Understanding interest rates are important for every homebuyer looking for a Denver mortgage. The housing market is constantly fluctuating, which means that the interest rates are constantly changing. To help you get a better understanding of what interest rates are, Jeffrey Beattie with the Alliance Mortgage Group has listed different types of rates and reasons why they change.
What Are Interest Rates?
Interest rates are a specific percentage of the amount of money borrowed that is charged by your Denver mortgage lender every month until the amount is paid back in full. Your income and credit score largely determine what type of rates you will receive on your mortgage because lenders want to know that you will pay back however much money you borrow. If you have a high credit score, this shows that you are in good financial standing and will be more likely to pay back the lender, therefore, you will be offered lower rates. If you have a low credit score, your interest rates will be much higher because you will be considered a risky borrower.
Types of Rates
In the United States, there are two main types of mortgage rates that you can get on your home loan. One is an adjustable rate mortgage (ARM), which is where your interest rates fluctuate depending on how the market is doing. This occurs throughout your entire loan term, which makes it difficult for you to accurately judge how much you are going to owe.
The other type of rate is a fixed rate mortgage. This is where you are given a set interest rate throughout the duration of your loan. Your rate will never change so you can budget appropriately and know exactly how much you owe, and how long it will take you to pay it off. Although fixed rates are generally higher than an ARM, this option is more appealing to borrowers who do not like to take risks and prefer to play it safe.
What Influences Interest Rates?
There are multiple factors that influence the rise and fall of interest rates. Some of these include economic growth, fiscal policy, monetary policy, unemployment, the housing market, and inflation.
If interest rates are at an all-time high, consumers will be less likely to borrow from a financial institution because they will be unable to afford a Denver mortgage. High-interest rates can slow down the demand because consumers will not be making as many purchases. If interest rates were low, the opposite would occur where consumers are buying more to capitalize on the low prices.
For more information on interest rates or to get started on your mortgage application today, please contact Jeffrey Beattie at 720-598-0506.
Yes! We would definitely use this team again any time. The entire team was extremely helpful in every aspect an step. Jeff and his team was always available to answer any questions. Checking and double checking our documents and crunching numbers within record times during the actual looking stages of a home to find the right one. This team didn't stop till we signed our closing documents. Loved them!
We couldn't have done it without Jeff, Anne, and Brenda. They stayed on top of everything throughout the whole process. We'd definitely recommend them!
Absolutely loved working with Jeff and Anne. They are so knowledgeable and personable. They are available on evenings and weekends to answer all questions. My realtor was horrible and they pretty much assumed the role of realtor and mortgage broker. I have referred them to friends and will continue to do so. Amazing experience!
Jeff Beattie and the entire Alliance Mortgage Group team were professional and responsive throughout the refi process. Special circumstances required increased attention to detail which they managed competently and built my confidence in their team. They will get my exclusive referral for anyone looking for a business with a professional and personal approach when needing to refinance.
The team at AMG were so helpful and knowledgeable about everything we needed to make sure this refinance went smooth! Jeff and his team were there every step of the way to ensuring all my questions were answered and I was completely comfortable with the process. I wouldn't use anyone else to handle or mortgage needs.
We were purchasing a second home in the mountains and had a couple complications with the seller which turned a routine process into a difficult one. Jeff was there every step of the way with us. He and his team were so helpful and knowledgeable about everything we needed to make sure the deal went through! They also were very easy for our real estate agent to work with as well. They provided the documentation needed quickly and were extremely thorough to make sure we hit our deadlines. Without AMG Lending and their hard work our deal would not have happened. We thank Jeff and his team for going above and beyond. We wouldn't use anyone else to handle or mortgage needs and refer everyone we know looking to buy a home or refinancing.
Jeff and his team were completely amazing! I came in needing funds, and Jeff was able to assist with my difficult situation with apparent ease. I absolutely cannot recommend him and his team enough. They were extremely friendly, kind, and efficient. Thank you!!
My husband and I used Jeff Beattie for our refinance. We have refinanced previously and I have never seen such professional and comprehensive service. He explained the process completely from the start and kept us advised as to each step in a timely manner. Whenever we had questions, he promptly responded and made sure we understood all of the details involved and explained in fully comprehensive and comprehensible manner. The refinance was completed in a reasonable time frame and he was most courteous and knowledgeable. I would not hesitate to recommend Jeff.
What an amazing group of folks. So knowledgeable, professional, awesome customer service, prompt follow up, getting the best in all services, friendly...they were top notch all the way around
Every point of buying our home went so smoothly, without a hitch! Thank you so much for helping us buy our dream home! We would recommend Jeff to anyone!