subject: Mortgage Loans Colorado Professionals [print this page] Have you taken a look lately at all the different mortgage loans Colorado home buyers can choose from? There's a tremendous selection, at historically low rates. You'll want to investigate these online, get an idea of the rates, and then contact a qualified mortgage professional for advice about the best mortgage for you.
Because rates are the lowest they have been in 40 years, most people prefer a fixed rate mortgage. That means the mortgage rate stays the same during the life of the loan. Adjustable rates are more popular when interest rates are rising. They typically start with a lower interest rate than the current fixed rate, but can rise to a predetermined cap.
How low your rate will be depends on several factors, including your credit, and how much you are borrowing. Some rates are also "teaser rates" because you can only get them by satisfying certain conditions, such as having a high credit score or paying "points" at closing. Points are one percent of the total amount borrowed. Paying this at the closing will often result in a lower rate.
The conventional fixed rate mortgage is typically for 30 years. You might be able to get a 15 year term, which will mean a higher monthly payment, but will save you thousands in interest over the total life of the loan. Consulting a mortgage professional will help you determine the best term for your financial situation.
You will also want to decide if you will pay your taxes and insurance with the monthly payment, or if you will pay those separate from the loan. If they are being paid along with your mortgage, you know they are being paid. You may choose to pay them separately when they are due. It is entirely up to you.
You should discuss the mortgage loans Colorado has to offer with a mortgage professional, who will advise you of upfront fees, and the total cost of the loan. Find a mortage professional with the Colorado Mortgage Lenders Association. It is important that the professional who advises you does so within the law and observing a code of ethics. This is the best way to find the loan that is the right fit for you.
