San Diego: Housing & Home Equity
By AJ FanterLocal Lender Columnist
Mar 20, 2006
Considering taking a home equity loan to pay off credit card debt, but concerned by recent economic reports that housing prices are grinding to a halt? You should know it all depends on where you live.
The National Trend
It's no secret that record low interest rates made the housing market one of the biggest sources of economic growth in the country. However, recent economic reports have suggested the housing market is slowing down.California Gold?
While the rest of country may only see between 0 and 5 percent appreciation this year, according to a recent report by the California Building Industry Association's Chief Economist Alan Nevin, housing price increases are expected to remain between 5-8 percent in California.San Diego Appreciation
While no longer increasing at the double digit rates that made San Diego one of the hottest housing markets in the country, a December report issued by DataQuick Realty News says that year over year housing appreciation rates in San Diego were at 6.4 percent with the housing market likely to remain tight in 2006.Advantage of Home Equity Loans
While there are many reasons why homeowners take out home equity loans, also known as second mortgages, one of the biggest is to pay off high interest credit cards. Why? In addition to paying lower rates, the interest on a home equity loan is generally tax deductible, making a second mortgage a sensible option for those who want to take advantage of the equity that has built up in their home.Getting Started
So, if you live in San Diego and you've made getting rid of debt a top priority for 2006, paying off your high interest credit cards with a lower interest, tax deductible home equity loan could still be the right answer for you this year.Sources:
About the Author
AJ Fanter is a freelance writer based in Reno, NV.