COLORADO MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Colorado.
Current mortgage refinance rates in
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Colorado.
Key Points
• Mortgage refinancing can cut your monthly payments or save you money on interest in the long run, especially if the current rates are in your favor.
• Colorado refinance rates are influenced by a variety of economic factors, like the 10-year Treasure Note and housing inventory.
• Opting for a 15-year mortgage can be a smart financial move, as it often means paying less interest overall, even if the monthly payments are higher.
• Adjustable-rate mortgages (ARMs) can offer lower initial rates, making them a good choice if you plan to move before the rate adjusts, potentially providing short-term financial relief.
• A cash-out refinance allows you to tap into your home’s equity for big projects or to consolidate high-interest debt.
• By keeping an eye on Colorado refinance rates and weighing offers from multiple lenders, you’re in a good position to snag the best available deal, potentially saving a bundle over the loan’s lifetime.
Introduction to Mortgage Refinance Rates
What exactly is a mortgage refinance? It’s like a fresh start for your mortgage, with the potential for better terms or a lower interest rate. The kind of refinance you opt for will depend on what you’re aiming for, be it a lower rate or tapping into your home’s equity. This is your go-to guide for understanding how mortgage refi rates are set and how you can snag the best one out there. Whether you’re in Colorado or somewhere else, being in the know about the factors at play will help you make a savvy choice.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage refinance interest rates are influenced by economic factors and your individual financial profile. The bond market, particularly the performance of the 10-year U.S. Treasury Note, plays an important role in setting current mortgage rates. When the yield on the Treasury Note increases, mortgage interest rates tend to rise as well.
Housing market inventory is also significant. If the market slows down and there are more homes available than buyers, lenders might lower their rates to attract more customers. The overall economic environment is another important factor. A robust job market and economic growth can push interest rates higher, while a recession typically results in lower rates.
On a personal level, a strong credit score and a low debt-to-income ratio can help you secure the best possible rate.
How Interest Rates Affect Home Affordability
Interest rates are a big deal because they help determine your monthly refinance payment. (Of course, your payment is also influenced by your loan amount and the term over which you’re repaying it.) Here’s an example of how much your interest rate impacts your payment:
A $200,000 loan with a 6.00% interest rate and a 30-year term would translate to a monthly payment of $1,199. But if that interest rate jumps to 8.00%, the monthly payment would increase to $1,467. Over the life of the loan, that’s nearly $100,000 in savings with the lower interest rate. Even a small change in the interest rate can make a big difference in your savings over time, and the affordability of your home loan.
Why Refinance in Colorado?
Refinancing your mortgage can offer several benefits, depending on your financial goals. If current interest rates are lower than your existing mortgage, refinancing can reduce your monthly payments and save you money over the life of the loan. Refinancing can also help you switch from an adjustable-rate mortgage to a fixed-rate loan, providing stability and predictability in your monthly payments.
Whatever your reason, you should have at least 20% equity in your home before refinancing, especially if you plan to cash out some equity.
Common Reasons to Refinance a Mortgage
Here are some common reasons homeowners refinance their mortgage:
• You qualify for a lower interest rate due to improved credit or market conditions.
• You’re considering adjusting your repayment term to manage monthly payments or pay off the loan more swiftly.
• You want to tap into your home equity to fund significant expenses, like education or home improvements.
• Your adjustable-rate mortgage is about to reset, and you want to switch to a fixed-rate loan.
• You have an FHA loan and 20% equity, and you’re looking to bid farewell to mortgage insurance.
• You’re considering debt consolidation or releasing a cosigner.
Recommended: How Soon Can You Refinance a Mortgage?
How to Get the Best Available Mortgage Refi Interest Rate
As mentioned above, your financial history has an impact on the interest rates that lenders offer you. Homeowners with strong credit and a low debt-to-income ratio may secure much lower rates than average.
To secure a competitive mortgage refinance rate, here’s your To Do list:
• Pay your bills on time, and steer clear of new debt to bolster your credit score.
• Maintain a debt-to-income ratio under 36%.
• Compare offers from multiple lenders.
• Think about buying mortgage points to lower your interest rate.
• If you can swing it, go for a shorter mortgage term. Just remember that a shorter term means higher monthly payments.
Once you’ve achieved an optimal credit history, it’s time for a deep dive into interest rate trends.
Understand Trends in Colorado Mortgage Interest Rates
The rise and fall of mortgage rates in Colorado have put on quite a show in recent years. We saw the average 30-year fixed mortgage rate at or below 3.00% in 2021, but that number rose to approximately 7.00% in 2023. If you were hoping for a rate decrease this year, early 2025 predictions indicate that rates are likely to hold steady. By keeping an eye on interest rates, you can start to understand certain patterns.
Historical U.S. Mortgage Interest Rates
In the chart below, you’ll see that rates were around 6.00% in the early 2000s. They dropped to under 3.00% in 2020 — and cemented the idea that low rates were “normal.” In 2023, they rose again to around 7.00%. While many people today complain about high interest rates, current mortgage refinance rates are below the 50-year average. Understanding the factors that influence rates can help you anticipate rate movements and make more informed decisions about when to refinance.
Historical Interest Rates in Colorado
The state of Colorado has seen a lot of movement in mortgage refinance rates over the years, following the national trends. Below, you can compare Colorado and U.S. rates from 2000 to 2018 — they’re similar but not identical. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Colorado Rate | National Rate |
|---|---|---|
| 2000 | 7.81 | 8.14 |
| 2001 | 6.91 | 7.03 |
| 2002 | 6.28 | 6.62 |
| 2003 | 5.54 | 5.83 |
| 2004 | 5.56 | 5.95 |
| 2005 | 5.74 | 6.00 |
| 2006 | 6.52 | 6.60 |
| 2007 | 6.40 | 6.44 |
| 2008 | 6.00 | 6.09 |
| 2009 | 5.06 | 5.06 |
| 2010 | 4.88 | 4.84 |
| 2011 | 4.67 | 4.66 |
| 2012 | 3.67 | 3.74 |
| 2013 | 3.87 | 3.92 |
| 2014 | 4.13 | 4.24 |
| 2015 | 3.89 | 3.91 |
| 2016 | 3.65 | 3.72 |
| 2017 | 3.97 | 4.03 |
| 2018 | 4.56 | 4.57 |
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Choose the Right Mortgage Refi Type
The type of mortgage refinance you choose influences the interest rate you’ll be offered. Some refi types trend higher or lower. Keep this in mind when you’re considering refinancing options.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, is a popular choice for homeowners seeking to enhance their mortgage terms. While these refis often carry higher rates than government-backed loans such as FHA, VA, or USDA, they provide increased flexibility and the potential to waive private mortgage insurance if you have at least 20% equity in your home. This type of refinance is an excellent option for those aiming to reduce their interest rate or adjust their loan term.
Cash-Out Refi
Cash-out refinances are a popular way to leverage home equity, putting a lump sum in your hands for a range of financial needs, from home improvements to consolidating high-interest debt. Here’s an example: If your home is worth $500,000 and your current mortgage balance is $300,000, you have $200,000 in equity. A lender may allow you to borrow up to 80% of your equity, which would leave you with $100,000 after paying off your existing mortgage. This can be a savvy way to tackle debt or finance big-ticket items.
FHA Refi
FHA loans, insured by the Federal Housing Administration, often come with lower interest rates, making them attractive for refinancing. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance to potentially lower your rate. For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations and repairs. These alternatives can provide financial flexibility and lower monthly payments.
VA Refi
VA loans, backed by the Department of Veterans Affairs, are known for offering some of the most competitive interest rates in the mortgage market. To qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can be especially beneficial, potentially lowering your monthly payments and removing the need for private mortgage insurance. This can be a highly cost-effective option for eligible veterans and their families.
15-Year Mortgage Refi
Now, let’s talk about the 15-year mortgage refinance. This option can be a game-changer, cutting down the total interest you’ll pay over the loan’s life, even though your monthly payments will be higher. For instance, on a 30-year, $1 million loan at a 7.50% rate, you’d be looking at a monthly payment of around $6,992 and a whopping $1,517,167 in total interest. But refinance to a 15-year term at a 7.00% rate, and you’d see your monthly payments rise to about $8,988, but the total interest would drop to roughly $617,891, saving you close to $900,000 in interest.
Shorter terms save you money in two ways: by reducing the amount of time you’re paying interest on the loan, and by offering slightly lower interest rates than longer terms.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower interest rate than fixed-rate loans, but the rate can change over time. If you’re planning to move before the rate adjusts, an ARM may be the right option for you. In the short term, you can save on your monthly payments and get the financial breathing room to set your sights on your next home.
Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, it’s crucial to compare rates from multiple lenders. Look beyond the interest rate to the annual percentage rate (APR), which incorporates fees and any discount points. Calculate the total loan cost and your break-even point (that is, how long it takes for your savings to cancel out the cost of the refinance). Keep an eye on your credit score and home value — the higher they are, the more favorable rates you’ll be offered. And don’t forget to monitor local refinance rates for the best deal.
Online Refinance Calculators
Online refinance calculators are a great way to figure out your new monthly payment or compare different refinance options. They can help you understand the potential savings from refinancing by taking into account your current loan balance, interest rate, and the terms of the new loan. Using a refinance calculator can help you see more clearly and make a more informed decision about whether or not refinancing is right for you.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, potentially saving you money through a lower interest rate, reduced monthly payments, or by tapping into your home equity. But it’s important to consider the costs and benefits and how they align with your long-term financial goals. Whether you’re looking to refinance to a 15-year mortgage, an adjustable-rate mortgage, or a cash-out refinance, understanding your options and getting your financial house in order can help you get the best rate and terms.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A new mortgage refinance could be a game changer for your finances.
FAQ
How much are closing costs on a refinance?
Closing costs on a mortgage refinance typically fall between 2% to 5% of the total loan amount. On a $300,000 refinance, you’re looking at a range of $6,000 to $15,000. The final figure can vary based on location, loan type, and lender. To ensure you’re getting the best deal, take the time to compare closing costs from different lenders. This extra effort could save you hundreds, if not thousands, of dollars.
Will refinancing ding your credit score?
Refinancing can cause a temporary dip in your credit score due to the hard inquiry and the new account on your credit report, but this impact is usually minor and short-lived. If you have a high credit score, the impact of refinancing might be barely noticeable.
Will I have to pay closing costs when I refinance my mortgage?
Yes, you should expect to pay closing costs again when you refinance. Typically, these costs range from 2% to 5% of the loan amount. These costs include a variety of fees associated with processing and closing the refinance transaction, such as appraisal fees, title insurance, lender fees, and other miscellaneous charges. It’s important to consider these costs when you’re thinking about refinancing to make sure the potential savings are greater than the costs.
How many times can you refinance your home loan?
There are no set limits on how many times you can refinance your primary residence. However, each time you refinance, you’ll likely have to pay closing costs and your credit score may be affected. That’s why it’s important to consider the potential benefits and drawbacks of refinancing and weigh your options based on your financial goals and circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q125-161
More refinance resources.
-
How Much Does It Cost to Refinance a Mortgage?
-
How to Refinance a Home Mortgage Loan
-
7 Signs It’s Time for a Mortgage Refinance