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.
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.
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.
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
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