Finding the right Colorado mortgage lender is important for your future home buying experience. At Sierra Pacific Mortgage we offer our prospective clients honest and upfront information in a very timely manner. We’ve built our business on superior customer service while not sacrificing efficiency. We offer low rates and 5-star service on residential home loans, refinance and many other services. Contact us today to find out more.
First time home buying is an exciting new chapter in life. Seasoned home buyers are well prepared for the major investment. It’s key to get the best mortgage for your given situation no matter where you sit on the buying spectrum. For a lot of folks, this process can seem intimidating and overwhelming, but have no fear! Luckily for you, Sierra Pacific Mortgage is a top rated mortgage lender in Colorado with a team of absolute all stars.
You might be wondering, “which type of home loan is best for me?” The answer is dependent on you. When it comes to buying a home, no two home buyers are the same. The decision is best left up to you and your advisor. The truth is, there is a mortgage program that works best for you and we are going to guide you in the right direction with ease and confidence. Our end goal is to provide you a service that allows you to purchase a home affordably.
An adjustable-rate mortgage has a varying interest rate. You may see an abbreviation for this term as ARM. The interest rate on this type of loan is set under market value on a comparable fixed rate loan. As time goes on the rate will gradually rise and if the ARM is held long enough the interest rate will overcome the going rate for fixed rate loans. ARMs have a specified time period where the starting interest rate stays consistent. From this point, the interest rate can fluctuate at a pre-constructed frequency. These are credit lines that are long term with different pay periods. These pay periods are either adjustable or fixed.
Fixed-Rate Mortgages charge a specific set rate interest rate. This remains unchanged in the lifetime of the loan. The principle and interest every month changes from payment to payment, the total amount remains the same. For homeowners, this provides more predictability when budgeting. Fixed-rate mortgages take an edge because the borrower is protected from potential, sometimes dramatic increases in monthly payments should the interest rate change.
Depending on your mortgage term, the total amount of interest you pay is reliant on what is set in the term agreement. Traditionally you will see 20, 30, and 15 year terms which are most common amongst lending institutions. So, which one of these choices do you think is most common?
The most common mortgage among borrowers is the 30-year mortgage. Why is this? Because, the 30-year mortgage offers the lowest monthly payment. In taking this option, you may end up paying higher interest in the long term. The monthly payments for a shorter term mortgage are higher, this way the principle can be paid in a shorter time frame. The benefit of this is your interest rate is lower thus making the short term cost less overall. There is no wrong choice, each option is dependent on your specific needs as a future home owner. Find out more about fixed rate loans here.
What does Refinancing mean? You may have heard this term thrown around amongst others in regards to different financial topics.
Refinancing means you are taking your current mortgage (or lease in some cases) and exchanging it for a new one. As a result, you receive a new balance with a different monthly payment. You may choose to refinance so that you can shorten your mortgage payment term. The advantage of this is you pay less interest over the life of the loan as mentioned above. Another interesting facet to consider, if you have earned equity on your home you may want to turn that into cash by refinancing. There are two types of refinancing: cash-out refinancing and rate and term refinancing.
The decision to refinance is one that should be made so that the end goal is to benefit you in some way. Think about the cost of the refinance to the amount of savings. Researching the best decision to make can be confusing. We are always here to help if you need advice on what the best choice is for you and your family. Find out more about refinancing here.
A mortgage used to finance a property that is more money than a conventional loan. The limit on a conforming loan is $647,200 which is set by the Federal Housing Finance Agency (FHFA). If a home exceeds this amount than your next best option is a jumbo loan. This type of loan is available with an adjustable rate or a fixed interest rate. It is more likely that you will be approved for a jumbo loan if you have ample cash in the bank. Its best practice for a lender to ask the loan borrower to show they have a feasible amount of money in the bank to cover at least one years worth of mortgage payments. Mortgage rates my be higher for a jumbo loan vs a conforming loan – the reason for this depends on your lender and your financial situation. Most lenders can offer competitive rates on jumbo loans that will match conforming loans. Find out more about Jumbo Loans here.
An FHA loan or Federal Housing Administration loan is a type of home mortgage that is provided by the government and issued by a bank or similar type of lender. The beauty of an FHA loan is the smaller down payment than its more traditional counter parts. This type of loan also allows people who have lower credit scores to have an option to buy a home.
The FHA loan is designated for first time home buyers that may be moderate to low-income. This allows them to attain home ownership without having a large down payment. Find out more about FHA loans here.
The VA loan is a mortgage that is available through a program by the U.S. Department of Veteran Affairs (VA). With VA loans, service members, veterans, and their surviving spouses can acquire a home with very little to no down payment. This also allows for no private mortgage insurance and a interest rate that is competitive against the rest of the market. This type of loan will finance up to 100% of the value of the home. So how does this type of loan work exactly? The VAs guarantee protects the lender in that the government will pay out a portion of the VA loan if the borrower can not repay the full amount. This is a type of insurance for the lender which reduces the risk and makes it possible for them to offer better terms with no down payment. Find out more about veteran affairs loans here.
A home ready mortgage is for borrowers with low-to-moderate income but also have good. This type of borrower is searching for a new home that matches the criteria just mentioned. Fannie Mae sponsors this type of loan and is similar to the Home Possible program offered by Freddie Mac. If you’re looking for a Home Ready Loan in Denver Colorado or surrounding areas, Sierra Pacific Mortgage and the Michael Shotnik team are your best choice today. This type of loan is available to repeat and first time home buyers. It is also avaialble to individuals who may be seeking to refinance a pre-exisiting mortgage. To be considered eligible, the borrower should have a credit score of 620 or higher. If your credit score is higher than 680, you are eligible for an even better price! Find out more about home ready loans here.
Are you interested in a reverse mortgage option for your Colorado home? Sierra Pacific Mortgage is your choice and we take pride in walking you through this process like a breeze. To summarize into one word, a reverse mortgage is a loan. This type of loan is for the homeowner that is over the age of 62 and has an over average amount of equity that they can then borrow against the value of their home. The payment you then receive from this are funds in the form of a lump sum. You can also receive this type of loan as a line of credit of fixed monthly payment. The thinking of this type of loan is not like your typical forward mortgage, a reverse mortgage doesn’t require the homeowner to make monthly payments. Find out more about Reverse Mortgages here.
One of the first things we get asked when a borrower comes to us is, “Which loan program do you think I should pick?” The answer depends on a variety of factors in which we cover in different areas here. In short, the following topics help determine the best loan program for you:
The different loan program options have different sets of guidelines and rules that we must follow when helping you acquire exactly what you want. All of these details will go down on your loan application. All of our representatives here at Sierra Pacific Mortgage have the experience and knowledge to help identify the best outcome for your situation.
Have you spoken to a realtor and are ready to purchase a home? Its time to work with the top mortgage lenders in Colorado. Home Loan Experts, fha home loan, Good Credit, Bad Credit, Acceleration Clause, Adjusted Basis, Adjustment Date, Amortization, Affordable Analysis, Amortization Term, Appraisal, Annual Percentage Rate (APR), Asset, Appraised Value, Assignment, Balance Sheet, Balloon Payment, Before Tax income, Bridge Loan, Broker, Buydown, Certificate of eligibility, Cap, Compound Interest, Closing Cost, Change Frequency, Closing, Consumer Report Agency, credit risk score, Deed of trust, Delinquency, Default, Credit Report, Deposit
Our customers should always take into consideration the balance between mortgage rates and lender fees. It is advised but not necessary to pay upfront fees. This way, you can see lower interest rates in your mortgage from the start. A common pattern that you may notice is lenders charging higher upfront fees to lower their advertised interest rates making a more attractive end offer. When considering these different options you should always asses what your end goal is. Paying higher in the beginning can play a role in how long you plan on living in the home as well as the amount of cash you apply toward closing costs once the paperwork is signed. Check out our home buyers guide for more in depth information.
Down Payment, Equity, Effective Gross Income, Discount, Escrow Disbursements, Escrow Payments, FICO Score, GNMA, First Mortgage, Fixed Installment, Growing -Equity Mortgage (GEM), Guarantee Loan, Fully Amortized ARM, Hybrid ARM, HUD-1 statement, Index, Housing Expense Ratio, 2/1 down mortgage, Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM), Installment, Initial Interest Rate, Insured Mortgage, Interest Accrual Rate, Interest Rate Floor, Lifetime Payment Cap, Line of Credit, Lease-Purchase Mortgage Loan, Liabilities – An individuals financial obligations including short term and long term debt. Loan – An amount of money that is returned with an amount of interest, Lock-In Period, Maturity, Non Liquid Asset – Check out our glossary to get familiar with all the jargon -Woohoo!
Michael and Melissa are always a pleasure to work with. They are extremely responsive, professional and work hard to get the best loan for us. I would recommend Colorado Mortgage to anyone. Thank you for another great experience!