The California Association of Realtors has reported that interest rates are on the rise in 2006; in fact, they are the highest San Jose has seen for four years. The Association believes that this rise is due to inflation and interest rate expectations. However, don’t give up on your dream of owning a home in San Jose just because of high mortgage interest rates. Keep reading to find out how you can determine and utilize your economic standing in the San Jose marketplace.
Quick San Jose Housing Facts
Percent of Homeowners in San Jose: 56.9%
Percent of Renters in San Jose: 43.1%
Median San Jose Household Income: $47,493
Average San Jose Credit Score: 674
Best Cities to Live in near San Jose: Mill Valley, Coronado, Saratoga, Santa Barbara, Benicia
Median San Jose Home Value: $211,500
How Much House Can I Afford in San Jose?
One of the first questions prospective homebuyers must ask is this; what is my purchasing power? The question can be daunting and confusing, but fortunately, we are here to help. Before you can answer that question, we have some other questions you need to consider. They include:
- What kind of monthly mortgage payment am I willing to make? It is important to answer this question realistically to avoid future undesirable financial situations.
- What kind of payment plan will work best for me? The Fixed Rate Mortgage and Adjustable Rate Mortgage are the most popular; we recommend you check them out first.
- What are the property taxes like in San Jose?
- What are the interest rates like in San Jose?
- Use one of our free online mortgage calculators.
Once you have answered those questions, it is time to number crunch. Check out our online mortgage calculators, and start punching away. Once you have completed both of these steps, we guarantee you will have a good idea of our purchasing power in San Jose. From there, you will be able to determine your next course of action.
Refinancing in San Jose
Refinancing is an important economic tool, especially for those living in San Jose. A refinance is a new mortgage that replaces your old one and comes with lower interest rates and even a different payment plan. So even if interest rates are high right now, you may want to purchase a home anyway. You can always refinance when the interest rates drop.
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.