Oakland Three Ways to Build Equity
     Oakland
China Town Claremont East Oakland North Oakland Oakland Hills Piedmont West Oakland Temescal Lakeshore Montclair Glenview Point Richmond  




Check Out The
HOT LIST


REO SEARCH
257 Properties For Sale in San Ramon
Select A Location
Select an Area
Set A Price Range
Set Min and Max Price
Select A Property Type
Se A Type of Property
Set Beds and Baths
Add Bed and Bath Selections


Three Ways to Build Equity in Oakland, CA


Oakland Homepage: Real Estate Homepage





RELATED ARTICLES


Also..
  • Buying Articles
  • Selling Articles
  • All Real Estate Articles

    • Three Ways to Build Equity in the Oakland CA real estate Market


    Market fluctuations, demographic location, and owner upkeep all play an essential role in the value of your Oakland home. Your equity is the difference of what you owe on your mortgage(s) and the current market value of your property.

    In many cases equity takes time to build up any substantial amount. Of course when the market turns on a flat or downward spiral you can lose a substantial amount of equity if you are not prepared for it.

    The average appreciation is 7% per year for a national average and in some cases we have seen up to 20% or more. Although these are rare occurrences they make the Oakland real estate market the most lucrative marketplace in the country.

    One of the most common misconceptions about Oakland real estate is leverage. When you have exceeded the 80% Loan to Value limit on your mortgage you are eating away at your own personal wealth. Your interest rates are higher and your overall cash flow is decreased substantially.

    So how can you build and protect your equity in any type of situation while keeping your shirt on your back There are several options.

    The first and most common way to build equity is the old fashioned fixed rate loan with terms between 10 - 50 years. Of course the longer the term the more prolonged the pain of a mortgage may be.

    If we were to look at a number line and we placed from left to right the terms (length of time for the fixed period) of the fixed rate mortgage you would see starting at the left 6 months to 50 years. All of these would be increasing 6 months, 1 year, 2 years and so on...

    All of these numbers would be on the bottom of this rule. Secondly on top of the number line you would look at interest rates starting from the left let's look at the 6 months term 5.5%, the 1 year term 5.87% and the rates increase upward the longer you secure your fixed rate period.

    The second option is using an equity builder program such as the biweekly payment plans or the extra principle payment once a month to your mortgage lender. Problems here are the extra amounts of cash going to the lender and the extra steps in paying your biweekly payments.

    The biweekly payment plan works because interest is calculated on a daily principle balance if you pay 1/2 of your mortgage on the 1st of the month and 1/2 on the 15th of the month you essentially cheat the system because you are breaking the interest accrual down from every 30 days to every 15 days. Hopefully your lender is quick with payment processing.

    The third option is to calculate the difference between your fixed rate mortgage and an interest only mortgage payment. By obtaining an interest only payment and paying the 30 year fixed rate payment you are again cheating the system by lowering the principle every month.

    This results in building equity faster than the traditional fixed rate mortgage.

    [ ..More About Oakland Three Ways to Build Equity ]



    Home | Free Reports | Free Forms | Financing | About | Local Info | Search | Partners | Login | Contact | Tools | List With Us | Relocation
    Equal Housing Opportunity - Oakland Real Estate ©2010 All Rights Reserved - Privacy Statement