CO Home Loan Types

 types of colorado home loans

These types of Colorado Home Loan programs would apply to all areas such as:

types of colorado home loansArvada CO Home Loans | Aurora CO Home Loans | Boulder Co Home Loans | Denver Colorado Home Loans | Aurora CO Home Loans | Ft Carson CO Home Loans | Centennial CO Home Loans | Golden CO Home Loans | Colorado Springs CO Home Loans | Littleton CO Home Loans

          Types of Colorado Home Loans

 

There are several factors to consider when securing a Colorado Home Loan. These types of Colorado Home loans can vary depending on the area and your overall goal. Example, investors may be looking at Colorado Springs Homes or maybe the Denver Area, therefore a 30 year fixed may not be in their best interest. Take a look at these friendly matrix charts to better understand which Colorado Home Loan type might be right for you. 

 

Keys to Understanding

Colorado Home Loan Types colorado home loan types

 

How long will you be in your Home?

Recommended program
1-3 3/1 ARM, 1 year ARM or 6 month ARM
3-5 5/1 ARM
5-7 7/1 ARM
7-10 10/1 ARM, 30 year fixed or 15 year fixed
10+ 30 year fixed or 15 year fixed
 

Colorado Home Loan Programs

Advantages

Disadvantages
Fixed Rate Mortgages

30 year fixed

15 year fixed
  • No fluctuation or payment
  • Secure Payment amount every month
  • FIXED Monthly Payment
  
Adjustable Rate Mortgages10/1 ARM7/1 ARM3/1 ARM1 year ARM6 month ARM

1 month ARM
  • Lower initial monthly payment
  • Lower payment over a shorter period of time
  • Rates and payments may go down if rates improve
  • May qualify for higher loan amounts
  • More risk
  • Payments may change over time
  • Potential for high payments if rates go up
First Time Buyer Programs
  • Lower down payment
  • Easier to qualify
  • Sometimes you may get lower rates
  • May be subject to income and property value limitations
  • Some programs which have government subsidies may have a recapture tax if you sell the house too early.
Stated Income Programs
  • Don’t need to verify income
  • Faster approval
  • Higher rates
  • Higher down payment
No point, No fee Programs
  • No closing costs
  • Less money required to close
  • Higher rates
  • Higher payments
Imperfect Credit Programs
  • Potential for reestablishing credit if you pay your mortgage on time.
  • When used for debt consolidation, you may be able to reduce your monthly debt payment
  • Higher rates
  • Terms may not be as favorable
  • Harder to get long term fixed loans
  • Loans may have prepayment penalties
Home Equity Line of Credit
  • You only borrow what you need
  • Pay interest only on what you borrow
  • Flexible access to funds
  • Interest may be tax deductible
  • Rates can change. The maximum interest rate is normally high.
  • Payments can change
  • Harder to refinance your first mortgage
Home Equity Fixed Loan
  • Fixed payments
  • Interest may be tax deductible
  • Higher interest rates than on 1st mortgages
  • Harder to refinance your first mortgage