In a place like Walnut Creek, where homes are relative expensive, getting the right home loan is extremely important. Whether you are purchasing a home, refinancing, or looking for a home equity loan, you want to get the best loan deal possible.
Home Purchase Loans
Buying your first home—or any subsequent home—is a big commitment. You have your down payment, and you need to find a loan. You can get a fixed rate loan, and you can pay it back over fifteen, twenty, or thirty years. The longer you take to pay off your mortgage, the more it will cost you in interest. If you choose a shorter loan term, however, your house payments will be higher.
You can also choose an adjustable rate loan, where the interest rate increases or decreases to correspond with the prime lending rate. ARMs are a popular option, especially when interest rates are decreasing.
Another option that is popular in markets like Walnut Creek is a hybrid loan. You could get a loan that starts with a low fixed rate of interest, and then converts to an ARM later. This is especially advantageous if your income is likely to increase due to job advancement or other factors.
Refinance Home Loans
If you own a home in Walnut Creek, your equity has gone up because the market has appreciated. One way to liquidate your equity so that you can use the money is to refinance your home for the full appraised value. You can use the money that you had tied up in equity for any thing you want, and you can deduct the interest on your income tax.
Another reason to refinance is to lower your interest rate and payments. If you have a high interest fixed rate loan, or if you have an ARM and are concerned that interest rates might rise, refinancing to today’s rates can save you quite a bit of money.
Home Equity Loans
If you do not want to refinance your home, but would still like to liquidate your equity, a home equity loan, or second mortgage might be a better option for you. You continue to pay on your first mortgage, and take out a second loan using your home equity as collateral.
Another excellent option is a Home Equity Line of Credit. You set up an account where you can write checks, using your equity as collateral. You only make payments and pay interest when you actually use the money from your line of credit, and you can repay it at any time.
If you are looking for a home loan in Walnut Creek, California, we can help. Fill out the form at the bottom of this page, and one of our agents will contact you.
