How Much Will My Mortgage Payment Be In Boulder, CO?

Boulder, Colorado, boasts countless outdoor activities and breathtaking natural beauty thanks to the Rocky Mountains. Eager to start your life in this area? We don’t blame you! This article will help you understand your mortgage payment so you can create a budget for living your dream life in majestic Boulder. 

Remember, for the most accurate calculations, please contact us –your trusted Boulder mortgage broker.

Calculating Your Mortgage In Colorado: Getting Started

Because you’ll be paying back your mortgage loan for many years, it’s critical to know how much it will be so you can determine whether the responsibility is sustainable. 

Using an online mortgage calculator is the fastest and easiest way to calculate your monthly mortgage payment. But if you need to do it manually,  here is the information you need to do it. 

The Mortgage Principal

Your mortgage principal is the initial loan amount you borrow from your lender. For example, a $600,000 home purchased with a 5% down payment ($30,000) means that you need to borrow $570,000 from a lender to complete the purchase. Your mortgage principal, in this example, is $570,000.

The Interest Rate

The interest rate is a fee that lenders charge for financing the loan. The rate is influenced by several factors, one of which is the borrower’s credit score. The better (or higher) the score, the lower the rate. The type of loan can also determine the interest rate. For example, FHA loans come with a fixed interest rate for the entire loan term whereas ARM loans have a variable interest rate.

The Loan Term

If you plan to apply for a conventional loan in Boulder, Colorado, you need to know how long before you fully pay the loan. The usual loan terms are 30 or 15 years but they can vary depending on the lender and type of loan. 

Is PMI Necessary?

PMI is a requirement if the down payment is less than 20%. If your loan includes PMI, know that this fee will be added to your monthly payments. The amount varies, but it is generally it’s between 0.2% to 2% of your mortgage principal.

There are instances where PMI can be removed once a buyer reaches 20% equity on a home.

Remember Property Taxes

Property taxes are often included in monthly mortgage payments. Every month, when you make your mortgage payment, a specified amount will be saved in an escrow account. At the end of the year, the lender will pay your taxes from this account. 

You can find property tax rates on your local government’s website. 

Homeowners Insurance

Insurance policies cover damages and financial loss due to fires, theft, natural disasters, and other unplanned emergencies. This cost is included as part of your monthly mortgage payments made to your lender.

Boulder, CO Mortgage Payment Calculations

For first-time home buyers, calculating monthly mortgage payments can be difficult. You wouldn’t want to jump into a 30-year home loan only to find out that you lack the funds to cover everything. If you want to know what portion of your income will go towards your mortgage payment, you’ll want to consult with a mortgage professional. 

At Castle Rock Mortgage of Colorado, homebuyers can count on the best service from our team. Whether you apply online or contact us for live assistance, you can rest assured that you’ll get all your questions answered.

Give us a call and inquire about our loan products today!

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.