Colorado is a large state located in the western part of the United States. The state includes the majority of the southern Rocky Mountains, which provides residents with plenty of recreational opportunities including skiing, hiking, and whitewater rafting. The state is the 8th largest in terms of size and 22nd most populated, with a population of just over 5.5 million people. Colorado’s population has increased about 8.5% in just the past five years, which makes it one of the fastest growing states in the country.
Colorado Mortgage Laws
For those that are looking to buy property in Colorado, or mortgage lenders looking to provide financing in Colorado, there are several mortgage laws that should be considered. Colorado mortgage lenders have many restrictions that impact their ability to provide mortgages to sub-prime borrowers including requirements that borrowers meet certain credit and income requirements. Furthermore, once a loan is approved, it is required that the loans follow a certain mortgage amortization schedule.
When it comes to refinanced mortgages, Colorado is one of many states that has approved anti-flipping measures. The anti-flipping laws mean that in order for a refinanced loan to be approved, it must provide a borrower with a clear financial incentive. This helps to prevent predatory lending.
Interest Rates in Colorado
Mortgage rates across the state of Colorado are pretty comparable even though each individual market is very different. Today, interest rates on a 30-year fixed rate mortgage are around 4.15%, interest rates on a 15-year fixed rate mortgage are around 3.30%, and interest rates on a 5/1 ARM are around 3.15%. These interest rates are for well qualified borrowers and will likely be higher if a borrower has a lower credit score. While interest rates today are higher than they were a few months ago, the rates are still near all-time low levels that make buying a home a great option today.
Housing Market Outlook for Colorado
The housing market in Colorado has been very strong for the past five years. The state population has increased by around 500,000 people in just the past five years, which has made it one of the fastest growing in the country. The majority of the population lives in the Denver, Boulder, or Colorado Springs markets. The state population growth, and expected continued growth, relies heavily on the continued improvement in both the financial sector and tech industry. It is expected that in the next few years the housing market in Colorado will continue to appreciate as more and more people move into the state.
Top 5 Cities in Colorado
Overall, there are 12 cities and towns in Colorado with populations in excess of 100,000. Of these, eight are in and around Denver or Boulder. Denver is the most populated city with a population of 650,000 residents. Colorado Springs is second most populated city in Colorado with a population around 450,000 residents, Aurora is third with a population or 350,000 residents, Fort Collins is fourth with a population of 155,000 residents, and Lakewood is fifth with a population of 150,000.