Making Moves with Mandee
Everything You Need to Know About Rates, Timing, and Saving Money on Your Colorado Home Loan
Making Moves with Mandee: How Mortgage Rates Really Work—The Buyer’s Guide
Mortgage rates are more than just a number, they can affect your monthly payment, total cost, and even your buying power. But how do they really work, and how can you make the most of rate swings in Colorado’s market? Here’s the scoop:
1. What Determines Your Mortgage Rate?
- Economic Conditions: Rates rise and fall based on national economic trends, inflation, and the Federal Reserve’s moves.
- Personal Factors: Credit score, down payment, loan amount, and type of loan all impact YOUR actual rate.
- Loan Type: Fixed vs. adjustable, government-backed vs. conventional.
2. Fixed vs. Adjustable: What’s the Difference?
- Fixed-rate loans: Your rate never changes; predictable payments for life.
- Adjustable-rate (ARM): Lower initial rates, but they may change after a set period. Good for short-term owners but risky long-term.
3. When Do Rates Change?
Mortgage rates can change daily. Lock your rate as soon as you have an accepted offer, a lock usually lasts 30, 45, or 60 days.
4. How Can You Get a Better Rate?
- Improve your credit score before applying
- Increase your down payment
- Shop lenders, don’t just take the first offer!
5. Rate Shopping Tips
Don’t just look at the rate, ask about fees, points, and total closing costs. Sometimes a lower rate comes with higher fees.
6. Should You “Lock” Your Rate?
Absolutely! Locking secures your rate against market swings. If rates drop after you lock, some lenders offer a “float-down” option.
7. Colorado Market Trends
Rates can be unpredictable, but buyers who follow the market and act quickly can save thousands over the life of their loan.
Bottom Line:
Knowing the ins and outs of mortgage rates sets you up for financial success. Want advice on timing, rate locks, or comparing offers? I'm your guide to navigating these numbers confidently!
