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The price jumps for single-family homes in Fort Collins are showing signs of de-escalation. Yet, the median price for rent keeps climbing, according to the Coloradoan. Even as new units are being built, there isn’t much relief as consumers face a higher price point for these new dwellings.

In fact, some areas saw rents increase by 23.5 percent. The city’s median rent is about $1,335.

Further complicating the rental market is the tight vacancy rate, which stood at 2.5 percent.

A different tale can be told about the housing market, which saw median home prices drop in August.

As the incentives of buying a home over renting build-up, it’s important to understand the differences between two types of mortgages: a fixed-rate and adjustable-rate mortgage for first-time buyers.

Fixed-rate mortgage

Three words sum up the essence of this type of loan: certainty, consistency and choice.

With a fixed-rate mortgage, you’ll experience certainty through a stable monthly interest rate and payment over the life of the loan.

As we’ve seen in the Fort Collins market, and elsewhere, there are no guarantees. That’s the beauty of this program. Regardless of how the market is behaving, first-time buyers need not worry about their rate going up. That certainty should bring you peace of mind.

In addition to peace of mind, the consistency of a predictable mortgage allows first-time buyers to plan ahead. Financial planning is just that much easier when you know what to expect from your mortgage. Knowing that your interest rates and monthly payment will not change will make short- and long-term financial planning easier than ever.

Adjustable-rate mortgage

This loan program is as powerful as it is nimble.

An ARM offers a low introductory fixed-rate term, followed by an adjustable-rate period.

The rate will change based on certain financial indexes that are associated with the financing of the loan.

We are pleased to inform you that the interest rate for the initial fixed period is more often than not lower than a fixed-term loan, resulting in lower monthly payments. This nimbleness can help you plan ahead if you decide to sell or refinance your home sooner rather than later.

When first-time buyers decide to go with an adjustable-rate, they will enjoy lower interest rates and monthly payments. This period lasts long enough so that you can decide what happens once you enter the next phase.

At Element Mortgage, we are here to assist you and meet your home loan needs, whatever they are. We know you have options, and we look forward to working with you as you decide what’s right for you.

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