Current refinance mortgage rates in Colorado are comparable to national rates and offer an attractive option to those who may be considering refinancing the first mortgage on their property. Renegotiating from a higher interest rate to the lowest possible payment can be a sound financial decision for many reasons.
Reasons to Consider a Refinance
• Many people who are feeling squeezed by the current economic conditions refinance their mortgage to lower monthly payments and relieve financial stress before becoming delinquent and damaging their credit history.
• Funding a special project or consolidating debt through available cash-out money at closing may be a way to pay for college expenses, a special trip, a house renovation, or unexpected medical bills.
• Locking in a better mortgage rate may save money in the long term, especially if the original rate was much higher.
• A home owner may want to change the conditions of the original mortgage by lengthening or shortening the number of years in the loan agreement or by changing from a fixed to an ARM or hybrid rate.
Refinance Rates in Colorado
Colorado offers fixed rate refinances for 5, 15, 20, and 30 years. Hybrid-Adjustable Rate Mortgages can be for 3/1, 7/1, and 10/1 year periods. It is also possible to find FHA and VA fixed-rate loans with 15 and 30 year refinance rates. The FHA Streamline refinance program does not require an appraisal and tends to be a simple and speedy process for those who are eligible. It is always important to check with multiple competitive lenders for the best rates and provisions. In some circumstances, a poor credit rating and new loan terms could actually drive a monthly payment higher than it was previously.
Closing Costs and Points
Closing costs vary depending upon the size of the refinanced mortgage, the number of services for which a fee is charged, and the points included in the transaction. They may be as much as 3% of the total amount borrowed, which can, in some cases, be rolled into the loan itself. Each point represents 1% of the total mortgage refinance amount. By paying more points, the interest rates can be lower. Some lenders advertise refinance mortgage rates rates in Colorado with no cost closings. However, it is possible that this money is simply recouped through higher interest rates. It is important for the home owner to know exactly what a refinance mortgage will cost in total to be able to choose among lenders.
The Refinance Process
• Review and compare several published lender rates, but know that these are their best prices for which you may or may not be qualified.
• Calculate your payment and review the amortization table.
• Choose suitable lenders or brokers which may be banks or brokerage companies.
• Submit the loan application and expect quotes.
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