What Mortgage Type is Best for Your Denver Home?

For most people, the mortgage world can be a confusing place but once you understand how it works, you’ll know which one would be best for you. Every mortgage has variables that determine how much a borrower ends up paying. Most people simply want a good deal and not all who want to purchase a home has a 20% down payment socked away in the bank. Mortgage comparisons can be tough and a little knowledge on this can go a long way toward getting the right mortgage at a great price.  There are mortgage options available that require less cash upfront and can help you become a homeowner.

The common type of mortgage that most buyers choose is called a fixed-rate mortgage. As the name suggests, the interest rate on a fixed-rate loan stays the same for the entire term. Fixed rate mortgage terms are usually 15 and 30 years. However, you’ll also find 10, 20, 40, and even 50-year fixed-rate mortgages. One benefit of getting a shorter mortgage is that you pay less total interest over the life of the loan than with a longer one. Many people go for longer mortgages as they reduce the monthly payment, which can make buying a home more affordable.

Another type is the Adjustable-Rate Mortgage that might also be referred to as a variable-rate mortgage. With an adjustable mortgage, the interest rate and your monthly payment can go up or down on a predetermined basis. Most Adjustable rate mortgages are actually both fixed and adjustable. They start off with a fixed-rate for a set amount of time and then convert to an adjustable rate. Since adjustable mortgages are more unpredictable and risky than fixed-rate mortgages, they offer a much lower interest rate in the beginning, which can help a buyer qualify for a more expensive home.

Are you ready to take the next steps towards purchasing your new home? Contact the professionals at the Bandy Team for a no-obligation consultation.  Whether buying or selling a Denver home, if you’re interested in Denver Real Estate , we can show you some terrific homes for sale in Denver.

Our trusted professionals will be there to help you every step of the way!

Until next time,

Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows

DenverHomeSearcher.com

720-466-3790

January Denver Real Estate Market Update

(Based on December 2015 Data)

December was an active month for the housing market in the Denver metro area, with a strong month-over-month increase in sales.

   

Home sales saw a jump in December, with 4,436 homes closing, a month over month increase of 31 percent and year over year increase of two percent.  During the month, 3,174 single family detached sales homes sold and 1,262 condos/townhomes sold. 

“December typically brings a month-over-month increase in residential real estate sales, but this December surprised us with a much higher increase than we’ve seen in previous years,” said Kirby Slunaker, president and CEO of REcolorado. “Home prices have moderated since the second quarter, allowing buyers to jump into a market that is less competitive during the holiday season.”

Denver area home prices held steady in December for the third consecutive month. The average sold price for a single family home in December was $369,568, flat as compared to last month, but still ten percent higher than this time last year.

December ended with 5,501 active listings on the market, a month-over-month decrease of 21 percent; however, a three percent increase as compared to last year. The number of new listings that came on the market slowed as well. During the month, 2,542 new listings came on the market, a seasonal 31 percent month-over-month decrease, but two percent higher than December 2014. 

Months of Inventory fell to approximately five weeks in December, well below the national average. 

The amount of time a Denver area home stayed on the market increased three days in December, bringing the average days on market to 33 days.

Embers from metro Denver's scorching housing market, which cooled late last year, remain hot enough to reignite into another nation-leading performance, some forecasts are predicting.

Activity slowed in the fall, and the market probably won't burn as bright as it did in 2015, a record year. But metro Denver home price gains should remain at the top of the charts nationally for a second year in a row.

Contact the professionals at the Bandy Team for a no-obligation consultation. If you’re interested in Denver Real Estate, we can show you some terrific homes for sale in Denver.

Are you ready to get started finding your dream home? Get metro Denver Property Alerts delivered to your email and be the first to know when new homes fitting your search criteria come on the market.

We are here to help!

Until next time,

Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows

www.365DenverHomes.com

720-466-3790