Getting Started
In the past Denver mortgage options were limited to 30 year fixed mortgages with 20% down. Today there are many different loan programs to choose from along with options to put less than 20% down on the purchase of your home.
There are several factors to determine which program is best for you, however based on how long you plan to stay in your home and your risk tolerance, there are opportunities that can save you hundreds of dollars on your monthly payments.
Fixed Rate Loan
Advantages
Monthly payments won’t change
- Interest rate fixed
- Protected if rates go up
- Can refinance if rates go down
Disadvantages
- Higher interest rates
- Higher mortgage payments
Rate does not drop if interest rates improve
Home Possible/Home Ready
- Lower down payment
- Easier to qualify
- Sometimes you may get a lower rate
Lower mortgage insurance premiums on loans with less than 20% down
- May be subject to income and property value limitations
Adjustable Rate Mortgages(ARMS)
- 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
Construction Loans
- Whether you currently own the land or intend to purchase and build
- Risk of rates being higher at the end of the initial fixed period
- Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option
Alternative Documentation Programs
- Don’t need to verify income
Don’t need to verify employment
Higher rates
Higher down payment
FHA
- Sample
Sample
VA
- Sample
Sample
Reverse Mortgage
- Sample
Sample
