Denver Mortgage Loans
Denver Lender provides Denver Mortgage Loans and Denver Home Equity Loans:
Denver Mortgage Loans are available for refinance and purchase transactions:
Refinance: Getting the right Denver Mortgage Loan is an important part of your refinance transaction. Home loan specialists can assist you by finding the right loan during your refinance
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Purchase: Whether you’re buying your first Denver, Colorado home or moving up to your next home, getting the right Denver Mortgage Loan is an important part of your purchase transaction. Home loan specialists can assist you by finding the right loan during your purchase.
Click Here To Get Started On Your Home Purchase Loan
Denver Home Equity Loans are also available for refinance and purchase transactions but may also be obtained separately:
Home Equity: Whether you’re looking to improve your Denver home or consolidate debt, getting the right Denver Home Equity Loan is an important part of your cash out or debt consolidation transaction. Home loan specialists can assist you by finding the right home equity loan.
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Zero Down Home Loans
Editors Note: Due to the mortgage and credit crunch, zero down home loans are no longer be available. If you’re in need of a Denver, CO mortgage contact us to discuss your mortgage options.
This is a loan where the borrower does not have to put any money down on the home. The borrower can then use their money for closing cost, title fees etc…
80/20 loans are sometimes referred to as Piggyback loans and have the added benefit of not requiring mortgage insurance.
Not all lenders will accept seller-paid closing costs. Some won’t, some will allow up to 3% of the purchase price, and some will allow 6%.
When the seller does agree to pay the closing costs of the loan, they aren’t actually paying for it themselves. They generally raise the purchase price an amount equal to the closing costs. The borrower is still paying it, but it is being added to the loan amount.
In many cases, a borrow can get a home loan with no out of pocket expenses when a seller agrees to pay closing costs. In this scenario, the sales agreement must be specific and state that the seller will pay borrowers closing costs up to a certain percentage or dollar amount. Some lenders only allow seller paid closing costs for non recurring items like one time lender fees. However some lenders allow non recurring and recurring closing costs to be paid by the seller, for example: the borrowers prepaid hazard insurance fees.
There are also purchase loans that will allow buyers to borrower as high as 107% of the value of the home (purchase price or appraisal value - whichever is lower). This will allow the buyer to use the 7% to pay for closing costs and debt consolidation.
If a home buyer has enough money to cover the necessary closing costs associated with the purchase, in other words, he needs only to take out a 100% loan rather than a 103%, 106% loan, he would have more lenders and loan programs to choose from, and better interest rate structure as a result.
There are different types of 100% loans. You can either get 1 loan for 100% or an “80/20″ loan. Speak to your mortgage professional to see which program is best for you!
Why should I refinance?
Many homeowners are using the appreciation in there homes to get rid of high rate credit cards by consolidating. When you consolidate your loans you often reduce the amount of money your spending each month.
One of the main benefits to refinancing is to consolidate consumer debt. Consumer debt (i.e. Credit Cards ampersand Auto Payment) is typically at a higher interest rate and is never tax deductible. Interest paid on debt tied to your home is deducted from your income at the end of the year often substantially reducing your tax liability. This tax favorable status is one of the many benefits of refinancing.
Refinancing your home can save you hundreds per month when you consolidate debt.
What if you want to add on, remodel or update the kitchen? You may not have the cash to do so, but the cost of improvements may be more than covered by the increase in value of the home. This is a great use for a home equity line of credit or a cash-out refinance.
Many people refinance to change from a variable rate to a fixed one or vice versa. Refinancing a high interest rate after a 24 month good payment history could save you a lot of money on your monthly payment.
If planning to purchase investment property, refinancing your primary residence is a great way to raise the cash for the down payment required.
Always consider your long term benefits of doing a refinance. The interest rate is not the most important aspect of the transaction. Even if your current rate is lower, you will probably save more money over time with a debt consolidation refinance then you would be with maintaining the situation you are currently in. Ask yourself a few questions: How long have I had this balance on my cards? At the rate I am paying my credit card debt down, how long will it actually take to pay them completely off? What will be my total cost once I have paid off all my credit card debt?
You can refinance to switch to an interest only loan to maximize cash flow or to switch to a Pay Option ARM to provide yourself with a lot of flexibility in your monthly mortgage payment. Some people also refinance simply to get a way from their current mortgage lender because they are not pleased with them.
Another main benefit of refinancing is to get out of PMI (Private Mortgage Insurance). In most cases if your Loan-To-Value was above 80% when you moved into the home then you most likely got stuck paying PMI. Your home may have appreciated quite substantially over the past year or two and with a new lender they will take new appraised value thus eliminating PMI.
Most people refinance to because of changes in their financial situations. Some, after determining that they can afford a bigger mortgage payment, refinance to a shorter loan term to save on the total amount of interest charges. Others, after experiencing a decrease in income, may refinance to a longer term loan to take advantage of the lower monthly payments. Yet others refinance to withdraw from the equity built in their homes for other financial purposes.
Using equity in your home to pay off high rate loans (credit cards, auto loans, etc.) may have certain tax benefits also. Consult your CPA for more information.
Many homeowners refinance to pull out cash to purchase another property.
To reduce the term or length of your loan, doing so can save you thousands of dollars in interest.
Unlimited Cash-out Refinance
Unlimited cash out HELOC refinancing primary residence and second homes
HELOC stands for Home Equity Line of Credit.
Preferably a job where you can show W2’s and pay stubs.
Higher credit score individual’s can obtain “no-doc” HELOCS or fixed second mortgages.
Many times you can take advantage of a “no cost” HELOC or Fixed rate second. Ask your Loan Officer if this option is available to you.
If you need to borrow money, home equity lines may be one useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax adviser for details.) At the same time, home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this debt, or they may put your home in jeopardy if you cannot qualify for refinancing. And, if you sell your home, most plans require you to pay off your credit line at that time. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more freely. Remember too, there are other ways to borrow money from a lending institution. For example, you may want to explore second mortgage installment loans. Although these plans also place an additional mortgage on your home, second mortgage money usually is loaned in a lump sum, rather than in a series of advances made available by writing checks on an account. Also, second mortgages usually have fixed interest rates and fixed payment amounts
Ask about our special low monthly payment programs for unlimited cash out and debt consolidation refinance. Pay off those high interest bills.
You still need to have a job to qualify.
Is there anything else I can do to help? I understand a cash-out refinance is a difficult decision and I want to thank you for reading the information above. If you would like to continue this conversation than please contact me so you and I can discuss your financial situation. Please read more valuable information and when you feel comfortable I would like you to contact me.
Unlimited cash out’s may also be available as a reduced or no documentation type of program.
Should I refinance
When considering whether or not to refinance your home, you must decide if the refinance will result in a net benefit to you. It is ultimately up to you to decide what is in your best interest, not a loan officer.
If you are simply looking to lower your monthly mortgage payment, you may want to consider what is called a “rate and term” refinance. This simply means that you are refinancing to receive a lower interest rate, and to spread your payments out over a different amount of time. Some people will refinance to change to a 15 year loan, because they want to pay off their mortgage sooner. Most, however, will go with a loan that is amortized over 30 years, because that will result in lower monthly payments.
If you want to eliminate some of your other high interest debt, you can do so by rolling that debt into your current mortgage. This is referred to as a debt consolidation refinance. The benefit of a consolidation refinance is that you can take all of your high interest credit cards, and lower the interest to whatever rate you will be paying on your new mortgage. Also, you have the convenience of only making one payment every month. Consolidating your debt doesn’t actually eliminate it. It simply lumps it all together, and lowers the interest rate that you pay each month.
If you want to cash out some of the equity in your home to make home improvements, take a vacation, buy a new car, or something else, you can. This is called a “cash out” refinance. A responsible loan officer will advise against pulling equity out of your home to reap short term benefits, such as taking a vacation. Although it may be tempting to do so, you will be paying interest on that money, and in the long run you will probably regret it. However, if you want to make home improvements, then you can actually improve the value and beauty of your home by using some of your equity to pay for it. It is important to know that, although the equity in your home is yours, if you cash-out some of it, it isn’t like withdrawing money at the bank. You are taking out a loan against the value of your home. You will pay interest on that loan, and therefore your monthly payments will go up.
Call me today at to discuss whether or not a home refinance may be in your best interest. I’m here to help!
Keep in mind that with any type of refinance, you will also have to pay the closing costs on the new loan, which can be around $5,000 to $6,000 or more. You must determine if it is worth it to you to pay these costs in order to reap the benefit of the refinance. A good loan officer will evaluate your situation as well, to determine whether or not it is in your best interest to refinance. Ultimately, though, the decision is yours, and the loan officer is there to help you no matter what decision you make.
Second Mortgage
A mortgage that has rights subordinate to a first mortgage or in second position.
Many current homeowners use a 2nd mortgage to pay off credit card balances. Interest rates on second mortgages are often lower than that of high interest bearing credit card accounts. Interests paid on second mortgages may also be tax deductible for some homeowners. As always, check with a Certified Public Accountant before taking such deductions.
Unfortunately, some borrowers interpret a payment-reduction consolidation second mortgage as a license to take on more non-mortgage debt. A few years later, they look to consolidate again. If their house has appreciated enough, they may be able to, but sooner or later they run out of equity.
A Second Mortgage uses your home as collateral. Your home equity is the part of your home that you actually own and this is the guarantee for your loan.
Some second mortgage loans may extend for as long as 15 or 20 years; others may require repayment in one year. You will need to discuss the repayment terms with the individual mortgage company and select one that offers terms that best suit your needs. For example, if you need to borrow $20,000 to make repairs on your home, you may not want a loan that requires you to repay the entire amount in one or two years because the monthly payments may be too high
Sometimes referred to as a Junior Loan, Second mortgages in all their varieties can be powerful tools to consolidate debts, make home improvements, or avoid paying mortgage insurance. For more information, contact one of our mortgage professionals today.
Be sure to ask if a no closing cost second mortgage is available to you!
When a borrower cannot qualify for 100% financing with their current credit score, they may be able to qualify using an 80/20 combo. The borrower actually gets two loans, one for 80% of the sales price, and the second mortgage for 20%. This allows the borrower to get into the home at 100% financing with a lower credit score than what is required for 100% one loan.
A 2nd loan, on the same property, that is in a junior lien or subordinate position.
Sometimes a second mortgage is helpful in that it allows a borrower to maximize the cash out available without having to pay private mortgage insurance on one loan with a loan amount over 80% of the home’s value.
If you would like to discuss the advantages and disadvantages of any 80/20 versus a 100% loan, please feel free to contact me. I will be more than happy to run through both scenarios for you, to see which option will benefit you the most.
Usually the 20% loan will have a higher interest rate than the 80% loan. However with the first loan only being 80% loan to value it will generally carry a better interest rate than a 100% loan. If you qualify for a 100% loan and an 80/20 chances are that the 80/20 will have a lower combined monthly payment.
Speak to your mortgage professional to see how getting a second mortgage can save you money every month on your bills.
Second Mortgages are generally available in two varieties, a Fixed Rate Second or a Home Equity Line of Credit or HELOC. A fixed rate second mortgage generally have much higher rates and are for a shorter term 15 to 25 years. A HELOC is also a shorter term but has lower rates that are adjustable and usually tied to PRIME. A HELOC works similarly to other lines of credit or credit cards. You have a total available balance and make payments on the amount of balance you owe. The repayment of a HELOC is also split into two time periods, a draw time, and a repayment time. During the draw period you can use the available equity and pay it back at will and an interest only monthly payment is due on the balance. During the repayment period the remaining balance is fully amortized and a principal and interest payment is made.
To really understand the benefits of these scenarios you will want to contact a mortgage professional and let them evaluate your current situation. You will need to express to them what your goals are for the near and long term future. These are important factors in determining what loan program is right for you.
New Credit Card Minimum Payments
Consumers who have just been paying minimum credit card payments should prepare for an increase. The new regulations for the minimum payments are starting to be felt by many consumers. If you are having trouble making your payments you may want to consider consolidating those debts by refinancing your home.
Credit card payments have been typically between 1.5 - 2% of the balance of the credit card and now the payments are upwards to 4% of the balance of the credit card.
With the minimum payments adjusting how they are its even more reason to consolidate your debt.
Keep in mind the new bankruptcy laws that went into effect October 2005. It will be much harder to just file bankruptcy and eliminate credit card debt. Your best alternative to high credit card payments would be to consolidate them into your mortgage.
You should see a significant change in your credit score for the positive when you pay your credit cards down with a mortgage refinance.
The increase in the credit card minimum payment is generally bad news for consumers who don’t own their own homes, however for homeowners this is an excellent reason to take advantage of the power of their home’s equity and finally consolidate those high interest rate credit cards and car loans and roll them into a 30 or 40 year mortgage, spreading out the payments at a very low rate of interest by comparison, and reducing the total monthly spend for your family in the process. And you’ll be even happier when you speak to your tax professional about how much money this will allow you to potentially deduct on your tax returns!
The new regulations on the minimum credit card payments will have a dramatic affect on many credit card users. People who typically have a payment of around $150, can now expect that payment to be as high as $350.
Under the pressure of federal regulators, banks are starting to announce that they are increasing minimum monthly payments on credit card balances. Obtaining a 2nd mortgage(HELOC, 2nd Trust Deed) can be a valid option to consolidate credit card debt and comes with the added benefit of deducting mortgage interest expenses.
Credit card debts just got harder to deal with. Since the new change in minimum monthly payments went into effect consumers across the board are feeling the pinch. This is one more reason to consolidate and reduce your monthly outgo. Stop paying such high interest rates and free up your cash.
The federal government had nothing but the best of intentions in mind when requiring these new credit card minimum monthly payments. Under the old minimum payment structure, many consumer credit cards with high balances would take 25 years or more to pay off by just making the minimum payment. The amount of interest that the card holder would pay in such a scenario would be astronomical. The one thing the government didn’t fully consider is that making such larger monthly payments will prove very difficult, cash flow wise, for many Americans. If you find that making these higher credit card payments is creating cash flow difficulties for your household, speak with me to see if a debt consolidation refinance might make sense for you situation. What you want to avoid at all costs is falling behind on the credit card payments because once behind it becomes very difficult to get current. This will also lower your credit score making refinancing more difficult and expensive. You can see that it is always better to act before the situation gets out of control.
The average American household with one or more credit cards carries a balance of approx. $9500 dollars. An increase to the minimum monthly payment can impact one’s budget severely. It is wise to seek advice from a mortgage professional if this is the case.
The way things stand now aren’t a whole lot different then before. If you charge your credit card and make the minimum payments its just like taking a 20 year loan.
Interest rates on mortgages are much lower than those on credit cards. The interest on mortgages is also tax deductible which means you save even more when comparing to the interest on credit cards.
Also if you choose to consolidate your bills you typically will have a savings each month and sometimes you can save hundreds of dollars. Now if you take this amount or even a portion of the savings and apply it to the principle of your new loan you can pay that loan down much faster. One extra payment per year can shave almost 10 years off of a 30 year mortgage.
Mortgage Quote
Mortgage quotes can be deceptive. When shopping for a mortgage you may receive different rates from different lenders. Rates change every day, sometimes during the day. The interest rate you qualify for depends on your credit score, the type of loan you want, loan to property value, and other factors. The best mortgage professionals always discuss needs and financial situation before quoting rates.
Remember to look at your payments when asking for a quote. Rate is much less important than the total amount you pay per month for the amount of value the loan creates for you. For some people, that means the monthly savings from debt consolidation e.g. paying off their credit cards, for others that’s the appreciation on home improvement, and if purchasing a new property the improvements in long term net worth and quality of life for you and your family.
A mortgage quote should only be used for a comparison between loan programs. The final rate lock will determine the rate you will receive. Receiving rate quotes without first submitting your entire loan package (income, employment, assets, credit) will only serve to give you a guide as to what the rates are on that day for the most qualified of borrowers. When reviewing rate quotes, pay close attention to the overall cost of the loan as well. Not all quotes are created equally.
When comparing different interest rates quoted by various lenders, it is more important to compare the annual percentage rates (APR). The APR takes into account not only the interest rate of the loan, but also all other lender fees associated with the loan. A mortgage with an interest rate of 0.25% lower does not necessarily mean it is the most inexpensive loan if it requires a huge discount point.
When obtaining quotes from a mortgage broker get them to compare programs using a calculator or spread sheet, primarily one where you can plug in how many months you plan on staying in the property before refinance or selling, where you can see the programs side-by-side, you will be able to determine the higher rate with less closing costs will sometimes benefit you more. This is especially true if you plan on moving in a few years or refinancing soon. Moreover in this case it would be better for you to go with a Hybrid program where the rate is fixed for a certain period then adjusts after that period of time.
It is important that you provide your lender with accurate and up-to-date information when requesting a mortgage quote so as to ensure maximum accuracy. Keep in mind, it is nearly impossible to provide definitive rate quotes unless the necessary income documentation and credit history have been furnished to your lender.
It is vitally important for the consumer to know that Loan Quotes are subject to change without notice, and may be better or worse than the advertised quotes depending on loan amount, lock-in period, loan-to-value ratio, and credit profile. Rates can change up or down several times in one day. Also keep in mind that rates and points will be higher for investment property.
The rate quotes will vary based on the amount of time that you will need the loan locked for. For example if you call for mortgage rates most will give you a rate that is only sufficient for 30 days which you must have your loan closed and/or funded by that date. You may need a longer lock in period for several reasons such as a purchase which may not close for a longer period of time or market conditions may prohibit you from closing in 30 days, all of which may affect your rate.
A mortgage quote consists of many different variables not just the interest rate. The type of loan program is just important because borrowers should plan for the future. Borrowers should look at all the costs associated with getting a loan. A borrower needs these three items when examining a mortgage quote.
The best thing to do if you simply want a rate quote is to provide the lender as much information as possible and have a good understanding of your credit history, be sure you understand that without a lock in agreement that is all you have is a quote.
Understanding that a rate quote is nothing more than a snapshot of a particular programs interest rate is critical for a customer to understand. Many economic factors determine whether interest rates go up or down and lenders will update their rates daily or even multiple times per day. The decision to lock a loan should ultimately be the consumers however your mortgage broker can be extremely valuable in deciding if you should lock now or wait based on industry forecasts.
In most instances, the exact interest rate can not be determined in the first or second contact with the broker. Be sure to ask about any other programs available as well, often borrowers focus too much on rate and not which program is in their long-term financial goals.
Remember your rate is not guaranteed until your broker locks your loan. Your mortgage broker will be able to let you know once the loan is locked and your rate is guaranteed.
Online mortgage quotes are immensely time saving in comparison to getting the quotes through other sources.
Rates once locked only remain so for a specified period of time after which they will once again float with the going market rates for your loan program, and may incur a fee under certain circumstances.
Many borrowers call lenders or search the internet for a rate quote when they are in the market for a mortgage. A borrower must understand however that, until they are approved by an underwriter for their loan and the loan is locked by the lender, the rate is never guaranteed. Many borrowers become upset at loan officers who tell them that they cannot quote a guaranteed rate in the early going. The fact is that such a loan officer may be more honest and better to deal with than one who leads a borrower to believe they are guaranteed to get a certain rate from the outset.
One thing to avoid are rates quoted in newspaper advertisements. Rates change daily and the rate that you see advertised may not be what the actual rate is.
Although I am frequently asked by borrowers “what will my interest rate be” when I am pre qualifying a loan I never will quote a rate. I will respond by saying one of the following:1) Rate will be determined by the lender after they have pre qualified the loan by reviewing your credit and application.2) Rates change daily. Since it takes at least 24 hours to get a completed pre qualification from the lender I could not possibly know what tomorrow’s rates will be.
Always remember your rate can vary until locked.
Late payment on one credit card affects all
Consumers beware! Most people know that paying your credit card bill past the due date will affect the interest rate on your card. The more times you pay late the higher your interest rate will climb until it reaches the legal maximum. But what many consumers are not aware of is that if you have several credit cards that are related to or affiliated with the same parent company, when you are late on a payment to one card it will affect the interest rate on ALL your cards.
If you must be late on payment, don’t let it be your mortgage. Next, if you must choose which credit payments to be late on, it is best to have the fewest number of late payments. So, it would be better to be late on a $200 credit card payment than late on two credit card payments totaling $200, such as a $120 payment and a $80 payment.
If you have a good history of being on time with your payments your credit card company may forgive a single late payment by not reporting it to the Credit Bureaus. This is entirely optional, so don’t expect to be forgiven subsequent late payments.
Making late payments on credit cards should be avoided at almost all costs. The mistake many homeowners make is waiting too long after credit card balances get out of hand before taking action. The late payments of course have a very negative effect on the cardholders credit score which could make any future refinance or debt consolidation efforts either more difficult or most costly.
Since the minimum payment on credit cards will rise very shortly, it is important that you read the back page of your bill. This will disclose its late payment policy and the affiliated cards that a late payment will affect.
If you are 30 days late on any payment this will affect your credit score and it can adversely affect the interest rate that you get if you are trying to purchase or refinance.
The payment has to be a full 30 days late. A 30 day late on a consumer debt is damaging to your credit. However a 30 day late on a mortgage payment can be even worse.
Other sites: Mortgage Broker | Selling your home with a real estate agent | Reasons Loan Applications Are Rejected | Delinquency | Reduced Documentation Loans | Closing Costs | FSBO| Pay Option Arm Calculator
Interest
A fee charged for the use of money.
In addition to your credit and loan-to-value, interest rates also depend on the type of loan, the term of the loan and type of documentation provided.
A certain amount of money which can be written off your first year as a home owner.
A fee that a lender charges
A tax advisor can assist you to determine how much mortgage interest you may deduct from your taxes.
In terms of mortgages, the interest rate you pay on a loan will be proportional to the risk the lender assumes by loaning you their money. So, if you have a low credit score, low income, and are requesting a large loan amount relative to the value of the house, a lender will consider these factors to increase the risk of you defaulting on the loan. Therefore, the lender will raise your interest rate to counter the added risk.
Another way to look at interest is the cost of borrowing money.
It is a common misconception that the interest rate is the largest single factor to be considered in getting a mortgage loan. When analyzing the best option for you, remember to keep in mind that reducing your overall monthly spending through debt consolidation refinancing can save you substantially more money and put more cash in your pocket than reducing the interest rate on your mortgage alone.