What Do You Need To Ask Yourself For Getting Lower Colorado Mortgage Rates?

Paying Colorado mortgage rates for buying a home is a big financial decision, so it is best to prepare it carefully. Ask yourself the following questions, seek for professional answers and all these will help you get affordable rates.

  1. What type of mortgage should I get?

Fixed-rate mortgages and adjustable-rate mortgages work differently and they both come with advantages and disadvantages. Inform yourself about them and make sure you are comfortable with your choice

  1. How much should I put down?

Some lenders accept down payments as low as 5% however, you should consider saving and paying at least 20%, in order to avoid paying for private mortgage insurance too.

  1. Which are the benefits for paying for points?

Points are upfront fees, representing 1% of the mortgage; a point will lower the ongoing interest rate by a fixed percent, so yes, it makes sense to pay for it especially if you take a loan for a long period.

  1. Am I eligible for any special programs?

There are special programs for veterans or active military (VA loans), programs that require only 3.5% down (FHA loans), making them particularly popular among first-time buyers, programs offering affordable Colorado mortgage rates for people living in rural areas (USDA loans) etc.