Don’t Be Fooled By the Monthly Mortgage on Your Santa Cruz Home

Posted by Lauren Spencer on Monday, April 11th, 2011 at 11:01pm.

If you’re searching for a new house, don’t get fooled into purchasing a Santa Cruz home you can’t actually afford. Many new homeowners find themselves in a pickle when they fall in love with a property that has high monthly mortgage payments. Being house poor could lead to a confining quality of life, increased stress and possibly foreclosure.

Before buying a Santa Cruz home, do your research to determine all the actual costs involved with purchasing and owning the home.  Without the proper tools and budget, you could be biting off more than you can chew.

Here are four tips to help you get a manageable mortgage:

1. Save up – If you’ve saved and can provide a large down payment, you’ll be able take out a smaller loan, which will result in lower monthly payments.

2. Check on interest rates – Talk with several lenders to compare interest rates. Also, improve your credit score before purchasing property because your credit score partially determines your loan’s interest rate.

3. Decide on the length of the loan – The length of your loan impacts your monthly payments. The shorter the time, the larger your payments will be. Use a mortgage calculator to find out what your monthly payments will be if you go with a 30-year loan versus a 15-year loan.

4. Don’t forget the last-minute costs – Put some extra money aside for any additional expenses that come up during the actual purchase, such as closing costs, taxes and homeowner’s insurance.

Save up a down payment for your Santa Cruz home, get pre-approved for a loan, know your limit for monthly mortgage payments and don’t get fooled by the real estate market. Doing the research before you start looking for a house will reduce your stress and help to ensure you have manageable mortgage payments.

If you need help calculating what your maximum mortgage payments should be or have any questions about purchasing a home, call me today at 831-662-6522 or email me at

For more information, please see my website at


About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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