Mortgage Calculator in Colorado (November 2024)

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Updated: November 12, 2024

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In Colorado, Crowley County has the lowest median monthly mortgage payment at $590, while Pitkin County's is the highest at $6,010. These differences can significantly impact your financial planning, affecting both your immediate budgeting and long-term savings and investments.

Use MoneyGeek's mortgage calculator in Colorado to estimate your monthly mortgage payment, assess suitable loan terms for your budget, and understand the total interest paid over the life of the loan. Input your purchase details into the calculator to see your financial commitment.

Mortgage Calculator

Simply estimate your Colorado loan payments, taxes and PMI.

Updated: Sep 4, 2024

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Optional: add taxes, insurance, HOA Fees

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Get personalized mortgage rates from Colorado.

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Key Takeaways

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In Colorado, Crowley County has the lowest median monthly mortgage payment at $590, while Pitkin County has the highest at $6,010.

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Using a mortgage calculator can help you find a monthly payment that fits your budget and estimate total interest over the loan's life.

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The average APR for a 30-year mortgage in Colorado is 6.7%, and for a 15-year mortgage, it is 6.0%.

MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Colorado. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless otherwise stated, all rates are annual percentage rates (APRs).

See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.

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Interest rate data was last updated in September 2024.

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SEE MORTGAGE CALCULATORS IN NEIGHBORING STATES

How to Use Our Colorado Mortgage Calculator

MoneyGeek's mortgage calculator in Colorado can calculate your monthly mortgage payments, helping you determine your mortgage's affordability. You'll also understand your amortization schedule, providing a clear financial path ahead.

Calculate Your Monthly Mortgage Payment

Understanding your monthly mortgage payment involves several factors, including the home's sale price and your down payment. Explore how the Colorado mortgage calculator can assist you in this process.

  1. 1
    Home Price

    The home price directly influences your monthly mortgage payment in Colorado. A lower home price in Crowley County, at a median of $100,360, means lower monthly payments than in Pitkin County, where the median is $1,029,390, according to the National Association of Realtors.

  2. 2
    Down Payment

    The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Colorado's median down payment is $120,000, according to ATTOM data from June 2024.

  3. 3
    Annual Percentage Rate (APR)

    Your Annual Percentage Rate (APR) impacts your monthly mortgage payment, with a lower APR resulting in lower payments. The current mortgage rates in Colorado change over time and vary between loan types. For example, the average APR for a 15-year fixed mortgage is 6.0%, and for a 30-year fixed mortgage, it's 6.7%.

  4. 4
    Loan Terms

    Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. Conversely, a 30-year term typically has lower monthly payments but accrues more interest over time. Choosing the right term depends on your financial situation and goals.

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SAMPLE MONTHLY PAYMENT CALCULATION IN COLORADO

Using the mortgage calculator in Colorado, you can see that the monthly payment for a 30-year fixed-rate mortgage on a $275,000 house after a 20% down payment is $1,420. This figure excludes additional costs such as HOA fees and property tax.

Choosing a 15-year repayment term for your home loan adjusts the monthly mortgage payment to $1,856, impacting your budget in the short term. This adjustment, while increasing your monthly outlay, leads to a decrease in total interest paid by $176,893 over the life of the loan.

Determine Your Mortgage's Affordability

Buying a home is one of the most significant expenses you'll encounter, with mortgage payments taking a substantial part of your monthly income. Understanding your mortgage's affordability is crucial for maintaining financial stability. MoneyGeek's mortgage calculator for affordability can help you determine how much you can afford by inputting your monthly income and other monthly debts, such as car loans and student loans.

The calculator also reveals your debt-to-income ratio, a vital metric for borrowers. This ratio shows how much of your income is dedicated to debt payments, which is important when planning to secure a mortgage. According to Experian, the average debt in Colorado is $154,481, translating to an average monthly debt of $12,873.

See Your Amortization Schedule

Mortgage amortization is the process of paying off a loan over time through regular payments. The key terms are:

  • Principal: The loan amount you borrow. Understanding this helps you see how much you owe.
  • Interest: The cost of borrowing the principal. Knowing this shows the total cost of your loan.

MoneyGeek's mortgage calculator allows you to see your amortization schedule and estimate the total interest you'll pay over the life of your loan in Colorado. You can also see when your monthly payments begin to go more toward your principal vs. your interest, which helps you understand your payment allocation over time.

Additional Mortgage Fees in Colorado

Homebuyers in Colorado must consider additional mortgage fees that could impact their budget. For example, mortgage insurance and HOA fees could increase your monthly payment. Property taxes and homeowners insurance are other costs to keep in mind.

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    Homeowners Insurance

    Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Colorado is $3,320 per year.

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    Property Tax

    Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Colorado's effective property tax rate is 0.55%, ranking it 48th in the nation.

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    HOA Fees

    HOA fees are payments to homeowners associations for property management, maintenance, and community amenities. These fees are typically paid monthly or annually.

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    Private Mortgage Insurance

    Private mortgage insurance (PMI) protects lenders if a borrower defaults on a loan. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.

How Much Is Private Mortgage Insurance in Colorado?

The average APR for a 30-year fixed loan in Colorado is 6.7%. Using MoneyGeek's PMI calculator, you can see that for a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay PMI worth $117 per month for a 30-year loan. This amount becomes $115 for a 15-year loan.

MoneyGeek's Colorado mortgage calculator allows you to see your amortization schedule and determine when you can stop paying for PMI:

  1. 1
    Calculate your monthly mortgage payment

    Input the necessary information, such as the home's price, down payment and mortgage rate in Colorado. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank, but know you'll still have to pay for these. Run the calculator and get your total monthly payment.

  2. 2
    Calculate for your target equity

    You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.

  3. 3
    Determine the remaining equity required

    Your down payment already contributes towards the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.

  4. 4
    Establish a timeline

    Go to the Amortization tab of the mortgage calculator. Move the slider until the principal paid exceeds your remaining equity required — that's the year you can stop paying for PMI.

Private Mortgage Insurance Calculator

Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.

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WHEN CAN YOU CANCEL YOUR PMI?

You put in an 8% down payment for a home in Colorado priced at $350,000. With an average APR of 6.7% for a 30-year fixed-rate loan, your monthly mortgage payment is $2,078. You need 20% equity to cancel PMI, equivalent to $70,000.

Since your down payment was $28,000, you still need to pay $42,000 to accumulate 20% equity. Assuming that your home's value remains the same over the years and that you consistently pay your mortgage, you can request your lender to cancel your PMI by Year 11.

How to Lower Your Monthly Mortgage Payment in Colorado

Your mortgage is probably the biggest expense you have each month. For a $225,000 loan in Colorado at 6.7% interest, you'll pay $1,420 monthly. However, if you can reduce your APR by 0.25%, your new monthly mortgage payment becomes $1,383. That $36 difference in monthly payment adds up — over a 30-year fixed-rate mortgage, you'll save $13,064 in total interest.

This example highlights the value of finding ways to lower monthly mortgage payments. Here are some strategies to consider:

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    Improve your credit score

    Credit score affects your mortgage. In Colorado, if your score is above 740, the APR for a 30-year fixed-rate mortgage is 7.7%. But if it's below 680, the APR jumps to 8.0%. This increases your monthly payment from $1,569 to $1,614.

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    Save for a bigger down payment

    Putting a bigger down payment can lower your monthly mortgage payments. For a $225,000 loan in Colorado, an 8% down payment results in an APR of 7.3% and a monthly payment of $1,734. Increasing it to 25% lowers the APR to 6.8% and the payment to $1,345.

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    Choose a longer loan term

    A longer loan term affects your monthly mortgage payment. A 15-year fixed rate mortgage in Colorado has an APR of 6.0% with a monthly payment of $1,856. Switching to a 30-year term increases the APR to 6.7% but reduces the payment to $1,420.

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    Explore homeownership assistance programs

    You can find homeowners assistance programs in Colorado that may help with your mortgage costs. Institutions like the Colorado Housing and Finance Authority (CHFA) and the Colorado Housing Assistance Corporation (CHAC) offer various forms of assistance to eligible homeowners.

FAQ: Mortgage Calculations in Colorado

Using a mortgage calculator can raise questions for potential borrowers, especially in Colorado's diverse housing market. We've addressed commonly asked questions about mortgage calculators to help you understand your options.

How much mortgage can I afford in Colorado?
What is the average mortgage debt in Colorado?
How much down payment do I need to purchase a house in Colorado?
Do you really need private mortgage insurance in Colorado?
What's the effective tax rate in Colorado?
What is the median home price in Colorado?

About Zachary Romeo, CBCA

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Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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