In this week's blog post we want to help you answer this question: how much house can you afford in or near Boulder, Colorado? To help out, here's a little back-to-school math problem: let's say you find a house for $500,000 (yes! it is still possible!) and want to put 10% down with a 15 year mortgage for 4% interest (we think interest rates may be on the rise). If you are a potential buyer, feel free to just click on our mortgage calculator (view "Read Full Post" to find out what your estimated payments may be.
Of course, what type of loan you may qualify for is another math exercise. It is always a good idea to start off your house hunting with a trip to your trusted mortgage lender and ask him or her to pre-qualify you and, if applicable, your partner. If you are serious about buying a home, read below for at least three reasons why you could benefit from the pre-qualification process:
- You will have an opportunity to discuss loan options and budgeting with your lender;
- Your lender will check on your credit and alert you to any problems, which you could work towards correcting before you put an offer on a home; and
- As a buyer, you will learn the maximum dollar figure you can borrow, thus giving you the price range.
Louisville Realty's 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.
No matter what you think you will owe, we feel that Rule #1 in this process is for serious buyers to get pre-qualified. Especially in such a seller's market.
If you have been following LRA on Facebook, you already know how much interesting real estate information we provide on a daily basis. If you are new to LRA and you would like to see housing data for Boulder County, there are plenty of statistics to check out in such as "Days on Market", "Total Inventory" and "Newly Listed Homes". We track all these market statistics for Single Family Homes (SFH) for most of neighboring towns on a monthly basis, including Louisville, Erie, Lafayette and Superior. Check out Spring 2017 market summary here. At Louisville Realty Associates, we have the experience, energy and depth of knowledge to help you list your home for the best price. You can reach us anytime at firstname.lastname@example.org.
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