Broomfield Colorado Real Estate Loans Information

Luxury home for sale in Broomfield Colorado

Broomfield Colorado Real Estate Loans Information

Although there are fewer options for financing your home in Broomfield Colorado, what loans are left after the changes in 2008 are safer in many ways. Listed below are the major type loans that are available and are sensible and given is a general outline of the programs as follows:

Fixed Rate Mortgage

A fixed rate mortgage loan allows borrowers to pay a steady equal payment monthly for the life of the loan, which is usually 15 or 30 years. The interest rate stays the same during this time, but at the beginning of the loan period, only a very small portion of the payments is applied to paying the principal of the loan. This is the actual amount that is owed to the creditor. Fixed rate mortgages are recommended for persons who plan on living in their Denver area home for at least 10 years.

Adjustable Rate Mortgage

An adjustable rate mortgage, or often called an ARM loan, is more flexible than the fixed rate loan because the  rate of interest changes every year. The monthly payment are initially lower and may go down if interest rates improve from the time the loan was established. The important thing to keep in mind with ARM loans is the risk involved. If rates go up, so does the monthly payment on your Broomfield real estate property you purchased. This can create an extremely inflated payment that may be extremely difficult to manage. There are also hybrid possibilities that involve an initial period of fixed rate payments followed by an annually adjusted rate.

First Time Home Buyer Mortgage Loan Programs

First time homebuyer programs allow for a lower down payment and easier qualification process, and have lower rates. Some of these programs require education courses and may be subject to income thresholds and property value amount limits. Some of these programs change from time to time.

Shop Around for a Good Rate and Strong Advice

Even with incredibly low interest rates you should still check into loan programs with various loan officers and bank managers. Get quotes from at least 3 different lenders and compare interest rates, quality of service and closing costs. Closing costs are all the charges that are necessary to set up your mortgage loan and make financing possible. I recommend that you work with a Broomfield lender that meets their deadline and has everything complete for closing on your home and is dependable. Ask your friends for recommendations for a lender and your Broomfield Realtor can help you as well.

Have a great day.

Shaun Werkele


1 Response to “Broomfield Colorado Real Estate Loans Information”

  1. January 12, 2014 at 1:21 am

    Thanks for your thoughts, views and expectations when it comes to local real estate. Both buyers and sellers can benefit from you as an insightful agent who posts detailed online information.
    Thank you.

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