Mortgage Calculator CO (Colorado)
Overview of Colorado Housing Market 2023
The Colorado housing market is expected to remain strong in 2023, but price growth is expected to slow. The state's strong job market and natural beauty are expected to continue to attract people to the area, but rising interest rates and economic uncertainty could temper demand, particularly in cities like Denver, Boulder, and Colorado Springs. Given the state's diverse geography and local market variations, the Colorado housing market is likely to exhibit varying trends across different regions.
At Brighton Bank, our commitment goes beyond just providing financial services. We believe in empowering our customers with the tools and resources they need to make informed decisions about their financial future. That's why we've put together this dedicated mortgage calculator landing page – to offer you a seamless, transparent, and personalized way to explore your home financing options.
What's on this page?
-Property Tax in Colorado
-Closing Costs in Colorado
-Housing Market in Colorado
Mortgage Calculator CO (Colorado)
How to Calculate a Mortgage Payment
Calculating a mortgage payment involves a few key components: the loan amount, interest rate, loan term, and the type of mortgage. The most common type of mortgage is a fixed-rate mortgage, where the interest rate remains constant throughout the loan term. Here's how to calculate your monthly mortgage payment: The formula to calculate the monthly mortgage payment is:
M = P * [r(1+r)^n] / [(1+r)^n - 1]
The Variables are as follows:
M is the monthly mortgage payment.
P is the principal loan amount.
r is the monthly interest rate (annual rate divided by 12 and converted to a decimal).
n is the number of monthly payments (loan term in years multiplied by 12).
How a Mortgage Calculator can help you.
The Mortgage Calculator CO (Colorado) is a powerful tool designed to assist individuals in making well-informed decisions about their home financing options. This calculator provides a range of benefits:
Payment Estimation: Predict your monthly mortgage payments based on loan details, aiding budget planning.
Scenario Comparison: Testing different loan amounts, interest rates, and terms to understand their effects on payments.
Loan term: Choose 30 years for lower monthly payments but higher interest or 15 years for less interest with higher monthly payments.
Avoiding strain: Brighton Bank's calculator factors taxes, insurance, and mortgage costs for a clear monthly commitment view.
Down payment: Lower 3% down payments feasible, calculator assists in optimal initial investment.
Affordability Assessment: Determining how much house you can comfortably afford within your budget.
Interest Analysis: This shows the total interest paid over the loan's life, guiding decisions on loan terms and types.
Key Determinants of Your Mortgage Payment
At Brighton Bank, we understand that your mortgage payment is influenced by a range of factors. Here are the essential elements that contribute to shaping your mortgage payment:
Loan Amount and Interest Rate: The total amount you borrow and the interest rate applied directly impact your monthly payment. A higher loan amount or interest rate typically results in higher monthly payments, while a lower loan amount or interest rate leads to more manageable payments.
Loan Term and Type: The length of your loan term and whether it's a fixed-rate or adjustable-rate mortgage matters. Shorter terms often have higher monthly payments but lower overall interest costs. In contrast, longer terms may offer lower monthly payments but potentially higher interest expenses over time.
Property-Related Costs: Property taxes based on your home's value and location, along with homeowners insurance to safeguard your investment, are included in your monthly payment. We can help you estimate these costs accurately.
Down Payment and PMI: A larger down payment reduces your loan amount, potentially lowering your monthly payment. If your down payment is less than 20 percent, Private Mortgage Insurance (PMI) might apply, adding a cost to your payment until you gain sufficient equity.
Our team at Brighton Bank is committed to guiding you through these intricacies, ensuring you make informed decisions tailored to your financial aspirations. With our expertise, you can navigate these elements and secure a mortgage payment that suits your unique needs.
What you can do to lower your monthly payment
A mortgage constitutes a long-term financial arrangement aimed at funding a home purchase, necessitating both repayment of the principal amount and the regular settlement of interest to the lender. The monthly cost of a mortgage can vary significantly based on factors like property price, location, and the type of loan selected.
To assist you in curbing your monthly mortgage expenses and achieving savings, Brighton Bank offers insightful strategies:
Opt for a more budget-friendly home: Selecting a less expensive property translates to a reduced loan amount and subsequently lowers your monthly mortgage obligation.
Make a larger down payment: If you make a down payment of 20% or more, you won't have to pay private mortgage insurance (PMI). PMI is an extra insurance that lenders require if your down payment is less than 20%. It can add hundreds of dollars to your monthly mortgage payment.
Secure a lower interest rate: Engage in thorough research across different lenders to identify the most favorable interest rate, contributing to a decreased overall mortgage expense.
Adjust your loan term: Opting for a longer loan term results in more manageable monthly payments, though it leads to a higher cumulative interest payment over time.
How lenders decide how much you can afford to borrow
When considering your borrowing capacity, Brighton Bank takes into account several key factors to ensure a responsible and suitable lending decision. Here's how Brighton Bank determines your borrowing capacity:
Income Evaluation: Brighton Bank assesses your income stability and sources to gauge your ability to comfortably make repayments.
Debt-to-Income Ratio (DTI): The bank analyzes your existing debts in relation to your income to determine a borrowing amount that maintains a manageable debt load.
Credit History Check: Your credit score and history are reviewed to judge your creditworthiness and ensure that the borrowing terms align with your financial track record.
Down Payment & Affordability: Brighton Bank considers your down payment amount, overall property expenses, and the chosen loan type to ensure that the borrowing amount remains within your financial means.
Determining Your Affordable Home Budget in CO (Colorado)
If you are buying your first home in Colorado and settling in the Denver metropolitan area, you will not have to pay the same high prices as in California or New York City. However, it is still common to pay a small premium for the right home in this competitive market. When buying a home, it is important to consider your income, debt-to-income ratio, down payment, other expenses, and lifestyle. Your income is the amount of money you make before taxes, and lenders will use this number to determine how much you can afford to borrow. Your debt-to-income ratio is the percentage of your monthly income that goes towards debt payments, and lenders will typically want this ratio to be no more than 36%. The larger your down payment, the lower your monthly mortgage payments will be. Aim to save at least 20% of the purchase price of the home.
A person with a gross monthly income of $5,000 and $700 in monthly debt payments is considering buying a $300,000 home. Although their debt-to-income ratio is below the threshold, their low down payment will result in higher monthly mortgage payments. Other expenses, such as property taxes, homeowners insurance, and utilities, could add up to $500 per month. Whether or not they can afford the home depends on their comfort level with the monthly payments. They may want to consider buying a less expensive home or saving up for a larger down payment.
Colorado's real estate market is expected to remain strong for years to come, making it a good place to invest in land. However, the decision of whether or not to buy land in Colorado ultimately comes down to your individual needs and preferences. Some people may prefer to invest in land as a long-term investment, while others may need the land for a more immediate purpose, such as building a home.
Remember that your affordable home budget is not just about what you can qualify for but also what you're comfortable with. Owning a home comes with ongoing expenses, so it's essential to ensure that your monthly mortgage payment aligns with your overall financial health and goals.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
Following your estimation of mortgage payments, the journey towards homeownership unfolds with essential next steps guided by Brighton Bank.
Whether you're embarking on this path for the first time, considering refinancing, or managing credit challenges, Brighton Bank is here to offer invaluable support at every phase.
Compare Our Rates: Before making a commitment, it's crucial to explore and assess offers from various mortgage providers. Brighton Bank encourages you to compare our rates with others, ensuring you make an informed decision. For more details, you can also access information about mortgage rates tailored to your location.
Undecided? Rent or Buy: If you're still weighing the options between renting and buying a home, Brighton Bank provides the guidance you need to evaluate which choice best suits your unique circumstances and financial goals.
Expand Your Knowledge: Brighton Bank provides a comprehensive resource to help you expand your understanding of diverse mortgage options. Whether you're interested in reverse mortgages, VA home loans, or FHA home loans, Brighton Bank equips you with insights to select the mortgage type that aligns with your preferences and requirements.
Over the recent years, the Colorado housing market has undergone considerable fluctuations due to a surge in home demand. This surge has led to price hikes in most regions across the state, posing challenges for prospective buyers aiming to find their ideal residences. Conversely, the market has favored sellers due to a scarcity of houses relative to the higher number of buyers, resulting in escalated prices.
Source: Windermere Report
In parallel, the average duration for home sales in the markets analyzed in this report extended by 20 days in comparison to the same period in 2022. While the time needed to sell a home reduced in all markets except Gilpin County, where it increased by 31 days, the counties covered in this report observed an average of 30 days for home sales—a decrease of 17 days from the first quarter of 2023. Despite having more options available, buyers quickened their purchasing pace during the quarter, leaving us intrigued about whether this trend will persist despite enduringly high financing costs.
During July 2023, home prices in Colorado exhibited a 2.1% increase when contrasted with the previous year, achieving a median selling price of $583,800. The average count of homes sold experienced a decline of 13.2% in comparison to the prior year, with a total of 6,689 homes sold this July, marking a reduction from the 7,697 homes sold in July last year. The median duration that homes remained on the market was 22 days, reflecting a 2-day increase when compared to the preceding year.
What is the housing market like right now?
What does this mean?
Changes in home prices and their rate of change serve as crucial indicators of the housing market's robustness and the shifting affordability of homes. At present, the median home price in the United States rests at $583,800.
Average Closing Cost in CO (Colorado) Counties
Average closing costs in Colorado counties can vary widely based on factors such as property value, location, and local real estate practices. On average, Colorado homebuyers can expect to pay around 2% to 5% of the home's purchase price in closing costs. These costs typically include fees for services like appraisal, title insurance, lender charges, escrow services, and various taxes.
The average closing costs encompass a range of fees and expenses incurred when buying or selling a property, and they typically amount to a percentage of the home's purchase price. The specific costs can vary widely depending on various factors, and it's crucial for individuals involved in a real estate transaction to be aware of these costs and to review and negotiate them whenever possible. Understanding closing costs is a fundamental aspect of the home buying or selling process and helps individuals budget effectively for the overall cost of their real estate transactions.
The exact breakdown of closing costs can differ from one transaction to another, but certain fees are fairly standard across most real estate transactions. These can include lender fees, title insurance, and escrow fees. It's essential for both buyers and sellers to carefully review the estimated closing costs provided by their real estate professionals and lenders to have a clear understanding of the financial implications of the transaction. Homebuyers may also have the opportunity to negotiate some of these costs with the seller or lender, potentially reducing their financial burden during the closing process.
Average Property Tax in CO (Colorado) Counties
Understanding average property taxes in different Colorado counties is crucial for homeowners and investors. It helps assess affordability, make county comparisons, plan finances, and guide investment choices. This knowledge informs budgeting, decision-making, and potential returns on real estate investments.
This dataset offers a comprehensive view of the real estate landscape in various Colorado counties, shedding light on both the property values and the property tax burdens in these regions. Boulder County's median home value is the highest at $539,100, suggesting a prosperous housing market, yet its property tax rate is relatively elevated at 0.63%. This reflects the trade-off often seen in more affluent areas, where residents invest in higher-priced homes but, in turn, pay higher property taxes. In contrast, Bent and Crowley Counties, with more modest median home values of $82,500 and $82,900, respectively, provide more affordable housing options. However, their property tax rates, both at 0.47% and 0.52%, show that residents still face a considerable property tax burden.
The data emphasizes a fundamental consideration for prospective homeowners: the cost of property ownership extends beyond the initial purchase price. Property tax rates play a significant role in determining the overall affordability of owning a home in a particular county. While high property values may indicate a robust housing market and potential for long-term appreciation, they can also translate into higher property tax payments. On the other hand, areas with lower property values might offer more affordable housing, but residents should be aware of the local property tax rates to make informed decisions about their homeownership investments. Ultimately, this data provides valuable insights for individuals and families looking to buy homes in Colorado, helping them assess the financial implications of their choices within the context of varying property values and tax rates.
What Property Tax Exemptions Are Available in Colorado?
Let's delve into four common property tax exemptions applicable in Colorado:
Qualified Disabled Veterans. Applicants must have an honorable discharge and established a service-connected disability that has been rated by the United States Department of Homeland Security, or the Department of the Army, Navy or Air Force. Individuals being compensated at 100% rate due to individual unemployability do not qualify for this exemption.
Gold Star Spouses. Applicants must be a surviving spouse of a United States Armed Forces service member who died in the line of duty and the spouse received a death gratuity from the Department of Defense, or a surviving spouse of a veteran whose death resulted from a service-related injury or disease as determined by the United States Department of Veterans Affairs and who is receiving dependency indemnity compensation awarded by the United States Department of Veterans Affairs.
Senior Citizen Exemption. In Colorado, qualifying seniors will see 50 percent of the first $200,000 of actual value of their primary residence exempted from property tax. For example, if your home was valued at $200,000, the exemption would reduce the taxable value to $100,000.
Homestead Exemption. Colorado's statutory homestead exemption exempts a portion of a homestead from seizure to satisfy a debt, contract, or civil obligation. From $75,000 to $250,000 if the homestead is occupied as a home by an owner of the home or an owner's family and from $105,000 to $350,000 if the homestead is occupied as a home by an owner who is elderly or disabled, an owner's spouse who is elderly or disabled, or an owner's dependent who is elderly or disabled.
Property Tax Landscape in Colorado and Beyond
Property taxes in Colorado are governed by the state's 5.5% Property Tax Revenue Limit. This limit restricts the amount of total property tax revenue that a local government may collect each year. The assessed value of a property is determined by the county assessor and is based on the property's market value, but cannot be more than 150% of the property's market value. Property taxes in Colorado are due on January 1st of each year, but homeowners can pay their property taxes in two installments, due on August 1st and December 1st.
The property tax landscapes beyond Colorado, property tax regulations vary widely across the U.S. Each state has its own approach, with some having higher rates, while others might not impose property taxes at all. Property taxes serve as significant revenue sources for local governments, funding essential services like education and infrastructure. States use diverse assessment methods, including market value, income, and cost approaches.
In addition to the state's 5.5% Property Tax Revenue Limit, there are a number of other factors that can affect property taxes in Colorado. These factors include the mill levy, special assessments, and the homestead exemption. It is important to note that the property tax landscape in Colorado is constantly changing, and this can have a significant impact on property taxes. When property values go up, property taxes go up as well.
Home insurance, also known as homeowners insurance or property insurance, is a type of insurance policy that provides financial protection to homeowners against various risks and perils that could damage or destroy their property. This insurance coverage helps homeowners recover financially in case of unexpected events that result in damage to their homes, or belongings, or liability for injuries or damages to others that occur on their property.
Coverage Types and Options
When it comes to protecting your most valuable asset, understanding your options is essential. Home insurance offers various types of coverage to ensure you're safeguarded against unexpected events. Here are some key coverage types:
Dwelling Coverage: This protects the structure of your home itself, including its foundation, walls, roof, and more.
Personal Property Coverage: Covers your belongings, such as furniture, electronics, and clothing, in case of damage or theft.
Liability Coverage: Offers financial coverage in the event someone gets hurt on your premises and you are deemed liable.
Additional Living Expenses: Helps with temporary housing and living expenses if your home becomes uninhabitable due to covered events.
Factors That Determine Coverage Needs for CO (Colorado)
When considering homeowners insurance in Colorado, there are several factors that will determine the coverage you need. These factors can vary from person to person, but it's important to understand them in order to make an informed decision about your policy. Here are some key factors to consider:
Location - The location of your home plays a significant role in determining your coverage needs. Colorado, a landlocked state, doesn't face coastal risks, but it does have varying challenges, including flood-prone regions and high-crime neighborhoods. While Denver and its suburbs can experience localized flooding due to heavy rainfall and snowmelt in certain low-lying areas near rivers and creeks, Boulder County, particularly areas near water bodies like Boulder Creek, has a history of significant flood events. In terms of high-crime neighborhoods, cities like Denver and Colorado Springs have areas with varying crime levels, necessitating research into local crime statistics and safety precautions when considering where to live in the state. Consulting local authorities and community resources can provide additional insights into specific neighborhood risks in Colorado.
Coastal Proximity - For homes located near the coast, there may be increased risks associated with hurricanes, storm surges, and coastal erosion. It's important to have coverage that protects your property from these potential threats.
Flood Zones - If your home is located within a flood zone, it's crucial to have flood insurance coverage, as standard homeowners insurance policies typically do not cover flood-related damages.
High-Crime Neighborhoods - Homes situated in areas with higher crime rates may require additional coverage for theft and vandalism. This can help protect your property and belongings in case of unfortunate events.
Dwelling Features - The characteristics of your home also influence your coverage needs. Factors such as the age, size, construction materials, roof type, and overall condition of your dwelling can impact the cost of insurance and the level of coverage required.
Property Value - The value of your home determines the amount of coverage you need to adequately protect your investment. It's essential to insure your home for its replacement cost, ensuring that you would receive enough compensation to rebuild or repair any damages.
Personal Belongings - The value of your personal belongings inside your home is another crucial aspect to consider. Expensive items such as jewelry, artwork, or electronics may require additional coverage through personal property endorsements or scheduled personal property policies.
Tips for Lowering Your Homeowners Insurance Premiums for CO (Colorado)
Homeowners in Colorado are often looking for ways to save on their insurance premiums. Here are some helpful tips to lower your homeowner's insurance costs:
Explore Options: Don't just accept the initial quote you get. Make an effort to obtain and compare estimates from several insurance providers.
Increase Deductibles: Think about increasing your deductible if you can afford a larger upfront cost during a claim.
Combine Coverage: A lot of insurance firms provide discounts when you merge various policies, like home and car insurance. Inquire about the potential savings when obtaining quotes.
Improve Home Security: Installing smoke detectors, burglar alarms, deadbolt locks, and other security measures can reduce the risk of damage or theft, leading to lower premiums. Be sure to inform your insurer once you have implemented these security features.
Maintain Good Credit: In many states, including Colorado, insurance companies can use your credit score to determine your premiums. Keeping a strong credit rating can assist in reducing your insurance premiums.
Stay Claims-Free: Building a claims-free history can often lead to discounts on your premiums. Avoid making smaller claims and save your insurance for significant losses.
By implementing these tips, homeowners in Colorado can potentially enjoy significant savings on their homeowner's insurance premiums while maintaining adequate coverage.
Trends in Homeowners Insurance Rates for CO (Colorado)
Homeowners insurance rates can fluctuate over time due to various factors. Staying informed about the trends in homeowners insurance rates helps homeowners in Colorado make educated decisions regarding their policies. Here are some recent trends worth considering:
Increasing Material and Labor Costs: The cost of building materials and labor can impact homeowners insurance rates. In recent years, the rising prices of construction materials and the demand for skilled labor have contributed to an increase in insurance premiums.
Climate Change Impact: Climate change can result in an increase in severe weather events, including hurricanes, storms, and floods. These events can cause significant property damage and result in insurance companies adjusting their rates accordingly.
Technological Advances: Advancements in technology have led to improved methods of assessing risks and deciding insurance premiums. Insurance companies are increasingly leveraging data and analytics to determine rates, resulting in more accurate pricing based on individual risk profiles.
Market Competition: The competitive landscape among insurance companies in Colorado can influence rates. When multiple insurers compete for customers, it can lead to more competitive pricing and potential savings for homeowners.
Legislative Changes: Changes in local or state laws can also impact homeowners insurance rates. It's important to stay informed about any regulatory changes that may affect your premiums.
Keeping an eye on these trends helps homeowners in Colorado understand the factors driving insurance rates and make informed decisions when purchasing or renewing their policies.
Average Homeowners Insurance Costs for CO (Colorado)
Understanding the average homeowners insurance costs in Colorado provides homeowners with a benchmark for comparison. While individual premiums can vary based on numerous factors, here is an overview of the average costs in the state:
In August 2023, the average yearly cost of homeowners insurance in Colorado is $2,322, amounting to $194per month. This cost is notably 32% less than the national average expenditure of $1,754 per year.
This average cost, however, can vary depending on the factors discussed previously, such as location, dwelling features, property value, and personal belongings.
Coastal properties or areas prone to flooding may experience higher premiums due to increased risks.
It's important to note that this average cost is for a standard homeowners insurance policy and does not include any additional coverages or endorsements.
Homeowners should request personalized quotes from insurance companies to obtain accurate estimates based on their specific circumstances.
By understanding the average homeowners insurance costs in Colorado, homeowners can better budget for their insurance expenses and ensure they have appropriate coverage without overpaying.
Colorado State Average Insurance Premiums by Dwelling Limit
The data provided sheds light on Colorado's property tax structure, which is designed to link property values with annual tax obligations. Property taxes play a critical role in funding essential public services at the local level, such as schools, roads, public safety, and community projects. In Colorado, the property tax system is progressive, meaning that homeowners with higher-valued properties pay proportionally more in taxes.
For example, a homeowner with a property valued at $250,000 pays approximately $2,966.37 in property taxes annually, while a homeowner with a $750,000 property pays around $6,333.06. This illustrates the significant impact that property values have on tax liabilities.
This progressive tax structure aims to ensure that those who own more valuable properties, which often benefit from better infrastructure and access to services, contribute a larger share to fund these amenities. However, it's important to note that property tax rates and assessments can vary by location within Colorado, as local governments have some flexibility in setting their own rates and policies. Therefore, homeowners and potential buyers should consider property taxes when budgeting for homeownership, as they can substantially affect the overall cost of owning property in the state.
Mortgage Resources in CO (Colorado)
Mortgage resources refer to various tools, information, and support available to individuals seeking to obtain or manage a mortgage loan. Mortgage resources are valuable for both first-time homebuyers and existing homeowners looking to refinance or better understand their mortgage options.
Brighton Bank Mortgage Services
Are you looking for reliable mortgage services in Colorado? Look no further than Brighton Bank! We are dedicated to helping you achieve your homeownership dreams with our range of mortgage solutions tailored to meet your unique needs. Whether you're a first-time homebuyer or a seasoned real estate investor, Brighton Bank is here to assist you every step of the way.
Why Choose Brighton Bank for Your Mortgage Needs?
1. Personalized Service: Our team of experienced mortgage experts will work closely with you to understand your financial goals and find the right mortgage product that fits your budget and lifestyle.
2. Competitive Rates: We offer competitive interest rates and loan terms to help you save money over the life of your loan. Our goal is to make homeownership affordable for you.
3. Simple Pre-Approval Process: Getting started on your homeownership journey is easy with Brighton Bank. You can kickstart the pre-approval process today with just a few simple steps.
Start Your Homebuying Journey with Brighton Bank
Ready to take the first step towards homeownership in Colorado? Click the button below to begin the pre-approval process with Brighton Bank. Our team is excited to work with you and help you achieve your homeownership dreams!
Local Economic Factors in CO (Colorado)
Beyond your mortgage payment, it's essential to consider the local economic factors that can impact your financial stability and property value in Colorado:
Employment Opportunities: The availability of jobs and the health of local industries play a role in your financial security and ability to meet mortgage payments.
Market Trends: Real estate markets can experience fluctuations in prices. Our team can provide you with insights into current market trends to assist in your decision-making.
Infrastructure and Development: Development projects, transportation networks, and infrastructure improvements can affect the desirability and value of properties in certain areas.
Property Value Trends: Understanding how property values have changed over time can give you a sense of the potential appreciation of your investment.
Using a mortgage calculator is a simple and efficient way to estimate your monthly mortgage payment. By entering essential details like the loan amount, interest rate, and duration of the loan, you can swiftly determine your monthly payments. It's crucial to note:
Loan Amount (Principal): This is the total amount of money you're borrowing to purchase the property.
Interest Rate: This is the annual interest rate on the loan. Make sure to convert this to a decimal by dividing it by 100.
Loan Term: The loan term is the number of years you have to repay the loan. It's usually expressed in years. Typical loan terms are 15, 20, or 30 years. A longer-term typically results in lower monthly payments but more interest paid over time.
Down Payment: The down payment is the initial amount of money you contribute toward the purchase price of the home. It's usually a percentage of the home's price, and a larger down payment can result in lower monthly payments.
Amortization: Amortization is the process of gradually paying off your mortgage over time through regular monthly payments. Early on, a larger portion of your payment goes toward interest, while later in the loan term, a larger portion goes toward paying down the principal.
Closing Costs: These are the fees associated with finalizing the mortgage and completing the home purchase. They can include things like appraisal fees, attorney fees, title insurance, and more.
Housing Market: The housing market refers to the buying and selling of residential properties. It includes all the activities and transactions related to homes, apartments, and other types of housing.
Mortgage: A mortgage refers to a loan acquired to buy a home, where the property acts as security for the borrowed amount.
Private Mortgage Insurance (PMI): A type of insurance that is often required by lenders when a borrower puts down less than 20% of the home's purchase price as a down payment. It's commonly used to mitigate the increased risk associated with lower down payments.
Debt-to-Income Ratio: A financial metric used by lenders to assess a borrower's ability to manage their debt payments in relation to their income. The DTI ratio helps lenders evaluate the borrower's financial stability and the likelihood of repaying the loan.