New Home Loans in Orange County

By Fran Walker
Local Lender Columnist
Feb 10, 2006
With its influx of new technology and glorious beaches, Orange County is on the up. According to many (but not all) industry experts, the same is true of house prices and interest rates. If you're one of the many planning to move to Orange County, which new home loan will you be opting for?

Points and Interest Rates

When you're looking for a new home loan, points and interest rates can seem daunting, but it is important to understand the difference. The interest rate applies to the total amount borrowed, while points are an up-front fee. Depending on your circumstances, either one can work in your favor. Higher points generally mean lower interest rates. So if you have some cash behind you, and you plan to stay put for a while, paying higher points at the outset of your new home loan may make the most sense.

Which New Home Loan in Orange County?

Whatever the current interest rate, you may be given the option of paying less. If you have come to this site ready to find a new home loan in Orange County, chances are you have done plenty of research about new home loans. You have to ask yourself whether you will be able to afford your chosen mortgage if interest rates go up dramatically. For example, a low price, interest-only mortgage may seem like a good move right now, but make sure you will still be able to afford it if interest rates double.

Whether looking at points, interest rates or new home loan choices, there are three things to remember: research, research, and research some more.

Sources:

• Article Alley

About the Author
Fran Walker has an honours degree in English Literature from Leeds University. She is a freelance writer, editor and researcher, specializing in education, health, safety and domestic issues and now writes and edits content for the UK Health and Safety Executive.