#MORTGAGE RATES COLORADO CALCULATOR HOW TO#

Generally, the shorter the fixed term, the lower the introductory interest rate when it comes to ARMs. If you’re only looking to own your home for a short time or conventional mortgage interest rates are high, then an ARM may be a good option. Afterward, you’ll enter an adjustable-rate period for the remaining duration of the loan.ĪRM interest rates are usually lower than conventional fixed rates. What is an adjustable-rate mortgage (ARM)?Īn ARM is a type of mortgage where you pay a fixed rate during an initial phase. Additionally, interest rates on 15-year mortgages are usually lower than 30-year mortgage rates. But because you’ll be paying off the loan sooner, you’ll typically save money on interest over the life of the loan. As a result, your monthly payments will be higher.

15-year fixed-rate mortgage: This home loan functions the same way as the 30-year fixed-rate mortgage but for half the term.

This is because you’re paying off your loan over a more extended period - in this case, 360 months.

30-year fixed-rate mortgage: This is a stable, long-term home loan that typically provides the advantage of lower monthly payments compared to a shorter term.

A 15-year, fixed-rate mortgage is another option for borrowers - here is how the two compare: The most common type of mortgage is a fixed-rate mortgage, with roughly 90% of borrowers choosing a 30-year term. See more: Best mortgage lenders Fixed-rate mortgages This is also a huge increase from last December's 5.14%. The average APR of a 15-year, fixed-rate mortgage is 6.58% - down from 7.24% the month before.

This is down from 8.07% the month prior and significantly higher than the 5.8% rate we saw at the end of 2022.

#MORTGAGE RATES COLORADO CALCULATOR HOW TO#

Here are the current mortgage rates as well as how to get the best rate and deal when you’re ready to shop for a mortgage.Īs of December 13, the average annual percentage rate (APR) for a 30-year fixed mortgage is 7.37%. However, there are ways you can get better rates. Lenders base mortgage interest rates on the benchmark interest rate, along with other factors such as credit score, loan-to-value (LTV) ratio, size of the loan, type of loan and loan term.

Mortgage rates colorado calculator