Breckenridge began as a mining town in the early 1800s. Though it still remains a relatively small city with a population of only 2,000, today Breckenridge is known nationwide for its ski resorts and summer activities.
As you consider homes for sale in Breckenridge, learn more about the basics of mortgages and the loan repayment options available. These fundamentals will help you make an informed decision.
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| Population 2,408 | Median Age 29.4 yrs | Household Size: 2.16 |
| Avg Commute: 10.1 min | Avg Income $43,938 | Avg Home Value: $580,100 |
| July High: 70.7°F | January Low: 0.5°F | |
For Sale in Breckenridge
Located just over an hour away from Boulder and Denver, Colo., Breckenridge is a small oasis for winter sports lovers. Covering a mere five square miles, Breckenridge is home to a young, highly educated population. In 2003, the average cost of new single-family homes in the area was $523,400, and it seems as if these prices will only increase. The popularity of this beautiful area, which coincidentally boasts an extremely low crime index, is soaring. As you look at homes for sale in Breckenridge, first consider the types of mortgages available to make your home purchase easier on your budget.
The ABCs of Mortgages
Most people who buy a house do not have the money to pay for it all up front. You can determine the amount of money you will have to repay to your lender by subtracting your down payment from the overall purchase price of the home. The remaining amount is repaid in what is called your mortgage. A mortgage, in other words, is the loan you take out to pay for your house.
There are two basic types of mortgages, fixed rate and adjusted rate. Both types have advantages and disadvantages; knowing more about the two will help you decide which is right for you.
Fixed-Rate Mortgages
A fixed-rate mortgage is the most common type of mortgage. In this type of loan, your monthly payments will be very stable, as your interest rates will not increase or decrease. These mortgages are available for terms of 30, 20, 15 or even 10 years. Fixed rate mortgages are most commonly repaid over a period of either 30 or 15 years. An advantage of fixed rate mortgages is you are guaranteed your payment amounts will never increase.
Adjusted-Rate Mortgages (ARMs)
Adjusted-rate mortgages, or ARMs, have an interest rate that fluctuates with the economy. One advantage of this type of loan is that you typically begin your payments with an interest rate 2 percent to 3 percent lower than the current interest rate for a comparable fixed-rate mortgage. Yet, at specified intervals, your interest rate can change. While this can sometimes prove to be helpful if your rate decreases, you are not guaranteed your rate will never increase. ARMs, however, can be helpful to many home buyers, especially if they know their income will increase in the future, thus ensuring they will be able to afford any upward fluctuations in their rates.
Deciding on a Mortgage
Selecting the right mortgage for you will involve a great deal of careful research and planning. As you obtain quotes from different lenders in Breckenridge, be sure to keep a record of the repayment options available. Once you have compiled a list of your alternatives, you can weigh the pros and cons of each to make your decision.
As you look at homes for sale in Breckenridge, speak with local lenders about securing a home loan. Now you are armed with the information necessary to understand the basics of a mortgage.
By Stephanie Allen
A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®