Overview of Colorado Home Loans
Be it buying a condo in Mile High City, Denver or getting a dream home in the snow clad highlands of Aspen, all you need is a home loan in Colorado. Now home mortgage loans are charged on two basic rate forms- fixed rate mortgage (FRM) and adjustable rate mortgages (ARM) subjected to loan tenure. The best loan deal however is the one that meets cost saving objective of a borrower either with low instalments/tenure/rates or an overall lower pay back.
Colorado Home Loans an insight
To decide which loan will work best, you need know, how each of them works. Colorado saw 10 percent hike in home price within third quarter of 2016, the table below will give you a perception about the state’s prevalent mortgage interest rates.
Colorado State Average Mortgage Rate
|Loan Type||Current rate (29/11/2017)||APR (29/11/2017)|
|5/1 ARM mortgage rate||3.88%||3.953%|
|30-year fixed jumbo mortgage rate||4.16%||4.256%|
|30-year fixed refinance rate||3.83%||4.277%|
So new home buyers, you need to know what kind of CO home loans you are entitled for
Conventional Loans : Traditional loans like FRMs and ARMs, even by maximizing your home buying budget, allows you to enjoy reasonable rate. Though the 30 year tenure is the most popular there are other tenure choices as well. However, the best part with fixed mortgage loans is, your rate which will be locked from inception and returns will be equally distributed over your loan life. If your loan tenure is 30 years, the longer you stay, the better will be your returns. But for the shorter tenures like 15 or 20 years, you need to stay at least, 8 to 10 years, and then if your payoffs seem higher than current interest rate, you can opt for refinance. Adjustable rate mortgage contrarily has fixed low installments in the introductory period but floating rates after that. Don’t worry, the rates revision will have time caps, fixed at the time of approval. One such popular loan is 5/1 ARM, herein, 5 represents fixed period and with revision interval every 1 year. For consumer interest, the government keeps rate caps for each state to check, alarming fluctuation of mortgage rates. Proves to be good consideration if you are expecting a higher incomes in the coming years or you will stay only for the introductory period.
Conforming Loans : These are the loan, that are in compliance with rules set by Fannie Mae and Freddie Mac, U.S federal mortgage governing bodies in matters of loan amount. Government sponsored loan and 0 down home loans for low and medium income groups like FHA loan, VA loan, and USDA loans are categorized as conforming loans.
Non - Conforming loans : As the name says, these loans are non-complaint to conventional U.S loan laws. Jumbo loans with higher rate of interest than common loans financing luxury properties is one such type. The category includes interest only mortgages as well where for introductory period, you will pay the interest only, and the principal merges installment after that. People with high credit score and low debt-to-income ratio are preferred for non-conforming loan.
Open ended loans : Represents loan types like home equity line of credit (HELOC) and mortgage refinance where your credit requirement gets approved based on the appraised value of your mortgaged property. Your home equity will act as your credit line; borrow: payback portion: borrow again.
Mortgage Brokers Guiding you
Now for the loan execution part, you will have offers from multiple Colorado mortgage companies. The offers might look lucrative but beware of all the hidden costs, processing fees, taxes and closing costs associated with them. So the best way of securing a home loans is comparing shopping and a mortgage broker, can assist you in this. At MortgageLoanSpot we assure you every assistance. With our resources of mortgage calculators, list of CO mortgage bankers, comparison of Colorado mortgage rates our existing customers tag us as reliable mortgage broker in CO. So, apply with us, choose the best offer and be assured, your financing will get approved, in least possible time.
Our Helpful Tools and Info
We have put together some helpful information and mortgage calculators to help answer any questions you might have.
Our complete list of loans along with their detailed description will help you decide which loan is good for you.
We have put together some calculators to help you make sense of the numbers. They are all easy and fun to use.
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