You are ready to purchase a home, and you are on a quest to find the lowest mortgage rates in Colorado. Contacting Dave Kevelighan is one of the best moves you can make.
Mortgage rates can change often, sometimes daily. Getting the most favorable interest rate is important, since the lower the rate, the less your monthly payment. In addition, it can save on thousands of dollars of interest paid over the life of the loan in 30 years!
Look at Options
Many first-time buyers rely on their realtor to find them a lender when purchasing their first home, and many people who are wanting to refinance may continue with the same lender as before. This may not be the best decision, since that lender may not be well priced for refinance transactions. There are a number of refinancing options out there, and homeowners should do a little legwork and check out other options, such as a mortgage broker with many wholesale lending resources. Dave Kevelighan is a mortgage broker that has over 100 wholesale lender relationships.
Fees
While interest rates are of primary concern, don’t overlook the fees you will be charged by the lender as well as other closing costs. These are one time charges, and they can be significant. If you are refinancing, try to make sure you are lowering your interest rate & monthly payment, and not spending more in closing costs than you are in annual interest.
Rates and Terms
All of this depends on your budget and projected income. An adjustable rate mortgage means that your interest rate is adjusted periodically based on the rise or fall of prime and other rates. That means it will change…sometimes up, and sometimes down. If you can handle a larger monthly payment, a 15-year or 10-year term on a fixed rate loan will save money on interest over the life of the loan, as well as a lower initial interest rate than standard 30 Year Fixed.
Credit Scores
If you’re concerned about credit history, most credit scores can be improved. If you have the time and money, pay off any car loans and reduce your credit card debt. This will help improve your debt-to-income (DTI) ratio, and the better that ratio, the more likely you’ll be able to obtain loan approval.
Types of Mortgages in Colorado
The most popular type is the 30 Year Fixed. It will generally have a low monthly payment and can ride out economic ups and downs. If you can lock-in a very low interest rate, you should be fairly comfortable. However, realize that you will be paying interest on the principal balance for three decades, and that amount can add up to quite a sum.
Adjustable Rate Mortgages (ARM’s) start with a lower interest rate initially. These loan terms will be structured so that after a specified period (usually 5-7 years), the rate will increase.
Less common are interest-only loans. In this case, you won’t be paying anything toward the principal for a fixed time period of time, usually up to 10 years. This is beneficial if you don’t expect to sell your current home rapidly. After a sale on the property is completed, any proceeds required to payoff the principal balance are paid in full, and the seller usually keeps any remaining proceeds.
For more mortgage industry news and interest rate trends stay tuned to DaveKevelighan.com.
