Managing Your Mortgage

Did you know that at least 35.8% of homes are owner-occupied with a mortgage? This study was from 2013, so we’re presuming the numbers may be even higher at this point. 32% of housing is renter-occupied, and 19.9% is owner-occupied without a mortgage. This means that the two most popular options are to either rent and pay money for something you don’t own, or take out a 30-year mortgage and invest in a Colorado Springs home that you own.

Thursday, October 19th is Get Smart About Credit Day, so we wanted to share some interesting facts about mortgages with you to help you become better prepared for buying a Colorado Springs home, while also realizing that buying really is the way to go.

Types Of Mortgages

As with all types of loans, there are different forms of common mortgages that you will need to think about before you get it. Here are three types of mortgages and a short description about them.

30-year Fixed

A 30-year fixed is one of the most popular mortgage types. The basic description is that the borrower will pay a “fixed” interest rate for the next 30 years. It is chosen by many because homeowners will pay the exact same amount every month. If you buy when the interest is low, you’ll definitely want to consider this option, especially if you suspect that interest rates are on the rise.

15-Year Fixed

The advantage to these mortgages is that they carry a lower interest rate, and of course, only take 15 years to pay off. If you want to pay off your mortgage and build equity quickly, this could be the best choice for you.

Adjustable Rate Mortgages (ARM)

This is a mortgage type where the interest rates on adjustable mortgages are adjusted at predetermined intervals to reflect the current market. Some mortgages can be a combination of fixed and adjustable. For example, the first three, five, or seven years, the rate will stay fixed, and then be adjusted annually for the duration of the loan. This could be a great option if you plan on living in your home for approximately the same length of time as the original fixed term.

The Structure of a Mortgage

The basis of a mortgage is that you’ll pay the principal, interest, taxes, and insurance. These are commonly referred to as PITI. There are some cases where you can take out a mortgage without your taxes and insurance included, but that will generally only apply if you are not considered a high-risk borrower.

Colorado Springs Real Estate

If you’ve been considering buying a home in Colorado Springs, there is no time like the present. While you may hear many real estate agents claim that, it really is something to take to heart. The real estate market is always changing and ever evolving. At the drop of a hat, the interest rates could go up, or they may not be any homes left on the market. With this taken into consideration and the realization that you are investing in property that belongs to you - buying is always considered a wiser choice compared to renting. Are you ready to get started? We can suggest many reputable mortgage companies in Colorado Springs, as well as help you with the best real estate service in Colorado Springs.


Mike MacGuire
Colorado Springs Real Estate Agent
The MacGuire Team
6760 Corporate Dr
Ste 300
Colorado Springs, CO 80919

719-536-4324 or 719-660-6793
Mike@BuyWithMike.com
Location: Colorado Springs, CO, USA

Comments

Post a Comment

Popular posts from this blog

The MacGuire Team & US Military

Image
Memorial Day is one day out of the year where we remember the men and women who have died for our country in the military. The MacGuire Team wants you to know that we also remember our military who are currently serving and their family. Because of this, we have provided the #1 Military Relocation Service in Colorado Springs . Moving can be stressful enough without having to add in other stressors like fast turn around times and another spouse who is left to handle everything. Here are just a few ways The MacGuire Team can make it easier with our  military relocation service . Colorado Springs Military Relocation Service Military families have special needs when they move. Distances are vast and time is of the essence. The MacGuire team understands that the 10-day window before reporting for duty at the new assignment is crucial to your relocation. Often, one spouse has the responsibility to choose a new home for the entire family. Or when selling, the remaining spouse must deal w
Read more

Mike McGuire's Real Estate Selling Strategy

Image
When selling your home, there are several ways you can accomplish it - but there are some ways that are better than others. When you hire the best real estate agent in Colorado Springs we use our 25 years of experience to not just sell your home, but to sell your home at the highest price possible in the shortest amount of time. Selling your home can be an overwhelming process, but our team is ready to assist you with ALL of the details. We have a very specific selling strategy that can give us the ability to make the most of your unique selling situation and sell your home as fast as possible. Here is how we accomplish this: Condition There are a few factors that go into selling your home: condition and price. The real estate market controls the price, but you can control the condition. Our team of agents can help you prepare your property for the market with advice that is time-tested. Our comprehensive listing enhancement services provide you with professional home stagi
Read more

Real Estate: We are NOT the Only Ones Saying You Should Buy

Image
By KCM Crew We have never hid our belief in homeownership. That does not mean we think EVERYONE should run out and buy a house. However, if a person or family is ready , willing and able to purchase a home, we believe that owning is much better than renting. And we believe that now is a great time to buy. We are not the only ones that think owning has massive benefits or that now is a sensational time to plunge into owning your own home.  Here are a few others: Benefits of Owning Joint Center for Housing Studies, Harvard University “Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord…Having to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings.” The Federal Reserve “Renters have much lower median and mean net worth than homeowners in any survey year.” Benefits of Buying Now Trulia “Buying costs less than renting in all 100 large U.S. metr
Read more