either marital or familial status.
Affordability
Continued from 3
payment and an effective composite interest rate of 6.71%. The 2025 California median income for all households in 2025 totaled $103,312, compared to $134,987 for Asian households and $115,440 for White (nonHispanic) households. The median income for Hispanic/Latino households was $87,886 and $73,102 for Black households — an income gap of 29% of all California households.
At the national level, 56% of Asian households and 43% of White non-Hispanic households could afford a median-priced single-family home in the U.S. in 2025. Meanwhile, only 35% of Hispanic/Latino households and 27% of Black households could afford to buy a median-priced home.
CAR’s Housing Affordability Index measures the percentage of households that can afford to purchase a median-priced, single-family home in California. CAR also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure
Home loans
you’ll pay more in interest over the life of the loan.
Continued from 2
of housing well-being for homebuyers in the state.
Of the major regions where CAR tracks affordability by ethnicity, the affordability gap between Black and the overall population in 2025 was the largest in Contra Costa (-14.7 ppts), Santa Clara (-14.0 ppts), and Fresno (-13.5 ppts). Other counties with doubledigit affordability gaps for Black households were Alameda (-13.4 ppts) and Sacramento (-10.8 ppts). Affordability gaps between Black households and the overall population at the state and national levels were -8.7 ppts and -13.9 ppts, respectively.
For Hispanic/Latino households, the affordability gap was the biggest in Contra Costa (-10.5 ppts), Santa Clara (-10.2 ppts), Alameda (-9.4 ppts), and Solano (-9.4 ppts). Affordability gaps between Hispanic/Latinos and the overall population at the state and national levels were -7.9 ppts and -5.1 ppts, respectively.
At an affordability index of 7%, Santa
Short-term mortgages, which typically come in the form of 10, 15 or 20 years, generally have:
VINTAGE TO MODERN HOME
Furniture,
• Lower interest rates than long-term mortgages, meaning you’ll pay less interest over the life of the loan.
• Higher monthly payments than long-term mortgages.
Deciding on a loan type
There are two basic types of mortgages:
Fixed-rate mortgages lock in one interest rate for the life of the loan. This means your monthly mortgage payment will remain the same for the entire loan term.
Adjustable-rate mortgages have an interest rate that will change over the life of the loan, and rates typically start off lower than those
Clara was the least affordable county for Black households, followed by Los Angeles (8%) and Alameda (9%). Kern (33%), San Bernardino (23%), Riverside (23%) were the most affordable counties for the ethnic group. The least affordable counties in 2025 for Hispanic/Latino homebuyers were Los Angeles County (9%), Orange (10%) and San Diego (11%). The most affordable counties were Kern (33%), Sacramento (29%), and Fresno (28%).
For Asian households, Orange County was the least affordable, with 18% earning the minimum income required to buy a medianprice home. Kern was the most affordable county with 52% of Asian households having the minimum income required to buy a median-priced home.
Orange County was also the least affordable county for White non-Hispanic households, with 15% earning the minimum income required to buy a median-price home. Kern was the most affordable at 38%.
of a fixed-rate mortgage. After an initial hold period, ranging from six months to 10 years, your interest rate will change based on market conditions.
Finding a lender
Once you determine which mortgage best fits your financial situation and goals, it’s time to shop for a lender. Your lender is an important part of your homebuying team, and will help guide you through the rest of the mortgage process. You can obtain estimates from many types of lenders, including loan officers at banks and credit unions, mortgage brokers and non-bank lenders. Different lenders will offer different terms and interest rates and
charge different fees. That’s why it’s important to explore your options. Freddie Mac research shows that getting just one additional rate quote could save homebuyers an average of $1,500 over the life of the loan and getting five more quotes saved an average of about $3,000.
Because mortgage rates change frequently, be sure to compare loans on the same day to accurately judge loan estimates. It’s also best to do your mortgage shopping swiftly, as multiple credit inquiries outside a 45-day period could lower your credit score.
Crunching the numbers
Freddie Mac’s personalized tools and
resources include a loan term calculator for exploring whether a short-term or longterm mortgage may be better for you; a loan type calculator for understanding whether a fixed- or adjustablerate mortgage better meets your needs; and a loan comparison calculator to help you determine the differences between multiple loan estimates. To access these calculators, along with other free resources and information visit myhome.freddiemac.com. A mortgage is a longterm commitment and a legally binding contract. Before borrowing, be sure to understand the ins and outs of how home loans work, and your financial responsibilities in the years ahead.
$1,100,000 MLS# 226038077
$549,000 MLS# 226044001
is unique custom home o ers warmth and creativity and is the perfect location for gatherings.Inside you’ll nd the primary bedroom on the rst oor, a wood paneled formal dining room and a grand brick surround wood burning stove. Upstairs you’ll enjoy a good sized family room with a wet bar and electric cooktop and doors leading to a covered veranda where you can enjoy all seasons. Detached and good sized work shop, a studio, a three car attached garage, lots of space for toys and vehicles behind the home and a peaceful, private outdoor park-like setting. is is a once in a lifetime property.
One lucky buyer will enjoy this single level home with a desirable oorplan featuring ample living space. e big ticket items have been completed. Newer HVAC, newer water heater, newer laminate and carpeted ooring and fresh interior paint. Kitchen opens to the family room with replace, formal dining rooms opens to the living room with views of nature. Primary bedroom is private and o ers a walk-in closet and outdoor access. Enjoy the peaceful country setting, close enough to the city amenities yet tucked away to allow peace and quiet. Side entry two car garage with driveway for parking.
Presenting this meticulously acres with incredible versatile workshop community of Rancho fresh mountain air, light define the living of windows that frame while the formal to an expansive Trex your dream outdoor entertaining, or potential backup generator gatherings. Lovingly beauty of mountain MLS# 226051803
meticulously maintained, never before on the market single-story mountain retreat on 4.55 incredible views, cement lap siding, a lifetime Class A roof, underground utilities & a 1000 SQFT workshop including a spectacular “man cave” with full bath and central heat. Set within the gated Rancho Del Sol, this 2,735 sq. ft. residence offers 3 bedrooms and 2 baths, surrounded by air, peaceful wildlife, and unforgettable sunsets. Inside, tall ceilings and abundant natural living spaces, including a vaulted living room with a fireplace, bar area, and a dramatic wall frame the natural beauty beyond. The spacious kitchen offers a breakfast nook with views, dining room provides an inviting setting for gatherings. The private owner’s suite opens Trex deck and charming patio, overlooking a generous yard with ample space for a pool or outdoor retreat. A rare highlight is a 1,000 SQFT versatile workshop that is ideal for hobbies, potential ADU use. Additional features include RV parking with waste hookup and carport, generator system, a powered 9x11 storage shed, and a park-like area perfect for outdoor games and Lovingly cared for, this property offers a unique opportunity to enjoy space, privacy, and the mountain living.
226051803 Offered at $849,900
Bring your dreams to life with this charming rural horse property,Home was built in 2015! Perfectly equipped for those passionate about cultivating a life connected to the land. Set on 8+ usable acres, the estate features a four-stall tack room, two workshops, and a 50’ x 54’ two-story barn ready for your nishing touches or even ADU possibilities. Whether you’re riding through the private pasture or growing your own farm-to-table lifestyle, this property offers a wonderful country setting with endless room to work, ride, and truly make it your own. Sellers are motivated!
4649 Puerta Del Sol, Camino
Home Source
12602 Residential Homes
el dorado hillS
$525,000 2541 Knollwood Dr 2 (2 0) 1492 0.74 226050478
$549,900 2818 Alhambra Drive 3 (2 1) 1824 0.41 226050711
$575,000 3174 Royal Dr 3 (2 1) 1289 0.25 226045560
$575,000 2435 Sandpiper Way 3 (2 1) 2096 0.25 225149100
$599,000 2720 La Canada Ct 2 (2 0) 1380 0.27 226041533
$600,000 3480 La Canada Dr 2 (2 0) 1633 0.3 226052106
$625,000 3937 Rustic Rd 2 (2 0) 1993 0.3 226021395
$625,000 3980 Rustic Rd 2 (2 0) 1644 0.37 225105626
$635,000 3611 Cambridge Rd 2 (2 0) 1792 0.41 226045247
$638,950 2530 Sandpiper Way 3 (2 1) 2096 0.23 226039386
$639,900 3234 Cambridge Rd 3 (3 0) 2140 0.3 226040826
$649,000 3503 Verano Way 3 (3 0) 3118 0.32 226046234
$649,000 3433 La Canada Dr 2 (2 0) 1784 0.3 226038534
$659,000 3283 Cambridge Rd 3 (2 1) 2259 0.29 226043099
$669,999 3020 Oakwood Rd 2 (2 0) 1858 0.42 226016741
$675,000 2801 Osborne Rd 3 (2 1) 1695 0.37 226035511
$675,000 3817 Los Santos Dr 3 (3 0) 2208 0.28 226029054
$699,000 3068 Twin Oaks Rd 3 (2 1) 2404 0.37 226048320
$700,000 2527 Rosales St 3 (3 0) 2504 0.25 226036257
$719,000 2837 Maryetta Ct 3 (2 1) 2264 0.63 226039559
$725,000 3120 Woodleigh Ln 3 (2 1) 2104 0.14 226038516
$730,299 7967 Stone Ranch Dr 2 (2 0) 2321 0.267 225143486
$749,900 2954 Oakleaf Dr 3 (2 1) 2031 0.38 226046070
$750,000 2894 Clemson Dr 3 (3 0) 2712 0.24 226047766
$750,000 2717 Knollwood Dr 4 (3 1) 2424 0.34 226031893
$769,000 2806 Woodleigh Ln 3 (3 0) 2459 0.23 226049138
$769,999 3218 Cambridge Rd 3 (2 1) 3189 0.31 226012807
$579,000 1050 Pacifico Ln
$595,000 2100 Ranch Bluff Way
$595,000 8961 Cerro Vista Dr 3 (2 1) 1504 0.11 226015191
$599,000 1008 Hanover Ct 2 (2 0) 1104 0.21 226045919
$599,000 3229 Calypso Cir 3 (2 1) 1497 0.11 226032763
$604,112 3017 Pansona St 3 (3 0) 2246 0.13 226039361
$625,000 7714 Briarberry Way 2 (2 0) 1703 0.17 226017866
$649,900 8193 Ryland Dr 2 (2 0) 1429 0.09 226042385
$650,000 601 Evans Ct 3 (2 1) 1712 0.24 226048842
$659,000 7358 Grassy Creek Way 2 (2 0) 2229 0.14 226006441
$665,000 6611 Samba Way 3 (2 1) 1712 0.12 226028355
$669,000 2869 Canterbury Cir 2 (2 0) 1622 0.25 226028002
$679,000 2064 Ranch Bluff Way 2 (2 0) 2010 0.15 226032595
$694,999 4975 Del Mar Dr 3 (2 1) 1504 0.14 225150364
$695,000 7003 De La Vina Dr 3 (3 0) 1784 0.13 226032660
$699,000 8552 Avelin Pl 3 (3 0) 1784 0.11 226045333
$699,000 9025 Fallsmont Dr 2 (2 0) 1932 0.14 226041508
$699,000 8036 Ryland Dr 4 (4 0) 2426 0.07 226035612
$725,950 4977 Del Mar Dr 3 (2 1) 1642 0.14 226001419
$739,900 1010 Autumn Trail Way 7 (2 5) 2329 0.15 226037893
$739,999 4987 Del Mar Dr 3 (2 1) 1784 0.14 226001425
$749,000 8514 Wyndrush Way 3 (2 1) 2329 0.14 226042782
$749,000 1333 Downieville Dr 3 (3 0) 2061 0.21 226017179
$749,000 4820 Monte Mar Dr 2 (2 0) 2229 0.18 226002135
$769,000 3279 Woedee Dr 3 (3 0) 2290 0.27 226016979
$770,000 4023 Harlington Cir 3 (2 1) 2380 0.26 226022309
$775,000 3041 Vila Flor Pl 2 (2 0) 2129
$1,099,000
$1,099,000
12603 Residential Homes Shingle SpringS
12701 Residential Homes greater
$1,975,000 5700 Semor Dr 1 (1 0) 744 80 225130698
$2,199,500 3359 Saint Ives Ct 4 (3 1) 4400 7.18 226044343
$3,499,999 765 Sierra View Ct 5 (4 1) 5140 5 226038275
$3,949,000 5037 Milton Ranch Rd 7 (6 1) 8985 5 226022504
12604 Residential Homes
Rescue / luneman
$549,900 1215 Spring Crest Ct 2 (2 0) 1587 8.45 226038187
$575,000 3901 Luneman
(2 0) 1008 5.11 226028939 $584,900 4410 Rossler Rd 2 (2 0) 2008 5.06 226043816 $799,000 1181 Old Rock Bridge Rd 3 (3 0) 2150 5 226046181
$429,000 6597
$685,000 2812 Bronzecrest
$875,000 1072 Champagne Ln
$949,000 1988 Cold Springs Rd
226041536
226040068
226036607
$394,000
$410,000
$444,000
$469,000
Home Source Serving El Dorado County
12801 Residential Homes camino, cedar grove
$449,999
226043419
$499,900 5600 Upper Siesta Ln 3 (2 1) 2359 0.63 226012399
$499,995 5045 Free Fox Ln
$505,000 5295 Rooster Ln
$510,000 3090 Horseshoe Bend Rd
(2 0) 1392 4.71 226033002
(2 0) 1466 2.44 225144036
(3 0) 2392 10 226049862
$510,000 3640 Omo Ranch Rd 2 (2 0) 1677 5.52 226033264 $515,000
$575,000 2843
$599,000
$675,000
$725,000 4339
$759,000 2829
$769,000 3586
$849,900 4649
12802 Residential Homes pollock pineS
226000057
$379,900 6169 Kokanee Ln
$380,000 3960 Garnet
$385,000 5768 Lupin Ln
$387,000 5531 Begonia
$389,000 2895 North
$399,000 5123 Rainbow Trl
$399,000 5163 Loch Leven
$399,950 2845 Viona Rd
$399,995 6240 Mackinaw
$410,000 6224
$413,000 5925 Sly Park
226043882
226009247
226007905
226033926 $419,000 2895 Viona
Constructed in 2021 by one of the area’s nest builders. Single level with lots of light shining through. Upgraded nishes with all the frills. High speed Cal Net Internet. Large open kitchen opens to the dining and family area. Six burner gas range, granite slab and luxury plank vinyl oors. Solid stained interior doors with exposed knots. Huge master suite with a bay window, walk-in closet and custom built-in organizers. The guest bath features a six foot, extra deep soaking tub. The garage is a dream, oversized, fully nished and a bank of custom cabinets. The outside is landscaped with natural beauty and ease of maintenance. It features stamped and stained concrete and a wide, private asphalt driveway. The 50 year hip roof has high end extra thick shingles.
