Get The Scoop: How To Find Today’s Hidden Hot Neighborhoods In Los Angeles

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With Los Angeles home prices averaging over $700 per square foot and the median sold home price of almost $1 million as of August 2023, it’s important to get the most out of your home buying dollar. One way to maximize your investment is to buy in an up-and-coming neighborhood. According to Realtor.com, an up-and-coming neighborhood is one that isn’t the best-known or most-popular, but has potential for rapid growth.

Another word for up-and-coming neighborhood is “transitional.” That means the neighborhood is transitioning from more affordable, and possibly with fewer amenities, to a high-priced neighborhood with many amenities and desirable qualities.

Los Angeles has been compared to a small country, with over 400 neighborhoods. We’ve chosen a few that qualify as up-and-coming for you to consider.

Palms: A Small Corner of the Westside

Palms is adjacent to several better-known neighborhoods on the westside of Los Angeles. According to California.com, the average age of Palms residents is slightly over 30. That makes Palms an interesting choice for younger professionals. As Palms is near Culver City, you will find a lot of film industry professionals in the area.

Playa del Rey and Playa Vista

Also on the westside, and sometimes included as part of “Silicon Beach,” Playa del Rey and Playa Vista are close to the beach as well as LAX. These neighborhoods have very different characters, with Playa del Rey’s homes tending to be unique mid-Century models to contemporary coastal homes, and Playa Vista primarily including newer condominiums. 

Beverlywood & Cheviot Hills

A famous writer, Ray Bradbury, lived in Cheviot (aka “Chevy”) Hills for years. In more recent years, celebrities like Jennifer Aniston and Sylvester Stallone have had homes in this small, peaceful, yet hip neighborhood that’s adjacent to both Beverly Hills and Beverlywood. Both neighborhoods have ample amenities and manage to blend a suburban feel, including parks and golf courses, with urban amenities like upscale restaurants and charming boutiques.

These are just a few of several dozen up-and-coming Los Angeles neighborhoods. You can locate other “hidden gems” and neighborhoods with potential by working with real estate professionals who are “in the know,” like California Platinum Realty.

Sources

Bungalow. “The 9 Best Neighborhoods to Live in Los Angeles.” url: https://bungalow.com/articles/best-neighborhoods-in-los-angeles-california

Kouyoumjian, Natasha. “The 9 Newest Up-and-Coming Los Angeles Neighborhoods,” California.com, 19 November 2022, url: https://www.california.com/the-newest-up-and-coming-los-angeles-neighborhoods/

Realtor.com “Overview: Los Angeles Home Prices,” url: https://www.realtor.com/realestateandhomes-search/Los-Angeles_CA/overview

California Platinum Loans

  https://californiaplatinumloans.com

Mortgage Rates Over Time: Are Today’s Really The Worst For You?

Mortgage rates

We continue to see changes in the home buying and mortgage loan markets because of rising interest rates. The Fed has been increasing interest rates since 2022 to help reduce inflation, which reached over 8% last year. 

If we look at mortgage rates over time, we can see that the low mortgage interest rates we saw between the 2010s and 2020 were unusual. In 1990, the average mortgage interest rate was 10.13%. In 1979, the average mortgage interest rate was over 11%. Let’s look at mortgage interest rates in recent decades.

Mortgage rates during the 1970s

The 1970s started out with mortgage loan interest in the mid-7% range, similar to today. People remember the 70s as a decade for roller disco, leisure suits for men, and the rise of fast food restaurants. The decade ended at an interest-rate high of 11.2% in 1979. 

Mortgage rates during the 1980s

The 1980s began with a lot of economic disruption. The U.S. was in a recession and also experienced high inflation. If you think mortgage rates are high now, imagine being around in 1981, when they topped 18%. By the mid-80s, rates had declined, and averaged around 9%. The 80s ended with mortgage interest of 9.78%, just under the 10% mark.

1990s mortgage rate trends

The 1990s were known as the first dot.com era, with a lot of excitement and investment in the early internet. “You’ve got mail!” was the greeting for America Online and the title of a popular movie. The upswing in the economy combined with more consumer confidence, and interest rates shifted downward. The decade started with interest rates at or near 10%, but it ended with a 6.94% interest rate in 1999.

Early 2000s mortgage rates

In 2000, mortgage rates reached 8.05%, but declined to about 5.5 to 5.9% in 2003. Many new homes were built, but the 2008 worldwide mortgage crisis led to a recession that affected home prices and lives around the world. Short-term interest rates reached zero at one point. By the end of the decade, mortgage interest rates were about 5%.

Mortgage rates after 2008

After the mortgage crisis began to work itself out, interest rates entered a lower level than they had been before. Since the 2010s, we became accustomed to mortgage rates ranging between 3% and 4%. During the 2020 pandemic, interest rates were very low. Since that time, we’ve seen increased up to today’s average of slightly over 7%. Interest rates may continue to rise, but there’s a good chance they will never reach their shocking peak of over 18% in 1981. Working with an experienced loan professional can help to navigate mortgage interest rate ups and downs.

Sources

Caginalp, Ruben. “Historical mortgage rate trends: 1970s to 2023,” Bankrate, 20 July 2023, url: https://www.bankrate.com/mortgages/historical-mortgage-rates/

Graham, Kevin. “Historical Mortgage Rates 30 Year Fixed,” Rocket Mortgage, 22 June 2023, url: https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed

California Platinum Loans

  https://californiaplatinumloans.com

3 Smart Ways To Score Your Ideal Jumbo Mortgage In LA County

Jumbo loan mortgage

According to Wall Street Journal’s BuySide, “to buy a pricey house or live in an expensive location, many home buyers must go big to go home.” That means they need jumbo mortgages.

A jumbo mortgage comes with a different set of requirements than government-backed loans. If you need a jumbo mortgage, in amounts from $1.1 million up to $10 million, be aware that these loans represent more risk to lenders than government backed loans. 

A personal finance professional with Bankrate said, “When a chef has to eat his own cooking, he’s going to be more picky.” Picky, but not impossible. Here are three ways you can score your ideal jumbo mortgage in LA County:

Watch your Debt-to-Income Ratio (DTI)

Jumbo mortgage lenders, whether they’re a private investment consortium or a bank, want to see that you don’t have too much debt when making a jumbo mortgage offer. They determine whether you have too much debt using a ratio that compares your monthly or annual debt payments to your monthly or annual income. This is called the “Debt-to-Income Ratio” or DTI.

Most jumbo mortgages require a DTI that’s under 43%. For example, if you have income of $15,000 a month, you can’t have combined debt payments exceeding $6,450 a month, which will include the jumbo mortgage payment.

Have good cash reserves

Most jumbo mortgage lenders will want to see that you have enough cash in the bank to cover at least six months of mortgage payments, including property tax, insurance, and any community or HOA dues. Many lenders will want to see at least a year’s worth of reserve funds when considering a jumbo loan.

Work with an experienced mortgage broker

How many times have you looked at an online mortgage interest calculator? It’s interesting to see how just a small change in interest rate can change payment amounts and total amount that you will owe.

An experienced mortgage broker can show you the financial impact of your jumbo mortgage over time. They can become a trusted partner in structuring your financial present as well as your financial future. Probably the single most effective thing you can do to get the optimal jumbo mortgage in Los Angeles is to work directly with an experienced loan professional through California Platinum Loans. 

Sources

DeCarbo, Beth. “What Is a Jumbo Mortgage, and How Do You Get the Best Rates?” BuySide WSJ, 21 June 2023, url: https://www.wsj.com/buyside/personal-finance/what-is-jumbo-loan-mortgages-ca4ae765

California Platinum Loans

  https://californiaplatinumloans.com