Colorado mortgage loans is committed to helping you find the right mortgage product for your needs in Fort Collins. We understand that every borrower is different, and we off a varity of products to meet your individual requirements. We make the process of securing a mortgage simple and straightforward by offering you the latest in financial tools that enable you to make sound financial choices.
This mortgage rate quote form will take approximately 60 seconds to complete. Here's how our service works:
1. Complete our short form below
2. We will search hundreds of mortgage lenders and thousands of loan programs in our database
3. You will then receive quotes from up to 4 competitive lenders in your state
4. You choose the mortgage lender with the best rate and loan terms and save money!
-->
Our fast Mortgage application will help you find the perfect lender. It takes only one minute
This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
Because the new bankruptcy laws go into effect on October 17,
2005, more Americans than ever are filing for relief using the
federal bankruptcy laws. The vast majority are simply
overextended and cannot possibly repay the obligations they have
open.
However, for many filers, the opportunity of homeownership may
be possible immediately after discharge. Ironically, some those
that would not previously qualify for a mortgage do qualify
after a bankruptcy.
How is that possible? An example of this is Dave Olson (a
fictional character). He earns $4,000 per month, spends $1,000
on rent,$250 on car payments, and $2,000 on credit card minimum
payments. The DTI* (debt-to-income) ratio of this person is
81.25%. Since his credit score is low (600 middle FICO), the
only option is a mortgage that requires full documentation. Most
of those loans require a DTI of 50-55% maximum.
The Chapter 7 bankruptcy is filed and Dave gets a discharge. He
reaffirms his auto loan and still rents for $1,000/month.
However, now his monthly debt is much lower
(($1,000+250)/4,000=31.25%).
The bankruptcy has actually increased his chances of obtaining
financing for a purchase. Many times, the credit score is the
same after the bankruptcy as prior to filing (unless creditors
report incorrectly). By filing simple dispute letters with the
three credit bureaus, those discrepencies can be cleared up
within a few months.
It makes sense that borrowers are most ready to borrow for home
purchases after bankruptcy because they cannot file Chapter 7
for 6 years, their obligations are lowered, and the property
being purchased is secured. That means the lender can repossess
the property if payments are not made timely.
There are some things to keep in mind if you are purchasing a
home after a recently discharged bankruptcy.
1) A downpayment isn't always necessary, but it will improve the
rate.
2) Most people opt for an Adustable Rate Mortgage (ARM) since
the rates are much lower than a fixed and they plan to refinance
in 2-3 years.
3) Most of these loans have a prepayment penalty that matches
the fixed period of the financing.
4) Most lenders require cancelled checks or verification of rent
paid not later than 30 days in the past 12 months.
5) A foreclosure before the bankruptcy is hard to overcome. A
foreclosure as a result of the bankruptcy usually doesn't count.
Everyone's situation is different. To ensure the best service,
be sure you contact an experience mortgage originator that will
take the time to listen to your situation and explain all the
possibilities. It shouldn't cost you anything to inquire.
About the author:
Clinton Bengtson has been a mortgage originator (loan officer)
for almost 5 years. Prior to that, he was a CPA working at
several large companies. Clint Bengtson has helped hundreds of
people become homeowners that were declined at other lenders.
Experience is important and can mean the difference between
approved and not approved. Visit his website at
http://www.mnmortgage.net for more information.