Move Quickly to Take Advantage of Crazy Low Interest RatesHousing prices have been going up in LA . . . a lot. You may have equity in your home again. Interest rates are crazy low. This is creating a unique situation that allows many homeowners to make improvements to their homes and actually lower the monthly mortgage.
You really want a new kitchen! And sure, the master bath, too. Let's estimate $40,000 for the kitchen and $20,000 for the bath. Your current mortgage is based on a $500,000 principle at 4.5%. You should be paying $2533 per month on a 30 year fixed.
So, you could up the mortgage to $560,000, and with interest rates currently at 3.75 or less, you should end up with a monthly payment of $2515 or less.
You can find our mortgage calculator and today's interest rates at http://www.mortgagehelplosangeles.com
Give me a call and let's talk about the details. 310-295-2613. Ask for Bill.
If you want to consider a larger project, see our recent post on construction loans.