Colorado offers all the standard mortgage programs. In addition to these standard mortgages, Colorado has a few mortgage programs that are very unique to its state. Conventional 15, 20 and 30 year mortgages are the gold standard, with adjustable rate mortgages following a close second in popularity. However, in Colorado, balloon mortgages are often utilized as are jumbo loans. Unique to the state are three loan programs:
- Interest Buy Down 2-1. This program creates the opportunity for the home owner to pay down their interest in the first two years. Because so much of the interest is paid off at the beginning of the loan, mortgage payments will be lower for the borrower. Borrowers are only allowed to pay 3 points above market point value at the time of the loan, this often offers another opportunity to secure a lower interest rate than the market offers.
- Interest Buy Sown 3-2-1. This program is exactly the same as the 2-1 program with the exception that the interest rate is started at 3% lower than the note rate.
- Buy Down – Flex Rate. This mortgage is similar to the other interest first mortgages, except that the interest rate increases on the loan every six months instead of annually.
Colorado Mortgage Rates
Mortgage rates in Colorado are higher than the national average and surrounding states. This is for two specific reasons. Housing prices are higher in Colorado than in most other states and desirability to live in this area is high. Interest rates will also depend on loan qualifications set forth by the lender. Credit score, employment history, down payment and loan to value ratio will all be considered. First time home buyers may qualify for lower interest programs with FHA or VA backing. Bad credit mortgages will carry a higher interest rate than a standard loan.
Colorado Refinance Rates
Refinancing rates in Colorado are very similar to mortgage rates in the area. Rates will be determined by credit worthiness and employment as well as equity in the home and loan type. Lenders often offer special incentives to refinance your home, but these vary and are not a guarantee. Refinance rates may also depend on if you are using the home for bill consolidation or if you are looking for a lump sum payment from the equity. Refinancing the current balance on your mortgage will enable you to secure a lower rate.
Colorado Mortgage Brokers And Lenders
There are many mortgage brokers and lenders located in the state of Colorado. Private firms, credit unions, banks and internet lenders are all authorized to do business in the state. Some lenders will provide special programs, such as first time buyers or for poor credit. Other lenders may offer point purchasing programs to reduce the interest rate.