California Home Loan - Bring It Back Down
How much is too much?
The median home price in San Diego is about $550,000, while the median household income is about $65,000. How is that possible? What's the catch and how long will it be before a California home loan starts to cost too much?
Keeping pace with California real estate
The big secret to California home loans is really no secret at all - adjustable rates. A finely tuned ARM from the average California lender will probably charge about 5% interest for the first few years of a loan agreement, given the following terms:
- There is no down payment. Really, does anyone making $65,000 a year have $55,000 available for a 10% down payment? No way.
- This is an interest only loan - none of the monthly payments is going toward the loan principal and increasing that all-improtant equity.
And who needs it? California real estate has been on a tear for the last 10 years now, and seemingly all you need for f ahome equity loan is to move in and fill out the form. We can just keep refinancing our loans into interest only options every 5 years and we'll be great - we'll never really own our homes but we'll make a whole lotta money living in 'em!
Getting real with the California home loan
Well, Comparing Mortgages and Loans also compares real estate trends all across the country, and the trends are pointing toward disaster for people who paid too much for their California homes and are trapped in a California home loan they simply cannot afford.
Apply today.
Our expert California mortgage associates will show you how to finesse the transition from the anything goes mentality dominating California real estate to a more practical, more reliable type of home loan that will actually have you keeping and owning your home through the inevitable burst of the bubble. The one benefit we all have is that home loan rates are still relatively low, meaning we can find a solution to the brewing crisis surrounding your California home loan.
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