Understanding your financing
How the financing side works, so the numbers you are quoted make sense.
$120,000 of $600,000
Published average, week of October 22, 2026.
Varies a lot by address. In a newer Parker, Castle Rock or Douglas County subdivision inside a metro district it is often 1.0% or more. Check your county assessor.
Many Front Range subdivisions also have a metro district.
Anything above the required payment goes straight at the balance.
PMI is assumed at 0.5% of the loan a year, which is mid-range. Yours depends on your deposit and credit. An estimate, not a quote or a loan offer. It uses Freddie Mac’s published national average rate, not an offer made to you. Your actual rate depends on credit, income, the property and your lender. Taxes, insurance, PMI and HOA figures are your inputs. Confirm everything with a lender before relying on it.
Pre-qualification vs pre-approval
A pre-qualification is an estimate based on what you tell a lender. A pre-approval means they have reviewed your documents. In a competitive situation, sellers treat those very differently.
What affects the rate you are offered
- Credit profile and history.
- Down payment size relative to the purchase price.
- Loan type and term.
- Property type and how you intend to occupy it.
- Broader market conditions on the day you lock.
What to have ready
- Recent pay stubs and two years of tax returns.
- Bank and asset statements.
- Identification.
- An explanation for any large recent deposit.
This is general information, not financial advice, and not an offer of credit. Belinda is a licensed Colorado real estate broker, not a mortgage lender. Terms and rates come from the lender you choose to work with.