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All Things Mortgage to Consider for Your Lakewood Real Estate Search

June 29, 2016

Whether you are a first time homebuyer, or you have owned a few homes, how much do you know about mortgages? As you look for Lakewood homes for sale, or other houses in the area, it is best to have a little bit of knowledge as when you go to your real estate agent to get started.
  1. Fixed Rate Mortgages: When you have the option to get a fixed rate mortgage, this means your interest rate will stay the same for the entire time you have the loan. This option is one of the most popular options amongst homebuyers. The great aspect of this loan is stability. You will know exactly what you are getting into and your interest rate will never change. Plus, if you are able, years after you purchase you can work with your lender to see if you can refinance at a lower rate.
  2. Adjustable Rate Mortgages: A little less popular than fixed rates, the adjustable rate mortgage (known as “ARMs”) begin at a lower rate for a beginning time period and gradually goes up each year, or every few years, of the loan. This type of loan may be a good option for someone who may not plan on staying in a home for a long period of time to take advantage of a lower rate than they may get if they choose fixed. However, that risk is always there for the rate to increase. Sometimes there are caps that are put into place on these types of loan to put a number that your interest rate will never exceed.
  3. Hybrid Adjustable Rate Mortgage: Wanting the best of both worlds in your search for Lakewood real estate? Consider a Hybrid adjustable rate mortgage. With these types of loans, the buyer can start their mortgage off with a fixed interest rate. This rate will be available for a certain amount of time such as three to five years, and then will convert over to an adjustable rate mortgage. This is a great option to purchase a house and save money that they may not have saved from a traditional fixed rate mortgage.
  4. FHA Loans: FHA stands for Federal Housing Administration. They provide mortgages to people that have lower interest rates. This type of loan is great for someone that is trying to rebuild his or her credit and/or does not have a lot of money to put down. Sometimes, depending on your situation, you can obtain an FHA loan with only 3.5 percent to five percent down. Wondering how your credit is doing? You can get a free credit report on Credit Karma’s website.
Are you ready to buy a home in the Denver area? Colorado Home Sales can help! We’ll help you with every step of the way and keep you on track with all the things you need to consider with a new home. Plus, we can answer any of your questions in regards to mortgages. When you are ready to get the process started, give us a call at 720-220-2059 or search our properties!

Note: The link to the website wasn’t quite working—so when you post this, you may need to update my call-to-action link at the end.