Available Deals For Colorado Fixed Rates Mortgages
Colorado fixed rates mortgages can be acquired in two main terms: 30 or 15 year loans
. Different borrowers may wonder which of these loans would better serve them. The answer to such a question will hinge on personal finances as well as the amount of time needed to pay off the loan.
It is fairly well known a 15 year loan would be paid in half the duration as a 30 year loan. Those that would prefer to own their own home outright in as fast a timeframe as possible would be better served with the 15 year mortgage. This may prove to be the best option of all.
Be mindful of the fact that the monthly payments on a 15 year loan will be higher. Anyone wishing to maintain a monthly cash flow that was more secure would be best served looking toward a 30 year mortgage. Once again, the timeframe required to pay off the loan would be lengthier and, to a great degree, the final cost on the home would be higher.
For what reason is this so? If you need to take twice as much time to pay off the balance of the mortgage, the interest on the home would continue to increase. This is true even though the APR on a 15 year mortgage might be higher. Again, the duration is less and the final total amount of the cost of the home ends up being higher. This is not to infer one loan term is better than the other. Rather, it simply points out their differences.
What happens to those borrowers that sign on to a 15 year mortgage and feel the duration is too brief for their financial situation? If personal finances have changed and you need a better loan term, a 15 year mortgage may turn out to be a weaker choice. Regardless of what makes the 15 year mortgage problematic, you need to take the appropriate action to deal with it. That means you should explore options to refinance the loan. A 30 year mortgage can be converted into a 30 year one which may be the best solution to follow.
As you can see, there are benefits to both 15 year or a 30 year Colorado fixed rate mortgages. The key here is to determine which of these loans would better serve your individual situation and then apply for the appropriate mortgage.