Is a Conventional Mortgage Loan in Your Future?

If you are looking to buy a second home for a vacation getaway or just because you need to upgrade to a newer home, you may be on the market for a home mortgage loan that is available to more experienced home buyers like you. Conventional mortgages, which make up about 30-50% of all home loans, are generally the types of financing you will be able to obtain, based on your particular needs. Here’s why a conventional home mortgage loan could be in your future.

What is a conventional loan?

A conventional home loan is any type of home mortgage loan arrangement that is for home buyers who have already purchased a home in the past and are looking for a program to buy another home. Unlike first time home buyer loans, conventional loans are not covered by FHA loan guidelines, instead generally requiring at least a 3% down payment on the purchase price of the new home. A conventional loan is probably not a good choice for a first time home buyer that can qualify for additional programs like those provided by the government.

However, just as in any other home mortgage in Denver, the loan types are similar in that you can obtain a 15 to 30 year fixed rate mortgage with low monthly payments. Most consumers have already earned equity in their present homes, so it’s not uncommon for a new home purchase to be partly funded in the form of refinancing based on the equity of the existing home or by selling it outright and using the profits as a down payment.

Will a conventional loan work for you?

Making the decision to work with a mortgage company like Naranche can be your best source for information about conventional loans. Because they are more complex than a first time home buyer program and they may involve taking out larger loans at the jumbo loan limit range, it can save you a lot of time and money to work with an experienced home mortgage banker, rather than trying to tackle this alone.

A conventional loan will work for you when you need to finance a second home purchase and have some capital to work with as far as a down payment and a decent credit score. In addition, conventional loans typically carry lower interest rates than jumbo loans or those received from private investors which can save you even more money in the long run.

If a conventional loan is in your future, let Naranche find it for you

Once you have made the decision to start the process of buying a secondary home, look to the caring experts at Naranche to help you. For decades, Naranche has been serving the Colorado home buyers of the Castle Rock, Cherry Hill, Denver, Golden, Littleton and Parker areas. With their common-sense approach to doing things, you will get approved and into your new home in much less time than if you tried to do this on your own. You will save money too, since Naranche has access to credit enhancing solutions and creative financing programs. When you see a conventional loan in your future, think Naranche.

A Comprehensive Look at Jumbo Loans

Do you have a large piece of property or an expansive home that you are looking to buy as a private residence, but don’t have the capital to purchase it outright? Well then, you may be looking for a “jumbo loan”, a large loan that exceeds the lending capacity of many banks. Look here for information on jumbo loans and how they can help you with your real estate investment needs.

What are jumbo loans?

In terms of loans, jumbo loans are huge sums of money lended by a network of mortgage firms or a combination of loans and other creative financing sources. Jumbo loans exceed the limits set forth by Fannie Mae and Freddie Mac, the largest home mortgage lenders in America. Generally, a loan that exceeds $417,000 USD is considered a jumbo loan by Denver home mortgage companies.

Will a jumbo loan be right for you?

The first thing you need to ask yourself before taking on the responsibility of a jumbo loan is how much you can afford to put down on the home purchase price to reduce your long-term risk, especially in this market. Often having a network of investors to work with you and raise initial capital can reduce this risk substantially. Your monthly mortgage payments will be lower and you will end up paying less in interest and other fees for the life of the jumbo loan, which can take as long as 30 years to pay off.

Another thing to consider when looking at jumbo loan programs is that they have similar terms to other forms of home mortgage loans such as 15 or 30 year fixed mortgage rates and 30 year variable mortgage rates. Choosing one or the other can cause substantial hardship based on how well the mortgage rates perform in the future. It may be beneficial to find other means to finance the home purchase, such as combining the jumbo loan with FHA, CHFA, or ARM loans.

The good thing with jumbo loans is that mortgage companies and financial institutions understand that because of the size of the Denver home loan, a 30 year term is often the preferred method of repayment – with lower payments during the beginning of the loan period. This can be a plus if the property you are buying is an investment that will be upgraded and sold for profit within the first few years.

Why Naranche is your best source for a jumbo loan

Trying to manage a jumbo loan on your own is going to be a very stressful experience. You will want to consult with an experienced home mortgage banker like Naranche who can help you through the entire process. Naranche can give you the advantage as they have access to HELOC’s to offset any credit issues which take seconds through their banking relationships. In addition, the responsive professionals at Naranche can get your approval and closing scheduled in an acceptable time frame because they are the lender, not the middleman.

How FHA Loans Work For First Time Home Buyers in Denver

For first time home buyers, now is a great time to consider Federal Housing Administration (FHA) loans which are managed by the Housing and Urban Development (HUD) branch of the US government. FHA loans make it easier for first time home buyers and those with credit risks to obtain the home of their dreams. Read more to find out how FHA loans may work for you.

What are FHA loans?

Back in the late 1930’s, the government wanted to help communities that had fallen due to the Great Depression bounce back with carefully managed urban development programs that would create homes for the thousands of families without adequate shelter. So the Federal Housing Administration was formed and began work on this important mission.

Soon thereafter, the FHA developed a program to help Americans become home owners by offering loan insurance that guarantees a certain amount of the loan amount, making it easier for those with limited or challenged credit to get financing from a mortgage company in Denver and other areas of the country.

Is an FHA loan the right choice for me?

If your credit history is less than perfect or if you have limited resources to put a down payment on a home, the FHA loan may be a solution for you. FHA loans allow home buyers to get financial help to buy a home even if their FICO scores are low; have bankruptcies and even experienced foreclosure. The conditions, however, are that you have maintained above average credit since your debts were discharged or written off, so you must be able to demonstrate that before applying for an FHA loan.

Keep in mind that FHA does have standards and may require that repairs be made to a home to bring it up to safety standards before a loan may be obtained. However, if you are buying an older home and it passes a safety inspection, you won’t have to go out and put a new roof on it or do anything drastic before getting an FHA loan. One other thing to consider is that an FHA loan is a form of a Denver fixed mortgage rate, in other words you will lock into a low interest rate that will remain the same for the life of the loan. FHA loans work well for those with limited resources or consumers who want to avoid the risk associated with adjustable rate mortgage rates in Denver or ARM’s.

Getting an FHA loan the simple way

Before you decide if an FHA loan is right for you, consider taking the time to call on the services of a well-esteemed and trusted home mortgage banker in the Denver area – Naranche. The experts here have helped many people become home owners, even those with credit problems and little to no down payments. Talk to the professionals who will use a common sense approach and utmost respect with helping you get into the home you want.

For those who have sacrificed so much by being on active duty or have retired from serving in the United States military, there are many opportunities to buy or refinance a home. Mortgage bankers and other home financing companies make special concessions for members of the armed forces and their families. The home mortgage company, Naranche, can help you find a home loan that honors this tradition of service to our country.

What is a VA loan?

When a service-person is seeking home mortgage financing. The Veteran’s Administration has a home loan program in the form of a generous guarantee that is often referred to as the VA loan or an entitlement loan. This means if a military defaults on a home loan, the US government guarantees that a portion of the loan will be covered.

Currently, VA loans allow American GI’s the ability to loan around $100,000 to $140,000 with up to one-third of that guaranteed by the US government. Combined with other forms of home loans, this can generally pay for a good deal of the home. Mortgage brokers are happy to discuss the VA loan program and find creative ways to use this in securing finances needed to buy a home at some of the lowest mortgage rates in Denver.

Who qualifies for VA loans?

To qualify for a VA loan, in addition to being either active duty or honorably discharged, you must meet one of the below requirements:

• Be a US wartime / military conflict veteran (World War II through the present)
• Be retired from a peacetime service of at least 181 days.
• Have completed at least six years of reserves in an approved branch of the military.
• Possess a certificate of eligibility from the Veterans’ Administration

If you are unsure whether or not you qualify, you can always check with the Veterans’ Administration who can review your military service records to determine if you are eligible for a VA loan program. You will be issued a certificate of eligibility if you are, which is a vital piece of paperwork needed before you can start the VA loan application process.

Find more help with getting a VA loan here

Getting a VA loan doesn’t have to be complicated as you may think, despite all the red-tape normally associated with government benefits and the military administration. Your best route to a VA loan is to talk with an experienced Denver mortgage broker like the team at Naranche. They have the know-how to help military folks find the means to finance their homes and get approved for VA loans and conventional Denver loans much faster than trying to do it alone. You may also be pleasantly surprised to find the Naranche has loan programs that can save you a lot more money than other organizations. You can trust that Naranche can give you the responsive help you deserve.

Experienced Mortgage Brokers in Denver, Colorado

Naranche is a mortgage banker serving the Denver, Colorado region with over 28 years of experience helping consumers secure the finances needed to make home purchases or improvements. With straightforward advice and competitive rates, the financial experts at Naranche specialize in jumbo, conventional, FHA, CHFA and VA loans as well as first time buyer mortgages and reverse mortgage options with all kinds of terms.

What is a mortgage?

In the simplest of terms, a mortgage is a loan given to a consumer by a financial institution for the purpose of buying or remodeling a home or property. Once the Denver mortgage is procured, the buyer is responsible for repaying the loan over time, plus any interest and fees. There are many different types of home mortgages available, from short-term fixed rate low interest loans to those that carry variable interest and longer repayment terms. There are also some mortgage loans that are offered by government programs to help buyers when selecting their first home or repairing their home to make it more energy efficient. A Denver mortgage broker can assist consumers with selecting the best mortgage program.

Things to consider before getting a mortgage:

Being knowledgeable or getting help from a qualified Denver mortgage company can be helpful before signing up for any mortgage program. Here are some things to consider before getting a mortgage in Denver.

• Credit Rating. The interest rate and the ability to get a mortgage are determined on your overall credit rating. Checking this ahead of time and determining if you have good or great credit ahead of time can save you time and money. The higher your credit score, the easier it will be to get an affordable mortgage with lower monthly payments.
• Income and Expenses. Before deciding on which mortgage to accept, it’s vitally important to have an adequate monthly income to cover this expense. If you are expecting a lapse or a decrease in pay or an upcoming added expense (such as the birth of a child or a job change) it may not be a good time to take a mortgage.
• Assets and Savings. When determining what mortgage loan to go with, consumers often forget to list the tangible assets they may have, such as property, savings or other lump sums that can be used as collateral. Having at least 5-10% of the mortgage in available savings may help in getting a better rate or lower interest.

Why choose Naranche mortgage bankers?

Since 1981, Naranche has been the go-to source for competitive Denver home loans and creative financing solutions. After building successful companies for Lomas & Nettleton, Shearson/American Express, and Prudential, the mortgage professionals at Naranche decided to focus more energy working with friends, fans, and referrals to help them find the most affordable mortgages available in Denver. Naranche is a licensed mortgage broker and a member of the Colorado Division of Real Estate.

Finding the Best Home Loans in the Denver, Colorado area

When you are looking for the best value in home loans in the Denver metro area, you’ll want to consider using a reputable mortgage banker that can offer you the convenience of one-stop shopping. Not only can Naranche help you find the Denver mortgage that you need to make your dreams of home ownership or remodeling a possibility, they do this with the commitment to bringing you unbeatable low rates. Saving you time and money is what the experienced home lending team at Naranche can do.

Unraveling the mystery of home loans

If you are a first time home buyer or in the process of looking for reasonable home loan mortgage rates in Denver, you may be experiencing confusion when it comes to home loan programs. Home loans are as varied as consumers are in that there are programs designed to meet the needs of any type of home purchase, refinance or upgrade. Repayment terms and amounts can also differ, depending on the type of loan you go with, so it’s important to know what you may be getting into ahead of time to ensure smooth sailing years from now, despite changes in the economy or your finances.

Before selecting a home loan program, be sure that it fits your needs including your future goals for your home. The home loan process doesn’t have to be a mystery when you work with knowledgeable home financing professionals like those found at Naranche. Getting a home loan can be a pleasant experience when you have the support and expertise of a reputable, licensed Denver mortgage broker like Naranche backing you up every step of the way.

How to find the best home mortgage loans

Finding the best home mortgage needs is made easier by having the tools to begin your search. When shopping for a mortgage, one of the best resources is the Internet. There are several excellent web-based mortgage finding services that allow consumers to search for a home mortgage anonymously and without any pressure. Keep in mind that eventually you will be asked to pick a realtor or mortgage firm, so just get an idea and then call the trustworthy mortgage bankers at Naranche to secure a home loan that beats all the competitors’ rates.

Another resource for locating the best home mortgage loans is by contacting your bank directly. Albeit, with the recent credit crisis in America, many small town banks were not in the business of lending much money for home purchases, but this has started to ease up. At least inquire as to what Denver home refinance or loan programs are currently active and see where you can get. In the end, you’ll probably be better off dealing with a home mortgage banker like Naranche who has the in-house financing solutions you need now.

Get the home mortgage loan results you need now

By now, you’ve probably figured out that you can get better results when searching for home mortgage loans by dealing with a mortgage broker that specializes in just this. Get a more personal service and a faster response by working with the expert team of caring and dedicated home loan officers at Naranche.

The Basics of Variable Interest Rate Home Mortgages: Pros and Cons

When shopping for the best home mortgage program to finance or refinance your home, you may be coming across variable interest rate mortgage loans. This type of loan program may be unfamiliar to you so the Denver home mortgage specialists at Naranche want to help you by providing more information about what they are and how they may or may not be the best choice for you.

What is a variable interest rate home mortgage?

Variable interest rate home mortgages, also sometimes referred to as adjustable home loan mortgage rates (ARM) or floating rate mortgages, are a form of mortgage that allows for fluctuations in the interest rates being charged for home mortgages during any one month period in the United States. So what that means for home buyers is that the monthly payment made can change month-to-month for the life of the loan. Generally speaking, the interest rates for a home mortgage loan will increase over time, dependent upon the state of the housing market for any given region.

The pros and cons of variable rates

There are many positives as well as negatives surrounding variable interest rates home mortgages. For home buyers who are looking for payments that will stay the same for the terms of the loan, say 10-30 years, a variable interest rate mortgage may not be the best choice. For those who wish to get into a home of a higher range or get a Denver home refinanced to enjoy low payments when the market is performing well, it is a great option. Here are some of the most common pros and cons associated with variable interest rate loans.

Pros

• It’s easier to qualify for a variable rate interest mortgage loan because financial institutions know you will be paying the current market rate for interest vs. getting a fixed rate mortgage.
• Monthly payments can be much smaller than other more conservative home loans. Your neighbor with the fixed rate mortgage may be paying a higher monthly payment for an equal-value home.
• Variable rate interest mortgages can be more flexible in terms of how much of a down payment is required and the length of the terms, allowing home owners to pay off their homes much faster for short term stays.

Cons

• Variable rate interest loans can produce “payment shock” when interest rates suddenly increase. This has been partially responsible for the housing market collapse.
• Variable rate mortgages may be somewhat confusing in that there are multiple types of programs and terms available, making it difficult for consumers to choose.
• Variable loans can and will generally increase over long term loans. That means you can pay significantly more for a home if you plan to live in it for more than ten years.

How you can take advantage of the home mortgage experts at Naranche.

The variable home mortgage bankers at Naranche have been helping home owners in Colorado and the surrounding region since 1981. They know what the housing market is about and how to avoid pitfalls when selecting loans. They also provide responsive support and help with other forms of lending, such as government grants, FHA and HUD programs as well as having the ability to work with internal sources of financing. If you are having trouble deciding if a variable rate mortgage is right for you, contact the licensed home mortgage experts at Naranche.

Information About Fixed Interest Mortgage Rates in Colorado

The news is abuzz about the economy and home mortgage rates in many states including Colorado. Add to that, challenges within the housing market that have led to many home owners choosing home mortgages that reduce the risk of running into high monthly payments. If you’ve been considering a home purchase or refinance, you may have heard the term fixed interest rate and are curious about what this means. Please read the information below to find out more about what a fixed interest rate is and how it may be the right choice for you in a Denver home mortgage.

What are fixed interest rates?

Fixed interest rates are loans in which the interest rate remains fixed or stays the same for the duration of the loan itself. The fixed interest rate mortgage loan allows consumers to take advantage of historically low interest rates in the home lending market and then lock them in for a period of 5, 10, 15, even 30 years while they are paying for a home. Fixed interest rates are very popular with home buyers, accounting for three-fourths of all home loans today.

Is a fixed interest rate home mortgage right for me?

Deciding on a fixed interest rate home mortgage may depend on several factors. First and foremost, a fixed interest rate is a more conservative form of home financing, leaving little room for risk, unlike an adjustable rate mortgage or ARM. Secondly, the fixed interest rate mortgage takes into account that homeowners generally like to know what to expect in a monthly payment and want to plan their income and retirement plans around their expected expenses.

A possible disadvantage to getting a fixed interest mortgage rate is that you may end up paying too much for your home over the length of the terms of your loan. While your neighbor may pay more or less each month for their equal-price home, they may enjoy lighter monthly payments when interest rates are low as compared to the same payments that you make. In addition, a fixed interest rate mortgage may limit the amount of house you are eligible to buy, which can be a good or bad thing depending on how you look at it.

Let Naranche help you with a fixed interest rate mortgage

For the last two decades, the dedicated mortgage bankers at Naranche have been helping smart home owners with obtaining fixed interest rate home loans in the state of Colorado. They can help you with all types of Denver home loans and want to make sure that you get the best value for your hard earned money. Let Naranche help you find the right fixed interest rate mortgage for your needs.

What You Need to Know About Adjustable Rate Loans ARM’s in Colorado

Chances are you’ve heard the term Adjustable Rate Mortgage, also known as “ARM”, mentioned in conversations about home mortgage loan programs. In recent times, ARM’s have not been too popular as interest rates have skyrocketed causing some home owners to default on home mortgage loans, unable to afford the increased payments associated with their adjustable rate mortgages. In contrast, the adjustable rate mortgages have helped many consumers get into homes that were previously out of their range. Learn more about what the adjustable rate mortgage is and how it can help you with buying a home.

What is an adjustable rate mortgage?

An adjustable rate mortgage, or ARM as it’s more commonly called, is a type of home loan that features an interest rate that is not fixed. This means the interest rate paid from month to month fluctuates according to the average home loan interest rate for the region in which your home exists. The amount of the monthly mortgage payment made is based on a predetermined amount plus interest. So when the interest rates are low, the monthly interest payment is also low, making this form of Denver home loan very affordable for most consumers. When the interest rate is high, so too are the monthly mortgage payments.

Is an adjustable rate mortgage right for me?

Depending on your individual circumstances, an adjustable rate mortgage or ARM may be a good solution for you to purchase or refinance a home in Denver. Some of the factors that can affect your ability to purchase a home under an adjustable rate mortgage program are credit history, available income and how much down payment you have to work with when financing a home purchase.

The advantages of an adjustable rate mortgage are that the payments are probably going to be lower initially, you will be able to purchase a home in a higher cost bracket and you may have a much lower down-payment requirement than with fixed rate mortgages. In addition, if you are buying a home for the purposes of only living in it for a short period of time, this will enable you to enjoy lower monthly payments during that stay, while interest rates are at their lowest.

The disadvantages of an adjustable rate mortgage is that they are considered riskier in that you cannot predict what the housing market will do and therefore you may have to expect higher payments at some point in the future. In addition, if the interest rates do go up for extended periods of time, you may end up paying more for your house over the 10,15 or 30 years that you have the ARM in place.

How Naranche can help you with adjustable rate mortgages.

Keep in mind that you are not alone in this search for an affordable Denver home mortgage loan program in Colorado. The home loan specialists at Naranche have been serving the Castle Rock, Cherry Hills, Denver, Golden, and Littleton areas since 1981, so they’ve seen the housing market in good times and in poor times. Let the hard working mortgage brokers at Naranche provide the information and resources you need to make the wisest decision in buying or financing a home.

Understanding Reverse Mortgages for Home Owners in Colorado

In these challenging economic times, many mature home owners in Colorado and across the United States are strapped for cash. Fortunately, there is an affordable option to help homeowners make use of the equity they have established over the years in their homes. This is called a reverse mortgage loan and it’s being used by many retirees to pay for monthly household expenses and take much of the worry off their shoulders. If you are thinking about this type of financing for yourself or a family member, you will learn more about reverse mortgages as you read on.

What is a reverse mortgage?

It’s likely that you’ve seen the television commercials about reverse mortgages, however it’s not really clear what they are and how they work. Basically, a home reverse mortgage works like a backwards loan. Once you have paid off your home in full and own it outright, you can then use the equity established in your home to find a lending institution who will buy the house from you over a certain period of time. You essentially get a monthly check from the bank which can be used for anything you need, such as household living expenses, healthcare needs or even to take that vacation you’ve always dreamed about.

Some important things to consider however with a reverse mortgage loan is that you must be at least 62 years of age to qualify. In addition, since the bank intends to own the house once you pass away, you won’t be able to include it as an inheritance in your will. Another thing to keep in mind is that you cannot take out another line of credit such as a Denver home loan line of credit or any other type of loan that works with your home’s equity once you sign up for a reverse mortgage.

How to choose the best reverse mortgage loan

Now that you have an idea about what a reverse mortgage loan is, how do you choose the right program for your needs?

You may have met a neighbor that talked about getting a reverse mortgage loan and how well it worked out for them. However, just because it worked well for one person’s circumstances doesn’t mean that it will be perfect for you. You need the help and support of a qualified home Denver mortgage company to guide you through the process. Try to avoid responding to all the mail and phone calls you may be getting about reverse mortgage programs, which are likely to be scam artists. Talk to your family about your wishes first and then start looking for a local mortgage broker that has the resources you need to get the right kind of reverse mortgage.

Trust the experts at Naranche to help you get a reverse mortgage loan.

The Denver mortgage company that can help you learn more about reverse mortgages is Naranche – a team of dedicated home financing experts that have the know-how and resources to help you obtain a reverse mortgage on your home or that of an older family members’. Learn more and get the trusted advice of a local firm that’s been serving homeowners in the Castle Rock, Denver, Golden, Littleton and Cherry Hills region for over two decades.