Today’s expensive Colorado rental market along with historically low interest rates and home prices on the rise makes the benefit of owning a Colorado home quite practical. Whether you are ready to buy tomorrow or need some time to save up a down payment and/or establish credit and a job history, it may be well worth it to give your local Mortgage Broker a call.
Think you cannot afford to enter the home buying market?
According to Zillow, renters in the Denver market use on average 35% of their monthly income on housing, as opposed to homeowners who allocate 21% of their monthly earnings to their mortgage payments. Data shows that it is actually less expensive to own a home vs. rent a home right now in Denver! While these numbers are revealing, we can make our own comparisons as well. For instance, let’s assume that an average three-bedroom apartment in Denver goes for $1,800 a month, which is quite realistic right now. And then suggest you would like to buy a $250,000 home instead write another rent check. An FHA loan requires a minimum of 3.5% down and as well as an upfront mortgage insurance premium (UFMIP) of $4,375. Given a rate of 3.875% for a 30-year loan with insurance of $125, monthly taxes of $150, and monthly mortgage insurance of $170.89, your total monthly mortgage payment would run about $1,600.19* You could potentially save $200 a month while owning a home amidst a potentially appreciating market.
Benefits of home ownership
Buying a house could be one of the best decisions you could make for your financial future. Along with building equity and potentially saving money on rent, you may gain tax advantages by deducting your mortgage insurance from your federal taxes. There is no place like home especially when nobody can raise the rent on you! Colorado Lenders Inc. is a local company with competitive rates, friendly service, and uncompromising integrity. To get started, give us a call at 303-578-9202 and begin your journey towards home ownership.
* Payment assumes an FHA loan with a purchase price of $250,000.00, 3.5% down at a rate of $3.875, and taxes and insurance of $270/monthly. Currently FHA loans carry an upfront cost of 1.75% amounting to $4221.88 and a monthly insurance cost of .85% or $170.89. For the purpose of this example, credit is assumed to be above 680. All loans are subject to an underwriters approval.