What to Know About Mortgage Rates in Colorado
Along with selecting a type of loan, you will need to decide on a loan term as well as a format for your mortgage rate. When looking for a home mortgage loan you should know that there are essentially two types: fixed-rate loans and adjustable-rate loans (ARMs).
Fixed-rate mortgages are predictable. You lock in your permanent mortgage rate at the start of the contract, and it does not change for the duration of the loan term.
The interest paid on adjustable-rate loans over the years changes with the market rate. So when rates are low, you pay less each month, but when rates are high, you pay more. ARMs usually begin with a low-rate introductory period which may last several years.
There are variations to suit the specific needs of individuals, which your home mortgage loan consultant will discuss with you in greater detail. Front Range Mortgage will explain the fees involved in buying a home and for such necessary tasks as appraisal, closing and settlement.