Category Archives: Real Estate
What are the Advantages of a 30-year Mortgage?
If you want to buy a house, but you realize that no matter how much you try to calculate and save money in the short term, you cannot get enough to be able to purchase the home that you want and need. But there is a solution for this situation: getting a loan, which is a financial instrument invented since the ancient times. From the first banks in Assyria and Babylon that granted grain loans to farmers, we have today multiple financial instruments, some of them extremely complex, their role being to make our lives easier – and also make profit for bankers, that`s true.
If you consider a mortgage, you can take it for long term (30-year mortgage) or short term (15-year mortgage).
There are many advantages of 30-year Colorado mortgages. Besides being one of the only loan solutions through which some people can actually afford a home, the mortgage comes with a number of other benefits.
First, it allows you to buy a house without having to save tens of thousands of dollars. You will only pay an affordable monthly interest, during the duration of the contract. The longer the repayment period, the lower the monthly payment. You will pay more in the long run, but the money you will have to take out from your pocket each month will not be a burden, and besides, you can also get a higher amount of money, which means that you can buy a bigger or more sophisticated home.
With a mortgage, you pay the installment for your own house, which is better than paying a monthly rent for a house that is not yours.
So, if you find yourself in a situation where you have to pay rent in order to have a home, you might want to consider a Colorado mortgage instead. The monthly rent can become the monthly interest for your own home. Thus, in maximum 30 years, you can be the owner of a house, instead of paying a rent for a home that does not guarantee you a permanent stay.
Other advantages of a 30-year mortgage include:
- You may be allowed to rent the house even if you still have a mortgage on, which can be beneficial in some situations, allowing you to make some extra money. However, you will have to discuss this aspect with your mortgage lender. Some mortgage lenders will allow you to rent with your existing rate and terms, while others may charge an extra fee, ask you wait a few years before granting you the option to rent, or require you to refinance.
- You have the possibility of early repayment, if you can afford it and decide that this is what you want
- It can be an investment for a real estate business
- You can get a mortgage refinancing in better lending conditions
Find out how much you can afford to pay monthly
Considering that failing to pay your mortgage installments entails the takeover of the house by the banking institution that granted you the loan, it is very important to make a few calculations and find out how much you can actually afford to pay each month. As a rule, the monthly rate should not exceed 30% of your monthly income. This helps you to cover your current expenses and possible unforeseen situations, without worrying that you cannot pay the installment.
For your peace of mind, you can choose a fixed-rate mortgage to avoid expenses that may arise amid rising interest rates.
How to Find an Affordable Home in Colorado
Population growth in Colorado is a well-known reality. The state draws so many people due to the high standards of living, jobs and career opportunities it has to offer. It is a good place to live, there is no doubt about it, but life can be quite expensive here.
Some of the first things you are interested in when moving here are the housing options. Real estate market in Colorado is expensive and homes are not expected to significantly drop in price anytime soon. There are several reasons contributing to this current reality:
- Historically low interest rates that turn more people from renting to buying their homes or make people able to afford bigger homes, even if these are more expensive options
- The imbalance between housing demands and supply, which often creates bidding wars
- The Coronavirus pandemic, which forced so many people to work from their homes; many of these individuals are now looking for bigger places to live that meet their new needs
However, even if the living standards in Colorado are high, there are also people who cannot afford a more expensive home, on the contrary; some of them may actually have to downsize.
In the current real estate market, it is difficult to find affordable housing options, but definitely not impossible. The easiest thing you can do is ask around; maybe someone you know is selling, or knows another home seller. If you are lucky enough to find a home this way, you will avoid going through a bidding war, as well as many other inconveniences related to the process of buying a house.
But, in most of the cases, things are not as easy as this. Sometimes, people are looking for months until they find something – and when they find it, someone else purchase it because they are willing to pay more.
The next thing you should do is to search for the most affordable places to live in Colorado. The average home value in Denver is currently about $450,000, so you should avoid the Mile High City. Almost as expensive are Arvada (median home price: about $440,000; median monthly rent: $2,200), Lakewood (median home price: about $436,000; median monthly rent: $1,700) and Longmont (median home price: about $409,000; median monthly rent: $1,950).
On the other hand, the cheapest place to live in Colorado is Pueblo, where the median home price barely reaches $190,000, and the median monthly rent is about $1,000. Pueblo is followed by Cañon City (median home price: about $244,000; median monthly rent: $700) and Grand Junction (median home price: about $260,000; median monthly rent: $1,300).
If you prefer, you can also go for good old fashioned small towns, where you can peacefully and enjoy inexpensive Rocky Mountain fun: Fort Morgan, Sterling, Craig, Fort Lupton, Lamar, Trinidad etc. Make sure to consider looking at homes for sale in Erie CO.
In order to determine the most affordable place for you to live in Colorado, you must also ask yourself how much money do you make and how much do you need to spend to live there.
Start Looking for a Reliable Mortgage Broker – Denver Recommendations for a Smooth Borrowing Process
With all the technology available nowadays, finding the best mortgage broker Denver has to offer may be easier than ever before. However, all the hype and the complexity of today’s marketing campaigns might make you weary of choosing any particular deal, since you might miss out on a dozen others.
In the following, we will focus on helping you determine exactly what to look for in a mortgage broker, and how to find the most advantageous offers, as well as the reliable and trustworthy brokers in the Denver area.
Why Should You Find a Reliable Broker?
Mortgage brokers form excellent relations with banks and credit unions, and are able to offer impressive results when it comes to finding the ideal mortgage deal.
Another good reason to look for a Colorado mortgage broker is that they not only have a lot of knowledge, and can advise you on who to trust, what deals to consider, and what to steer clear of, but they’re also very open to communicating and educating their clients.
Finally, with the right mortgage broker you have the assurance that you’ll be able to close in record time. The best brokers can complete their closings in as little as three weeks.
Using Online Materials to Your Advantage
The internet can be an invaluable asset when doing background checks on any mortgage broker, Denver lenders and brokers usually being able to present proof of a strong online presence. So let’s take a look at what measures you can take to make sure you’ll find the right mortgage broker Denver professional:
- Reviews can help you determine not only how happy people are about any specific deal, but they’ll also assist you in finding out more about the actual brokers who are behind the offers. Make sure the company you’re looking to work with has only positive feedback from customers who have used their services and chosen their mortgage deals.
- Is there any proof that the lender or broker in question actually helps people with valid offers and good customer support? Social media is the best place to find out more about any company’s online presence and reputation, so find their social media pages, and make sure they are engaging and helpful with their existing clients.
- It’s also important to find out just how knowledgeable and reputable your broker is. Do they have a valid license? How many years have they been working in the business? Can they give you valid recommendations on selecting the best real estate agent or on any down payment assistance programs?
- Finally, try to learn more about their actual guarantees. Anyone can use big words and present deals that might seem very advantageous. However, not all of them can give you actual guarantees regarding the legitimacy of their claims. To find out whether they are trustworthy, ask about fast pre-approval guarantees, on-time closing guarantees and the details of what would happen if the company doesn’t close on time.
Armed with this knowledge you can sift and sort through the various offers more easily and ask the right questions once you get on the phone. Also, you’ll soon realize that the extra work trying to do background checks and verify the claims made by the best brokers in Denver will put you in a better position to get a great offer.