Guide to Refinance, Mortgage,
& Home Equity Loans in
Bakersfield, California (CA)

Located in Kern County, California, Bakersfield is currently one of the fastest growing cities in the United States. First settled in 1860, the Bakersfield population has continued growing since the nineteenth century, and it is easy to see why. With an amazing climate and easy access to major cities like Los Angeles, Bakersfield is a great choice for a home. With an average home price of a little over $125,000, it is one of the more affordable cities in the state.

Finding The Right Mortgage

If you are thinking of buying a home in Bakersfield, you may need a mortgage. Fortunately, you have a number of good options. Consider these mortgage types.

Fixed Rate Mortgage: This type of mortgage has one interest rate associated with it for the life of the loan. While that interest rate tends to be higher than other mortgage products, you will not have to worry about an increase in payments down the road.

Adjustable Rate Mortgage: If you like the idea of lower starting payments, this might just be the right loan for you. Unfortunately, with an adjustable rate product, those payments can go up as time goes by and your initial interest rate expires.

Fifty Year Mortgage: If you are looking at a more expensive home in Bakersfield, you may have difficulty qualifying for a traditional home loan. A fifty-year mortgage may be the perfect solution. While it tends to be an adjustable rate product, the payments might be a great way to afford the home you want.

Interest Only Mortgage: If you expect your income to increase in the next ten years, this could be the right loan for you. For the first ten years, you will pay only the loan’s interest. After the ten years are up, you will pay both the interest and the principal on your home.

Thinking of Refinancing?

If you already own a home in Bakersfield, refinancing may also be on your mind. You have several refinancing options to choose from. You could go with a traditional refinance loan, which will pay off your initial mortgage, leaving you with a new loan. It will have new terms and a new rate. You might be interested in this type of refinance loan if you think new interest rates or a shorter term would work better with your repayment plans.

You could also choose a cash-out refinance loan. This would also replace your initial loan, but instead of just replacing your old loan with a new one, you would also get a check for the equity you have built up in your home.

One final type of refinance loan is a home equity loan. Much like the cash-out refinance, you will convert the equity in your home to cash. However, you will only convert the equity to cash, you will not replace your initial loan, making it much like applying for a second loan on your home.

Finding The Right Lender

Whether you are ready for a mortgage in Bakersfield, or you want to refinance, the first step in the process is finding the right lender. There are several ways to go about this. First, shop around for the right interest rates. Decide which mortgage product you are looking for, then see which lender is offering the right interest rate on that product.

Keep in mind that you will need to ask about more than the interest rate. You will want to ask about the loan’s costs too. In some cases, a lender will offer a great interest rate, but very high loan costs. In other cases, the interest rate may be higher than you would like, but the loan’s costs are quite low. Get both the interest rate and the loan’s costs in writing from each potential lender you are considering.

If you are looking for a mortgage, a refinance loan, or a home equity loan, please take a moment to fill out the form below. A qualified lender will contact you to discuss your needs right away.

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Last Updated: Sunday, May 20th 2012