Here are some important decisions you’ll have to make at that time:

We have a google map tool that enables you to see information on each one of the Los Angeles neighborhoods, as well as search the area for homes and condominiums for sale by price range. CLICK HERE TO VIEW

• What type of mortgage should you choose? It all depends on how much risk you’d like to assume. For less risk, you’ll want a fixed-rate. For more risk, you can try a 7/23 or a 5/25. And for the most risk, there’s always an adjustable-rate (ARM). The loan officer should help you decide which is best for your situation.

• Should you float the rate or lock it in? If you think the mortgage rate will drop before you close, float it. If you don’t want to take the risk of it rising, however, lock it in.

• How long should the lock be? The longer the rate lock, the higher the rate will generally be. You should base the length of the lock on when you’re supposed to close the loan. The shorter the lock, the more important it is to furnish your lender with everything he or she will need to get your loan approved.

• How many points do you want to pay? Most first-time borrowers don’t realize that there’s an inverse relationship between the number of points you pay (a point is one percent of the loan amount) and the interest rate you receive. Points are paid in cash at the closing, but the federal government allows you to deduct them from your income taxes during the year of the closing. Or you can also pay them over the life of the loan, which will increase your rate. For instance, if you need a $100,000 mortgage, each point is $1000. If you decide to “buy down” your loan (paying more points to get the lender to lower your rate) with five points, you’ll need $5000 in cash at closing just to pay the lender.

  • You receive two significant benefits from a buy down:
    • A larger tax deduction;
    • A lower interest rate for the life of a loan.
  • Every time you apply for a loan, the lender, by law, has to provide you with a “good faith” estimate of your closing costs. You may even be asked to sign the document, to prove you’ve seen it.
  • If the actual closing costs turn out to be significantly higher than the estimate, you may need to consult a real estate attorney to re-negotiate it. If any charge seems particularly unfair – and was not part of the estimate – you should refuse to pay it.
  • Always read every document before you sign it, take a copy with you, and don’t be afraid to ask questions. It pays to be cautious.

<< Back to Los Angeles Mortgages

We at Valerie Fitzgerald and Associates realize that you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to email us at info@valeriefitzgerald.com or call us directly at 310-285-7515.  If you or anyone you know is looking to buy or sell a home, please note that we can provide detailed information and access to:

• Beverly Hills Real Estate
• Brentwood Real Estate
• Bel Air Real Estate
• Sunset Strip Real Estate
• Los Angeles Real Estate
• Santa Monica Real Estate
• Malibu Real Estate

You can count on the services of Valerie Fitzgerald and Associates to provide you with information you can trust.

Phone

Address

Email

Tel: 310-285-7515
Fax: 310-271-9204

301 N. Canon Drive,
Suite 215,
Beverly Hills CA
90210

General Information
Webmaster
Sales