What Mortgage Should I Get?

​

You may have asked yourself which mortgage is right for me or found yourself on a mortgage calculator and found an idea of how much house you can afford, but still aren't sure which mortgage loan is best. There is no one-size-fits-all answer to which is the best, as the best home loan for you will depend on your specific financial situation, needs, and preferences. Here are some common types of home loans to consider in Castle Rock or greater Denver Colorado:

 

• Fixed-rate mortgage: A fixed-rate mortgage offers a fixed interest rate for the life of the loan, typically 15 or 30 years. This can provide stability and predictability in your monthly payments, but the interest rate may be higher than other loan types. These loans are not backed by the government. They typically require a down payment of at least 3%.

 

• Adjustable-rate mortgage (ARM): An ARM offers a lower initial interest rate that can adjust up or down after a set period of time. This type of loan can be a good option if you plan to sell or refinance before the rate adjusts, but the interest rate and monthly payments can be unpredictable.

 

• FHA loan: An FHA loan is a mortgage that is insured by the Federal Housing Administration, and it can be a good option for first-time homebuyers or those with lower credit scores. FHA loans typically require a lower down payment and may have more flexible credit requirements than other loans, but they also require mortgage insurance premiums.

 

• VA loan: A VA loan is a mortgage that is guaranteed by the U.S. Department of Veterans Affairs and is available to eligible veterans, active-duty service members, and surviving spouses. VA loans may offer lower interest rates and require no down payment, but they also have eligibility requirements and may require a funding fee.

 

• USDA loan: A USDA loan is a mortgage that is guaranteed by the U.S. Department of Agriculture and is available to eligible homebuyers in rural areas. USDA loans typically require no down payment and may offer lower interest rates, but they also have eligibility requirements and may have income limits.

 

• Jumbo loan/ Super Jumbo loan: A jumbo loan is a mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). The conforming loan limits vary depending on the location of the property, but they are typically around $726,525 in most parts of Colorado. Jumbo loans are typically used for high-end properties, such as luxury homes or properties.

 

• Temporary Rate Buydown/ Permanent Rate Buydown: A rate buydown is a type of mortgage financing arrangement in which the borrower pays additional upfront fees to reduce the interest rate on their mortgage loan for a certain period of time or permanently.