If you’re trying to figure out how much you can spend to buy a home in Colorado, the answer depends on which part of the state you’re hoping to live in.
For example, the median price of a single-family home in Boulder County was over $762,000 per car in January, data. Head south to El Paso County, where Colorado Springs is located, and the average price was a much more affordable $445,000.
Statewide, the median down payment in 2022 was about $83,000. However, don’t let this amount put you off; if you have excellent credit, you can make a down payment of 3 percent of the home’s purchase price. However, keep in mind that the less you deposit upfront, the more you will pay in interest. Also, if you are unable to pay 20 percent, you will need to pay for private mortgage insurance. Use the Bankrate New Home Calculator to get an idea of how much you can afford to spend.
However, it’s important to think beyond your down payment and closing costs. Be sure to factor in all homeownership expenses to get an idea of how property taxes, insurance coverage, and homeowner association fees will affect your budget. And don’t forget ongoing maintenance costs.
Considering all this, should you buy a house at all? You might consider continuing to pay your landlord instead of paying off your mortgage. Rent varies throughout Colorado, but according to the Rent Cafe, the typical tenant in Denver pays around $2,000 per month. That’s $24,000 per year, excluding equity. If you have excellent credit, cash saved for a down payment, and plan to stay in your current location for a while (ideally at least five years), you’re probably better off making a purchase.