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Graphic that reads: Interest: The cost you pay to borrow money. It is the payment you make to a lender for the money it has loaned to you.
Graphic that reads: As mortgage interest rates decrease, single-family home median prices are down 1.3 percent statewide from August.
Graphic that reads: Mortgage Calculator - How much might I afford? Try CHFA’s mortgage calculators.

taking advantage of decreasing interest rates

A house icon and percent icon cut out from wood

We are starting to see the impact of the Federal Reserve’s first cut of its federal funds rate in more than four years last month. It cut the rate by half a percentage point.


Calculating your monthly payment



What does a 6.5 percent interest rate look like compared to a 6.25 percent interest rate when it comes to your monthly mortgage payment? We looked at a hypothetical situation using CHFA’s mortgage calculators.

Loan Amount: $425,000

Loan Amount: $425,000

Loan Term (Years): 30

Loan Term (Years): 30

Interest Rate: 6.5

Interest Rate: 6.25

Principal and Interest: $2,686.29 monthly

Principal and Interest: $2,616.80 monthly

As illustrated, a small difference in interest rate could save approximately $70 a month on your principal and interest payment, or more than $833 a year.


Choosing your mortgage lender


When it comes to your mortgage lender, there is more to consider than choosing the one who offers you the best rates. It is important to shop around, because you want to work with a lender who offers expertise and will help guide you through the process. We recommend you interview at least three different mortgage lenders.


Sources for finding a lender include: 


  1. Your current bank, credit union, or other financial institution 
  2. Your real estate agent 
  3. Referrals from friends and family 
  4. Online, e.g., www.chfainfo.com 
  5. Nonprofit housing agencies that provide down payment assistance programs


There are several questions to consider asking when you are interviewing mortgage lenders. Just calling and asking, “what are your rates?” will likely not give you the full picture. 


Helpful questions to ask lenders may include:



  1. What type of loan programs do you offer?
  2. Can you do FHA, VA, USDA-RD, and conventional loans?
  3. How long have you been in the mortgage business?
  4. Can you supply referrals/reviews from past customers?
  5. Do you work with organizations that provide down payment assistance programs?
  6. What are the loan and other associated costs? (get a sample itemization)


Your lender is working for you, so ask as many questions as you need to feel secure. Additionally, before you move forward with any mortgage lender, you should verify that they are licensed.

chfa supports nonprofit project i see you as gala sponsor

A group of women standing in front of a beige sheet

CHFA is proud to support Project I See You’s Annual Gala celebrating 50 Years of Ownership on November 15, 2024, with a $5,000 sponsorship. Project I See You is a 501(c)3 nonprofit organization that exists to see women take ownership of their lives. The nonprofit reaches women across diverse cultural, racial, and socioeconomic barriers. Its Shared Power Initiative empowers women throughout the entire process of homeownership, and empowers women business owners with financial, marketing, and leadership expertise.

Free CHFA webinar


Attend a free, one-hour webinar to learn the steps to homeownership and about CHFA’s homeownership programs.

Learn more

Online resources


Learn more about and prepare for homeownership:

Help for Homebuyers
Mi Hogar

Colorado Housing and Finance Authority


www.chfainfo.com


This eNewsletter may contain links to other websites or third party materials. Links to external or third party websites or materials are provided solely for your convenience. The presence of a link does not imply any endorsement of the third party material, the website, its content or any association with the third party or website's operators by CHFA. Third-party websites or materials may be governed by their own privacy policy and terms of use, and the third party is solely responsible for the content and offerings presented on its website or in its materials. CHFA makes no representation and accepts no responsibility or liability regarding the accuracy, quality, safety, suitability or reliability of any third party material(s), external website or the content or materials of such websites. Use of linked sites is strictly at your own risk. 

With respect to its programs, services, activities, and employment practices, Colorado Housing and Finance Authority prohibits unlawful discrimination against applicants or employees on the basis of age 40 years and over, race, sex, sexual orientation, gender identity, gender expression, color, religion, national origin, disability, military status, genetic information, marital status or any other status protected by applicable federal, state or local law. Requests for reasonable accommodation, the provision of auxiliary aids, or any complaints alleging violation of this nondiscrimination policy should be directed to the Nondiscrimination Coordinator, 1.800.877.2432, TDD/TTY 800.659.2656, CHFA, 1981 Blake Street, Denver, Colorado 80202-1272, available weekdays 8:00am to 5:00pm.

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