Mortgage FAQs for Colorado Buyers and Homeowners

A fixed rate keeps principal and interest generally steady. An ARM can change after its initial period. Review the index, margin, caps and the payment you could face if you keep the loan longer than expected.

The interest rate determines the interest charged on the balance. APR includes certain financing costs expressed annually. Review both and compare Loan Estimates using the same loan amount, structure and timing.

Points are an upfront cost that may reduce the rate. Compare the monthly benefit with the cost and how long you expect to keep the loan. Ask for a comparable option without points.

Discuss your closing date, lock period and the costs of extensions or changes. A lock has conditions and an expiration. Confirm what is locked in writing rather than relying on a headline rate.

Closing costs include lender and third-party charges. Cash to close also reflects down payment, deposits, credits and prepaid items. Review the Loan Estimate and final Closing Disclosure, and verify wiring instructions through a trusted channel.

No. An appraisal supports value and lending requirements. An independent inspection helps evaluate the property’s condition. They answer different questions.

Principal and interest are generally fixed, but taxes, homeowners insurance, mortgage insurance and other housing costs can change. An escrow review may change the total amount collected each month.

Rules vary by loan type. Conventional PMI may be cancellable when applicable requirements are met. FHA mortgage-insurance duration follows different rules. Ask about your actual loan instead of assuming all insurance ends at the same equity level.