http://www.california-home-mortgage-rates.com/n65.html California home loans are going to be expensive - and you're going to have to come up with ways to make California home loans affordable. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 The numbers are in The reports on the 2005 housing market are in - and things could be worse for California home loans: Home appreciation rates are dropping - 2004 saw 27% increases in average home prices, 18% in 2005. The average California family owns a home 8.5 times greater than their annual income - the national average is about 3%. Interest rates on the majority of new California home loans are higher than for the previous year. Homes are becoming less of a beneficial investment, while costing families comparatively more. And to top it all off a California home loan is slowing becoming more expensive. Something has to be done, and you're the only one who can do it. Making California home loans work Here are the facts regarding your California home loans: you are going to pay a lot of money. You are going to take on extremely risky opportunities just to afford the home you want to purchase. Over extending your income abilities is not an exception, its the rule - less than 15% of all Californians' can afford their homes based on traditional lending indicators. But people are doing it - every day people are finding ways to make these expensive home loans work. How? By getting creative: Speak with your lender about financial opportunities that can milk more money for your purchase. You probably don;t have $100,000 to drop on the down payment of an average $500,000, so pay less - lenders are still willing to provide zero-down financing. Remember - the average home owner stays in their home for about 7 years - perfectly matching the greatest amount of time you can lock in on a fixed rate in an ARM. Interest only programs, flexible payment ARMs, whatever it takes to get your monthly expenses lower - the smart California home buyer will look for the California home loans that will help them live in their home, not necessarily own their home outright. Maybe its time you start expanding your options? Maybe countrywide home loans will have to play a role now t hat basically no one can afford a California home. Adjusting your state of mind This last slice of creativity might be a stretch for some people, thinking of their home as a temporary investment rather than a full out home purchase. But think about it - California home loans are necessarily flexibly to cope with the insanely expensive California home. And many people believe California home prices are actually going to drop. So, holding onto your costly California home loans for an entire 30 year term may prove a financially unsound decision - you're paying way too much of your income toward a home to live a full life, and at the end of the show you might have a home that provides you will significantly less returns than you expected and worked so hard to create. Sat, 26 Jul 2008 15:00:00 EDT