Colorado Mortgage Calculator | the ascent
Colorado Housing Market 2022
According to the Colorado Association of Realtors, the median for a single-family home in Colorado topped $500,000 for the first time in April 2021. Due to increased housing demand and a lack of inventory, the market is expected to get a double-digit appreciation. also for 2022.
Colorado’s housing market jumped 23.5% year over year, with the average Colorado home price hitting $558,210. At the same time, the number of homes for sale fell by 20.1%. With 64.5% of homes sold in Colorado above list price, the Colorado housing market is expected to remain competitive.
According to Realtor.com’s 2022 real estate forecast, Colorado Springs is ranked #14 and Denver is ranked #48 for the nation’s top real estate market. Housing supply is at a historic low and prices are expected to continue to rise this year.
How do I calculate my mortgage payment?
We recommend using a mortgage calculator for Colorado. The formula to calculate by hand is quite complex:
Colorado mortgage rates are still at historic lows, even with recent rate hikes. To estimate your monthly mortgage payment, you will need to enter your estimated mortgage amount, the term of your loan, and the rate you think you qualify for. Common mortgage terms are 15 and 30 year mortgages. In addition, you can choose a fixed interest rate for the duration of your loan or an adjustable rate that changes over time depending on market conditions.
In addition to principal and interest, you will need to add monthly insurance fees, taxes and other charges. Our Colorado Mortgage Calculator also lets you add taxes and insurance to your monthly payment. The mortgage calculator for Colorado also has an option to enter your down payment amount. The more you invest, the less you will need to borrow and your monthly mortgage costs will be lower.
What other monthly fees do I have to pay?
There are other monthly expenses you will need to consider, such as home insurance and property taxes. When using our Colorado mortgage calculator, remember that property taxes paid as a percentage of owner-occupied homes average 0.56%. Property taxes may change depending on your county.
Homeowners can also be part of a homeowners association (HOA) and must pay a monthly HOA fee in addition to their mortgage payment. HOA fees typically cover maintenance of common areas and often include services such as garbage removal. To enter these additional costs into the Colorado Mortgage Calculator above, simply click on “Additional Entries” (under “Mortgage Type”).
You may also need to consider private mortgage insurance (PMI). Homeowners will have to pay PMI if they don’t put down at least a 20% down payment on their home. With all of these potential costs, it’s worth using our Colorado home loan calculator. Our tool will help you break down your costs so you can see what your monthly mortgage payments will look like under different scenarios.
If you’re looking to refinance an existing mortgage, our Colorado mortgage calculator can also help you figure out your monthly payment — and you can check out our list of top refinance lenders to start that process.
What to know before buying a home in Colorado
Before buying a home in Colorado, it’s important to make sure you’ve budgeted for a home purchase and that your finances are in order. To get the most competitive mortgage rates, you’ll need:
Colorado has a diverse geography
From the rugged mountains of Colorado to the desert in the eastern part of the state, Colorado is considered one of the best places to live. According to the US News and World Report 2022, Boulder, CO is ranked as the best place to live in the country. Colorado Springs, Denver and Fort Collins also ranked among the top 17 places to live.
Colorado offers a wide variety of outdoor activities
Colorado is full of things to do outdoors, and the state is home to some beautiful mountains. Due to the high altitude in parts of Colorado, it is important to adapt to the high altitude slowly to prevent altitude sickness. Colorado is also home to common natural disasters such as wildfires, floods, winter storms, tornadoes, and droughts.
Learn more: Homebuyer’s Checklist
Tips for First Time Home Buyers in Colorado
The Colorado Housing and Finance Authority (CHFA) offers a number of programs to help low- and middle-income families afford a home. Through its network of participating lenders statewide, CHFA offers a variety of loan programs for home purchase, grants and second mortgages for down payment and/or assistance with closing costs.
Loans and programs for home ownership
In addition to Colorado homeownership programs, there are other programs to consider. Here are the most common.
- FHA loans are mortgages repaid by the Federal Housing Authority and require a 3.5% down payment
- VA loans are for the military and require a 0% down payment
- USDA loans are government guaranteed loans for qualifying properties and require a 0% down payment
- Fannie Mae and Freddie Mac are conventional loans that require a 3% down payment
Read more: Best mortgage lenders for first-time home buyers
Still have questions ?
Here are some other questions we answered: