Very few spots in North America can truly be described as ideal to live, but the city of El Cerrito, California is one of them. Located just north of the San Francisco Bay area, consistently ranked the number one place to live in the United States, the city of El Cerrito is just far enough outside the metro area so that real estate is far more affordable, but not so far that commuting is difficult. The city of El Cerrito actually has two Bay Area Rapid Transit stops so you may not even need a car if you live in El Cerrito and commute to work every day in San Francisco or Oakland. With the beautiful Pacific Ocean just a mile or two away and one of the most respected college campuses in the world in Cal-Berkley just around the corner, it is no wonder that El Cerrito is becoming a more and more popular place to call home. If you already live in El Cerrito, you might be interested in taking advantage in a refinance that could significantly help in lowering your monthly mortgage payment, or maybe a home equity loan that could help you with renovations. If you are thinking about moving to El Cerrito, you might be in need of a first mortgage. Here are a few helpful tips to get you through the bank loan process in one piece.
Refinancing
When most couples make the big decision to refinance their homes, they are worried about how much they want to refinance for, what sort of renovations they want to make and how long the processing time is going to be. They seldom stop to think about picking an adjustable rate refinance or a fixed rate refinance. Why would it matter? Depending on what interest rates are doing at the time of your refinance, it could make a world of difference. Let’s say, for example, that interest rates are high when you choose to refinance. This would be a good time to pick an adjustable rate for your mortgage. You would have this rate locked in for a few years, and then it would adjust, most likely downward, and your monthly payment would drop right along with it. If interest rates happen to be low at the time of your refinance, then you would want to lock in that low rate for the life of your refinance by getting a fixed rate refinance. By getting a fixed rate now, you are ensuring a nice low set of payments for the life of your mortgage.
First Mortgages
The decision between a fixed and adjustable rate mortgage is just as important when it comes to your first mortgage. Even if you can see yourself refinancing in 10 years or so, there is no need to rush through this important decision. The key thing you need to do is to find a graph that shows what the prime rate has done over the past 10 years, 5 years and over the past year. This will give you some perspective on the historical trends and also an idea of where the rate might be going over the next few years. By being able to anticipate what rates are going to be like a few years from now, you will be sure to make the right decision on your first mortgage that will benefit you for years to come.
Home Equity Loan
Luckily for you, the decision between a fixed and adjustable rate on a home equity loan does not need to be made. All rates on home equity loans are fixed. This means your payments will be the same, year in and year out, no matter what.
If you would like more information on home equity loans, refinancing and first mortgages, please fill out the form below and one of our experts will contact you shortly.
