First Time Buyers and Colorado Fixed Rates Mortgages

gcejm1 — Tue, 27 Jul 2010 01:42:15 +0000

There has never been a better time to look for a mortgage loan, especially for first time home buyers. Recent government stimulus initiatives have really added incentives for buying a home, both with tax credits and with the lowest rates in 40 years. At these rates, your best option is Colorado fixed rates mortgages. These historic low rates will be locked in for the life of the mortgage.

A fixed rate mortgage keeps the same rate for the duration of the mortgage. The conventional loan is for 30 years, but if you want to pay it off sooner and increase your monthly payment, you can also find a 15 year fixed rate mortgage. This enables you to build equity faster, and avoid paying thousands of dollars in interest over the life of the loan. Which scenario is right for you? That depends on how long you intend to stay in the house, what you can afford to pay monthly, and your overall financial picture. The best thing to do is to consult a mortgage professional for advice concerning the loan that fits your financial situation.

An adjustable rate mortgage may seem attractive with a low rate now, but you need to know what the top rate could be for you in the future. With rates at all time lows, most people prefer the security of a locked in fixed rate. It is important to find out what fees will be charged at closing, and if your rate is adjustable, what index the increase will be tied to. You’ll also want to know with an adjustable mortgage what the cap rate, or the highest rate allowable, will be.

You can do some internet research to compare sample rates for Colorado fixed rates mortgages. Some of the best sites to get this information are erate.come or mortgageloan.com, and Bankrate.com. Educating yourself, understanding the terms of your loan, and working with a qualified mortgage professional will result in you closing on the home of your dreams, with the best monthly payment possible, and a great start on your financial future. With low mortgage rates, tax incentives, and great buys on houses, there has never been a better time to become a home owner!