Colorado Mortgage Rates: Mortgage Rates in Colorado Stable After Recent Hikes
January 24, 2011 (FreeRateUpdate.com) – Mortgages rates in Colorado were up at the start of the week. Colorado mortgage rates were 0.125 percent higher than last week’s rates. A 30-year fixed rate conforming mortgage in Colorado has a mortgage rate of 4.625 percent. A 15-year fixed rate conforming mortgage has a rate of 4.000 percent. A Colorado 5/1 adjustable rate mortgage, the mortgage rate is 3.125 percent. Those Colorado borrowers who exceed the qualification standards can expect to obtain a home mortgage loan at these low mortgage rates with only 0.7 to 1.0 origination points.
In Colorado, the FHA home mortgage rate also experienced a slight increase at the start of the week. The FHA mortgage rate is 4.500 percent for a Colorado 30-year fixed rate FHA mortgage loan, which is 0.125 percent higher than last week’s mortgage rate. The FHA mortgage rate is 4.000 percent for a Colorado 15-year fixed rate FHA mortgage, which increased 0.250 percent over last week’s mortgage rate. An FHA 5/1 adjustable rate mortgage loan is currently at 3.000 percent, which is the same as last week’s mortgage rate. Despite recent increases in the Colorado FHA mortgage rate, an FHA mortgage loan is still a popular option amongst Colorado borrowers. FHA loans have more favorable terms than conforming mortgage rates. The tradeoff, however, is the higher closing costs associated with an FHA loan. Additional fees that the Federal Housing Administration charges to Colorado borrowers include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Well-qualified borrowers would have a very strong credit history with minimal missed and/or late payments, a credit score of at least 580 (sometimes upwards of 620,) extremely reliable income sources, and enough financial reserves to cover a down payment of a minimum of 10 percent, which is usually verified by bank statements provided by Colorado borrowers. The Federal Housing Administration is historically known to have less stringent standards. However, due to recent circumstances, the Federal Housing Administration has tightened underwriting standards and to qualify for an FHA mortgage more closely resembles the standards of conforming mortgage loans.
Colorado jumbo mortgage rates have remained steady this week compared to last week. A 30-year Colorado jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year Colorado jumbo mortgage has a mortgage rate of 4.750 percent. For a Colorado 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a majority of the United States, the limit is $417,000 for average areas and $729,750 for higher cost areas, such as New York City and Los Angeles. The state of Colorado is well known for its breath-taking scenery and thrilling ski-resorts. As such, a majority of Colorado counties fall into the higher cost area category. Resort areas such as Aspen, Vail, and Summit County. Mortgage loans that exceed the conforming loan limit are jumbo mortgages.
Due to the decrease in home construction throughout the state of Colorado, the mortgage rates experienced a slight bump at the beginning of this week. Homebuilders, therefore, have a slightly pessimistic outlook of the future of construction in years to come. Also, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. Hence, when prices of mortgage backed securities dip, then Colorado mortgage rates increase. The result being that as home construction continues to struggle and MBS prices decline, Colorado mortgage rates are not expected to fall in the near future.
Colorado mortgage rates
Colorado jumbo mortgage rates have remained steady this week compared to last week. A 30-year Colorado jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year Colorado jumbo mortgage has a mortgage rate of 4.750 percent. For a Colorado 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a majority of the United States, the limit is $417,000 for average areas and $729,750 for higher cost areas, such as New York City and Los Angeles. The state of Colorado is well known for its breath-taking scenery and thrilling ski-resorts. As such, a majority of Colorado counties fall into the higher cost area category. Resort areas such as Aspen, Vail, and Summit County. Mortgage loans that exceed the conforming loan limit are jumbo mortgages.
Due to the decrease in home construction throughout the state of Colorado, the mortgage rates experienced a slight bump at the beginning of this week. Homebuilders, therefore, have a slightly pessimistic outlook of the future of construction in years to come. Also, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. Hence, when prices of mortgage backed securities dip, then Colorado mortgage rates increase. The result being that as home construction continues to struggle and MBS prices decline, Colorado mortgage rates are not expected to fall in the near future.
Colorado mortgage rates