Colorado (CO) Mortgage & Home Loan Guide

When it comes to deciding where to purchase your new home, whether for investment or for living, there are many choices. This country offers 50 states and for every state there are a number of regions and cities to consider. Why, then, should you think about taking out a home loan or mortgage and buying a home in Colorado? There are a few things to consider.

For one, Colorado offers a lot of variety to you in terms of geography. You may choose to live on the Front Range in the shadow of the mighty Rocky Mountains. You can wake up in your new home each morning and see the snow capped mountains stretching across the western horizon. Just the site of the mountains is a big part of what has brought so many to the front range of Colorado.

Another attraction is, of course, the mountain region. You can look to purchase a home in the ski towns of Vail, Aspen, or Breckenridge or in the cozy out of the way tourist town of Estes Park just outside the national park. Ski right up to your own condo or enjoy hiking the ski areas all summer when you buy in the mountains.

Finally, you can also look at the plains region, the western slope, or even the southern part of Colorado which kisses the north of New Mexico. There are so many regional options that you can find something for almost any taste.

If you are thinking that a Colorado mortgage or home loan may be just the thing for you, consider some of the mortgage options you will face as you begin. Understanding what is available in Colorado can help you to decide what will best fit your situation.

Conventional Mortgages and Home Loans

When you start looking for a mortgage in Colorado, you may first want to take a peek at what is available in the Conventional home loans. These include some of the loan types with which you are most familiar: Fixed Rate Mortgages, Adjustable Rate Mortgages, and Balloon Mortgages.

Fixed Rate Mortgages: Fixed rates mortgage are easy to understand and offer complete predictability throughout the life of the loan. The payments do not fluctuate and the rates do not change for the entirety of the loan. The only thing that can vary when you get a fixed rate mortgage is the insurance or the tax.
Adjustable Rate Mortgages: Adjustable Rate Mortgages (ARM) loans adjust their rates to fit the market. While the rates are lower at the beginning than with a fixed rate loan, they are subject to market conditions and can leave you with higher (or lower) payments than fixed rate loans at any given time during the life of the loan. Payment amounts change often.
Balloon Mortgages: Balloon mortgages generally give you the benefit of a lower initial interest rate than with a fixed rate loan. After 5-7 years, though, you may be required to make up the difference with a balloon payment; in other words, you will pay the difference all at once.

Government Loans

Government loans offer another option that you may want to explore. There are basically two kinds.

FHA Loans: FHA loans are designed by the federal government to help those with low to moderate incomes get loans. They are insured by the Federal Housing Administration so are also favorable to the lender. There are income requirements and you will likely have to come up with a down payment.
VA Loans: VA loans are to help veterans of the US military get mortgages or home loans in Colorado and other states. You must qualify, but will be able to get your mortgage without a down payment.

If you think that a Colorado mortgage or home loan sounds like something in which you may be interested, you should talk with one of our mortgage professionals. Simply fill out the form below, and you will be put in contact with someone who can help you understand your options and get started.

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