Foster City, California, known as the Wisteria Lane of the Peninsula, is located in San Mateo County, California with a population nearing 30,000 residents. It is an affluent planned community founded in the 1960s in the marshes of San Francisco Bay. Several area public schools have won California Distinguished School awards in recent years. Several sports venues entertain residents and visitors alike. Foster City is also home to VISA International, world headquarters for the credit card company, and headquarters to several other major companies.
Whether you are considering a refinance to your existing mortgage, creating a new mortgage, or obtaining a home equity loan, options are available to you.
If you currently have a mortgage and want to refinance, let’s look at your options.
Fixed rate mortgage. A fixed rate mortgage sets your interest rate at a specified percent and it does not change for the life of your loan. The interest rate may be slightly higher than some other options, but if you are looking for a steady, stable monthly payment you can count on, this mortgage option may be the one for you.
Adjustable rate mortgage. An adjustable rate mortgage starts with a lower interest rate that lasts for a specified period of time at the signing of the contract, but will change over time with conditions of the economy and market indexes. You can, however, always refinance at some point to try to get a better rate.
50-year mortgage. This is a mortgage to consider if the home you want to purchase has a higher price tag than the average home.
Interest-only loans. You pay only the interest on the loan for the first ten years. This is a substantial help in the beginning of your loan term. After the first ten years, you will still owe the entire principal of the loan, and you will need to repay the loan with interest from that point on.
Option ARMs. If you are not sure how much you can afford to pay each month, this is a great option. You have four choices: an interest-only payment, a minimum payment, a 15-year amortized payment, or a 30-year amortized payment. Choose the one that will work best for you.
Balloon loan. You want to choose this option if you are only going to keep your home for five years and want the lowest interest rate on the market. This choice counsels wise decision-making skills.
Home Equity Loans
You have another option: a home equity loan. If you have an existing mortgage and have been paying into it for a few years, then you have accumulated equity in your home. You can choose to borrow that equity to pay other expenses as they may occur. In a home equity loan, you receive a lump sum payment and begin accruing interest on that money as soon as you borrow it.
Alternatively, you could opt for a home equity line of credit. You have access to the same amount of money as in the loan, but you only borrow and pay interest on the money you need at the time. You may have unexpected medical bills, need to purchase a new vehicle, or pay for a child’s college education. Life is full of surprises, and expenses always seem to be popping up that require extra funds.
Foster City, California has been reported as one of the safest cities in the nation, with only one murder per decade. Please fill out the form below to find out what mortgage, refinance, or home equity options are available to you.
