Homes in California, Where
Lenders Offer Half-Century Loan

Given high home prices, some lenders offer interest-only, 40-year mortgages. California, where the median home price is $576,360, was the first state to offer the half-century loan. Here are homes in California.

PLACE/PRICE: Santa Cruz, Calif. / $529,000

TAXES: $2,379 per year

THE PROPERTY: 2 bedrooms, 2 baths, 1,109 square feet

DESCRIPTION: This end-unit condo has a patio, a deck and a one-car garage. There are granite countertops, stainless-steel appliances and new carpeting. There are vaulted ceilings with skylights and there is a loft.

NOTABLE: The 2006 median condo sale price in Santa Cruz as of August is $526,769, up $100,000 from two years prior. The media price for single-family homes is $750,425, up from $622,323 in 2004, according to Santa Cruz Association of Realtors.

PLACE/PRICE: San Diego / $579,000

TAXES: $6,900 per year

THE PROPERTY: 3 bedrooms, 2 baths, 1,364 square feet

DESCRIPTION: This 1960 one-story had walks removed during remodeling, opening up the kitchen and living areas. The living room and family room has a fireplace, there is a large deck and a 2-car garage.

NOTABLE: The median detached, single-family home price in San Diego is $575,000, reports the San Diego Association of Realtors. In the past three years, the median price increased 68%. Interest-only loans account for nearly half of all loans here.

PLACE/PRICE: Rancho Cucamonga, Calif. / $614,900

TAXES: $3,900 per year

THE PROPERTY: 3 bedrooms, 2½ baths, 2,649 square feet

DESCRIPTION: This 1989 home has a display niche in the foyer, a laundry room with a sink and a 3½-car tandem garage. The master bedroom suite has a fireplace, as does the living room. There are skylights too.

NOTABLE: This home with a heated swimming pool and a spa is located just minutes from the headquarters of mortgage company Statewide Bancorp, which in March was the first local lender to offer the 5-year mortgage loan in the state of California.

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