Refinance rates in ColoradoThere are many home refinance options, and each comes with slightly different features and rates.
Current 30-year fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?The year 2023 was dominated by rising interest rates — however, the average 30-year mortgage rate finally began to dip in October, ending the year below 7%. The current mortgage rates forecast is for rates to continue their downward movement.
Our market expert is cautiously optimistic about 2024 but also warns that affordability won’t increase dramatically any time soon. Still, our expert believes rates may be closer to 6% by the end of the year.
That said, it’s not a good idea to try to “time the market.” If you’re looking to get the best mortgage rates possible, you’ll need to do what you can to get lower rates, rather than waiting for the “perfect” rates environment.
Let’s now look at which aspects of your mortgage rates you can influence, and what actions you can take today.
There are many factors determining mortgage rates that are out of your control, but here are a few steps you can take to get the best mortgage rate:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?Once you’ve applied for a mortgage and received a loan estimate with an offer you want to take advantage of, you should request that the lender give you a mortgage rate lock. This ensures that your interest rate won’t increase before you close on the loan.
The Colorado Housing and Finance Authority (CHFA) offers a second mortgage that can help finance up to $25,000 or 4% of your loan amount, whichever is less.
The funds can be used towards your down payment or closing costs. You will of course have to repay the loan, but you’re allowed to wait until you sell the home, pay off the primary mortgage or move out.
Who qualifies?Borrowers must:
Have at least a 620 credit score
Not exceed annual income limits (based on your household size, location and mortgage loan program)
Take a homebuyer education course
Contribute at least $1,000 toward purchase
This program, also from CHFA, offers up to $25,000 or 3% of the loan (whichever is less), so that you can boost your down payment.
This can help you reduce or even eliminate private mortgage insurance (PMI). Or, if you’d prefer, funds can also be used toward closing costs.
Since this is a grant, you won’t be required to pay the funds back.
Who qualifies?Borrowers must:
Have at least a 620 credit score
Not exceed annual income limits
Take a homebuyer education course
Contribute at least $1,000 toward purchase
NEWSED is an organization working to help underserved communities in the Denver metro area. This program, which is only for first-time homebuyers, offers up to $10,000 in assistance with a down payment, closing costs or an interest rate buydown.
Who qualifies?Borrowers must:
Purchase in the city of Denver or local metro counties (Adams, Arapahoe, Broomfield, Douglas or Jefferson)
Meet income limits, starting at $98,520 for a single-person household and going up to $185,760 for a family of eight
Purchase a home with a price that’s no higher than 95% of the median price for their area
Attend a first-time homebuyer class as well as prepurchase counseling
Contribute at least $1,000 towards home purchase
Who qualifies as a first-time homebuyer?Borrowers must:
People who have never owned a home
People who haven’t owned real estate in the last three years
Find CHFA loan officers in your area on the CHFA website.→ Colorado conventional loans. Conventional loans are a common choice for borrowers with good credit scores and sufficient down payment funds. These loans typically share certain minimum requirements set by Fannie Mae and Freddie Mac.
→ Colorado FHA loans. FHA loan requirements are far more forgiving than conventional loan requirements. You can qualify with a credit score as low as 500 if you make a 10% down payment, or put down as little as 3.5% if you have at least a 580 score.
→ Colorado VA loans. VA loan requirements offer flexibility and some great perks for military borrowers. These include the ability to purchase or refinance without making a down payment or paying for mortgage insurance.
→ Colorado streamline refinances involve FHA streamline refinance loans or VA interest rate reduction refinance loans (IRRRL). “Streamline” means that these loans require less paperwork than other refinance types. However, you’ll have to refinance from an FHA loan into an FHA loan, or from a VA loan into a VA loan, in order to take advantage of these programs.
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