Colorado Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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The average annual property tax in Colorado is $1,113, and the real estate tax rate is around 0.51% — the third cheapest in the country. MoneyGeek developed its Colorado mortgage calculator to help homeowners estimate their average monthly mortgage costs and understand the cost breakdown.
A mortgage payment generally includes principal, interest, property taxes, homeowners insurance, and other costs like private mortgage insurance (PMI), flood charges and homeowners association (HOA) dues. Understanding the costs and fees associated with a mortgage helps you make a budget and have a better idea of your financial responsibilities.
In this guide, MoneyGeek explains how to use the mortgage calculator and get cheaper mortgage rates in Colorado. We also listed the steps you need to take after getting an estimate of your monthly mortgage costs in the state.
Start Here: Plug In Your Mortgage Factors
MoneyGeek’s mortgage calculator for Colorado gives you a comprehensive estimate of your average mortgage costs. The calculator allows you to adjust down payment, interest rate, term, etc. You can read the factor breakdown below for more information.
Why and How To Use Our Mortgage Calculator
Because it’s a long-term commitment, it’s important to know how much money you can afford to pay for a mortgage every month. You should consider your financial situation and every factor that affects mortgage payments to choose the option that fits your needs. Doing so helps you avoid financial troubles later.
Generally, the main factors that affect your mortgage interest rate include credit score, home price, location, down payment and loan term. There are other important factors, too.
MoneyGeek’s Colorado mortgage calculator can help you get a personalized estimate of your average monthly mortgage costs based on several factors. To prepare, you need to gather the following information and familiarize yourself with what certain items mean:
Home Price:
Input the price of the property that you want to buy or your desired loan amount. You can get the price from the property listing.
Down Payment:
In this section, include the down payment amount in dollars or the percentage of the home price. Lenders may charge a lower interest rate with a higher down payment.
Interest Rate:
Input the interest rate you expect to pay. You can obtain interest rates from MoneyGeek’s daily mortgage reports.
Loan Terms:
Choose the duration of the loan. You can typically choose from a 10-, 15-, 20- or 30-year term.
Payments per Year:
Choose how many payments to make each year. The most common number of payments per year is 12 (once a month).
Property Tax:
Colorado’s annual property tax averages $1,113. You can find the option to enter the tax under “Other Fees.”
HOA Fees:
If the property you’re interested in buying has a homeowners association (HOA), you pay a fee. Enter the amount here if you know it — it’s often in the property listing.
Principal & Interest:
The principal is the amount of money you return to the lender, while interest is the fee the lender charges to let you borrow the money.
Monthly Payment:
Your monthly mortgage payment includes principal, interest, property taxes, homeowners insurance and HOA fees.
Principal Payment:
This refers to the payment made to the lender that reduces the total amount of money you owe.
Interest Payment:
This payment covers the interest charged by the lender to let you borrow the money.
Total Cost With Interest:
This includes the principal amount that you have to pay back and the total interest charged by the lender for the entire term of your loan.
MoneyGeek’s research shows there are several ways to lower your monthly mortgage payment in Colorado.
- Less expensive house. Your monthly mortgage payment will be lower if you opt for a house that doesn’t cost much and requires a smaller loan.
- Different location. Property taxes vary in every state. Colorado has the third-lowest real estate tax rate of around 0.51%, but where you live in the state may change your total property tax costs.
- Find a lower interest rate. One way to get a lower interest rate is with a higher down payment. You can find cheaper rates by paying at least a 20% down payment.
- Extend loan term. Some might find it easier to make mortgage payments over a 30-year term as the payments are lower, but you pay more interest over time.
Next Steps: What To Do After You Have Estimated Your Mortgage Payments
MoneyGeek gathered all the necessary details to help you move forward in your home-buying journey.
- Shop & Compare Rates - You can shop around and compare mortgage rates in Colorado to find the best deal that fits your needs.
- Not Ready To Buy? - If you feel like you’re not ready to buy a house yet, you can read MoneyGeek’s Rent vs. Buy Guide to help you make a decision.
- Learn More - You can learn more about different types of mortgages by delving into MoneyGeek’s research about reverse mortgages, VA loans and FHA loans.
Frequently Asked Questions About Mortgages in Colorado
Here are answers to some of the most frequently asked questions about mortgages in Colorado.
A lender generally considers your mortgage affordable if your debt-to-income (DTI) ratio is 43% or lower. The percentage of your income you have available to pay a mortgage without financial hardship is key.
On average, the outstanding mortgage amount in Colorado is $259,113.
Lenders charge you a lower interest rate if you pay a higher down payment. There are some programs available that only require about a 5% down payment, while certain government-backed programs require no down payment at all.
Yes, private mortgage insurance is the requirement of most conventional loans in Colorado if you don't have a down payment of 20%. However, you can get rid of it by refinancing when you reach 20% equity.
On average, the property tax in Colorado is $1,113 per year.
The average monthly mortgage payment in Colorado is $1,342.
MoneyGeek found the median home price in Colorado is $381,300.