Frequently Asked Questions

How long does the mortgage process take?

The mortgage process usually takes from 2-4 weeks but it will go much faster and smoother if you have all your financials ready to go.

Will my loan be an adjustable rate or a fixed rate?

We can get you either an adjustable rate or a fixed rate but we always default to a fixed rate and encourage most buyers to get into a fixed rate loan unless their is special circumstances.

How do i know how much house i can afford?

 Generally speaking, you can purchase a home with a Debt-To-Income Ratio of 41% or less. The DTI ratio is calculated by taking your income coming in every month and factoring it against your liabilities including your mortgage payment, car payment, credit card payment, and anything else that shows up on your credit report. Depending on many factors you can get this ratio to be higher and buy house that costs more. Please contact us and we will help you figure out how much you are pre-qualified for.

What is included in my mortgage payment?

For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. How much cash will i need to purchase a home? We have 100% finaning loan programs!

How do i know which loan program is best for me?

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture your credit score and history, and how long you intend to keep your house. Colorado Mortgage Helper can help you evaluate your choices and help you make the most appropriate decision. With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. Usually, the first few years of an ARM the rate will be fixed but then it will start adjusting afterwards. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

How is an index and margin used in an arm?

An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Where can i search for homes?

Check out these real estate search sites to find Colorado homes for sale and browse the Colorado MLS.

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