fa fa-chevron-left Press Release

Top Mortgage Broker in Denver Shares About Interest Rates Friday, October 28th, 5:00 PM
Will Higher Interest Rates Make it Easier to Become a Homeowner

Denver, United States - October 28, 2022 / Front Range Mortgage /

Between December of last year and this past April, the 30-year fixed rate rose from 2% from 2.875% to 4.875%.  That’s a huge jump when you consider how that additional 2% will impact a person’s monthly mortgage payment.  Basically, that equates to another $400 being added to your monthly payment on a $500,000 home with a 20% down payment.  While this could be a huge increase for many individuals, there may be a “silver lining” where all of this is concerned.  Consider the following:

 

Higher Demand, Lower Housing Inventory

Roughly 70,000 new residents move to Colorado on an annual basis.  However, 2021 saw only 26,636 new home permits pulled, which means there were too many new residents for the number of new homes being built.  Interestingly enough, based on what was recently published in the Denver Post, Colorado ranks in the top 10 states for new permits pulled compared to the population.

Investment property, primary residences, and second homes – there are criteria in the mortgage world that apply to loans based on their intended use.  It can either be an investment property, a primary residence, or a second home.  So why would a seller be more interested in selling to an investor rather than a private individual? Because the investor usually makes a better offer. Investors typically have deeper pockets and often pay with cash.  On the other hand, primary residence buyers are often first-time home buyers that have special situations to contend with such as lower credit scores or are using a co-borrower.  For the lender, these factors may look worse compared to an investor that is a cash buyer with deeper pockets and who can close the deal quickly.

More investors are competing for properties – another factor to consider if you have been following Colorado’s housing market is that investors are purchasing real estate for their portfolios in the hopes of generating significant returns.  This means that corporations, individual investors, and REIT’s (Real Estate Investment Trusts) have been sinking money into Colorado’s housing market and are expecting high returns on their investment properties and the rents they generate.

Buy or Refinance in Denver Colorado

The reality is that investors are going to be increasingly more selective regarding the homes they purchase.  Furthermore, fewer people will be purchasing second homes.  Eventually, supply and demand will shift with the primary residence buyer getting the best interest rates and having more options to choose from.  For more information about becoming a homeowner, call Front Range Mortgage at (303) 500-1900 today. They will help you select the right mortgage for your financial situation. Call them now!

Contact Information:

Front Range Mortgage

600 17th St #2800
Denver, CO 80903
United States

Brian Murphy
(303) 500-1900
https://www.frontrangemortgage.com/

Original Source: https://www.frontrangemortgage.com/interest-rates-make-it-easier-to-become-a-homeowner/

Terms & Conditions Privacy Policy

© {{ new Date().getFullYear() }} Archive Place.