Maximizing Your Home Equity for a Bigger Down Payment in Los Angeles and Beverly Hills, CA
Maximizing Your Home Equity for a Bigger Down Payment in Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you’re a homeowner in Los Angeles or Beverly Hills considering upgrading to a new home, you’re in a unique position to leverage your home equity for a larger down payment. Over the past several years, property values in these areas have soared, creating significant equity for homeowners. According to Redfin, the typical down payment for U.S. homebuyers is now $67,500, a 15% increase from last year. With rising equity in Beverly Hills and across Los Angeles, many homeowners are using these gains to make larger down payments, making their next purchase more affordable in the long run.
Here’s how using your home equity to make a bigger down payment on your next home in Los Angeles or Beverly Hills can be a game changer:
- Lower Borrowing Costs: By making a larger down payment, you reduce the amount you need to borrow. This leads to lower interest costs over the life of your loan, which is particularly beneficial in luxury markets like Beverly Hills.
- Potential for a Better Mortgage Rate: Lenders see larger down payments as a sign of financial stability. This could help you secure a lower mortgage rate, saving you more on your high-end Los Angeles or Beverly Hills property.
- Reduced Monthly Payments: A bigger down payment means lower monthly mortgage payments, making your next luxury home purchase more manageable while giving you more flexibility in your budget.
- Avoiding PMI: If you can put down 20% or more, you’ll avoid Private Mortgage Insurance (PMI), which can save you thousands over the life of your loan—a big plus when buying in Beverly Hills or any upscale Los Angeles neighborhood.
Bottom Line: If you’re thinking about selling your current home and upgrading to a new property in Los Angeles or Beverly Hills, now’s the time to leverage your equity. Reach out, and we’ll explore how much equity you’ve built and how it can help you purchase your dream home in these sought-after markets.
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value
