Forward: the Colorado Springs Mortgage Insight is a series of mortgage articles written by local mortgage experts exclusively for our readers, here on Colorado Springs Real Estate Connection.

Often times when consumers are considering whether or not now is the appropriate time to refinance their Colorado Springs hey hear what the current interest rate is and base their decision solely on that one piece of information - interest rate.

There is more to the picture than just the interest rate, when looking to refinance your home in Colorado Springs. Most people do not consider the whole picture, which includes all liabilities, not just the mortgage payment. (Liabilities include all items that a homeowner owes money on, like a car payment, student loans, credit cards...)

The average American household has roughly $30,000 in credit card debt and they are paying an average interest rate of 12.99% ON this credit card debt. 

Let's take a look at an example of how considering more than just interest rate can be important:

Mr. Jones says, "I am currently at 6% on a 30 year fixed mortgage for my loan balance of $250,000, why would I want to refinance my home in Colorado Springs to a 6.25% interest rate? Wouldn't this increase my monthly mortgage payment?" 

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The Colorado Springs Real Estate market has seen an influx in bank owned homes for sale in the past year.

What is a Bank Owned Home?

A "bank owned home" is a home that a mortgage company, or bank, takes ownership of after the home goes through a foreclosure. Sometimes this is referred to as REO - Real Estate Owned property.

What is a foreclosure?

Per the RealEstateWiki, a foreclosure is "a legal process whereby property pledged as security for a debt is sold to satisfy a debt in the event of a default in payments or terms."

Very Basic Example: John Smith finds a home for sale in Colorado Springs that he wants to buy. He talks to a mortgage lender and gets qualified to buy the home. The loan that he gets to purchase the home is called a mortgage. John makes monthly payments on this mortgage loan every month for 3 years. At the end of the 3 years, John becomes unable to keep making payments on this mortgage loan (many reasons can cause a person to no longer make payments). The mortgage loan now goes into default, and the mortgage holder, or bank, starts the foreclosure process. After a specified amount of time, John is forced to move out of the home and the property is now the property of the mortgage lender, or bank. Now, the property is bank-owned, or an REO Property.

Read More: RealtyTrac: A Detailed Overview of the Foreclosure Process

Banks are in the business of lending money, not owning homes. So, when a bank DOES wind up owning a home, they are motivated to SELL it, even at a loss, just to get it off their books.

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If you are looking to move to Colorado Springs, or just want to find a very well-paying job here, you should check out Ladders.com. This new site is dedicated to jobs that pay no less than six figures a year.

And like the "other" job search sites, you can search for jobs in Colorado Springs yourself or you can post your resume and let potential employers find you.

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Forward: the Colorado Springs Mortgage Insight is a series of mortgage articles written by local mortgage experts exclusively for our readers, here on Colorado Springs Real Estate Connection.

Colorado Springs Mortgage Insight: Reverse Mortgages

Reverse mortgages are growing in popularity, here in the Colorado Springs real estate market. Whether seeking money to finance a home improvement, pay off a current mortgage, supplement retirement income, or purchase a new home, many senior Americans are turning to reverse mortgages. With all the Baby Boomers moving toward retirement, this is becoming a viable option for more people every year.

A reverse mortgage allows homeowners age 62 or better, to convert equity in their homes into cash without having to sell their homes or take on additional bills. 

To qualify for a Reverse Mortgage, the homeowner must:

• Be 62 years or older
• Have substantial equity in their current home

If this sounds interesting and you qualify for a Reverse Mortgage, there are some things to consider.

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Many homeowners in Colorado Springs may be facing a hike in their mortgage interest rate (or already have) and some of these homeowners (maybe you) may be unable to continue making mortgage payments and are now facing foreclosure.

Quite frankly, it is awful when you can no longer afford the home that you love.

Well, you are not alone. Thousands of homeowners are in the same position that you may be in right now, so there are now more options available to help you KEEP YOUR COLORADO SPRINGS HOME.

Here are some resources that you can look into that may be able to help, taken from the National Association of Realtors® Website:

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