Updated: January 10, 2025
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The current mortgage refinance rate in Colorado for a 15-year fixed loan is 5.87%, while a 30-year fixed loan is 6.43%. In comparison, the national averages for the same loan types are 5.38% and 6.45%, respectively.
We provide you with the latest insights and practical advice on refinancing your mortgage in Colorado. Our rate updates, trend analysis and strategic tips on timing your refinance empower you with the knowledge you need to make informed refinancing decisions.
MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for Colorado. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).
This data was last updated in December 2024.
The current 30-year refinance rate in Colorado is 6.43%. According to Experian, the average mortgage debt in Colorado was $333,814 as of September 2023. By refinancing your mortgage, you can potentially lower your monthly payments and reduce the total interest paid over the life of the loan.
For homeowners with a higher mortgage rate, refinancing could offer substantial savings. Explore the current refinance rates in Colorado below to see how you might benefit.
| 15-Year Fixed | 5.74% | 5.87% |
| 30-Year Fixed | 6.36% | 6.43% |
In Colorado, 15-year refinance rates decreased from 5.99% in October to 5.78% in November. In contrast, 30-year refinance rates showed an upward movement from 6.36% in October to 6.46% in November.
Data from 2024
Interest rates rise for several reasons, such as the US Federal Reserve's monetary policy and economic conditions. Local factors can also impact refinance rate trends in Colorado. Understanding these influences helps you stay informed about financial changes.
Refinancing your mortgage in Colorado can lead to lower payments and better terms. Understanding the steps involved is key to a smooth process. Explore how you can make informed decisions and potentially save money on your home loan.
Credit scores influence mortgage rates; a higher score can secure better terms. If your score is low, consider paying off debt or disputing inaccuracies. Colorado's average credit score is 731, so aim to improve if your score is below this.
Assess your current mortgage terms against market rates; Colorado's 15-year fixed is 5.06%, 30-year fixed is 5.82%. If these are lower, refinancing may save money. Consider your home-stay duration to ensure refinancing benefits outweigh the costs.
Compile essential documents like tax returns, pay stubs and bank statements for your current mortgage. This streamlines the refinancing process, ensuring lenders have all the necessary information to assess your application promptly.
Exploring different lenders can uncover better rates and terms. Look for competitive interest rates, low fees and positive customer reviews to find a lender that suits your refinancing needs.
Be aware of closing costs, such as appraisal fees and title insurance. According to the National Association of Realtors, the average closing costs in Colorado are $5,390.
Submit your application with all the required documents. Compare offers and select the best one. Pre-approval can simplify this step, providing a clearer picture of potential loan terms and rates.
Once approved, lock in your rate to avoid fluctuations. This ensures your rate remains stable until closing. Note that timing is crucial; locking in at the right moment can save money.
Review and sign all closing documents. Ensure all terms match your expectations. Bringing necessary identification and funds for closing costs can expedite the process, making it smoother and less stressful.
Begin payments as scheduled to avoid penalties. Setting up automatic payments can help ensure you never miss a due date, maintaining your credit score and financial stability.
Regularly assess your mortgage terms against market rates. If conditions change, refinancing again might be beneficial. Staying informed about market trends can help you make timely decisions, optimizing your financial situation.
In Colorado, how soon you can refinance a mortgage depends on the type of loan. For conventional loans, refinancing can occur immediately. However, a cash-out refinance requires a six-month seasoning period. USDA loans generally require a 12-month waiting period before refinancing.
The October refinance rate in Colorado dropped to 5.82%, which is a good example of when to refinance, as lower rates can make refinancing more attractive. Although you could refinance a mortgage within a year, it's often not worth it due to the additional closing costs that may take years to recover. It's essential to consider these costs and the potential savings from a lower interest rate to determine if refinancing is beneficial.
Refinancing your mortgage in Colorado can reduce monthly payments by lowering interest rates. However, be cautious of closing costs that might offset savings. Recognizing when to refinance a mortgage in Colorado ensures you reap financial benefits. Check these scenarios where refinancing could be a savvy choice:
Refinancing when interest rates drop can reduce monthly payments and total interest paid. To find the best rates, consult with local lenders and credit unions, who often offer competitive rates. Building relationships with these institutions can lead to personalized offers.
Refinancing when your home's value rises can improve home equity. Enhancing curb appeal or renovating kitchens can boost value. With Colorado's average home value at $550,511, you might secure better loan terms.
A higher credit score can unlock lower interest rates. Paying bills on time and reducing debt can boost your score. This improvement can lead to significant savings over the life of your mortgage.
Refinancing to a shorter loan term can reduce total interest and build equity faster. A 15-year term often has lower rates, saving money in the long run. This strategy is ideal for those who can afford higher monthly payments.
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can stabilize payments. Fixed rates protect against market fluctuations, offering predictable monthly expenses and long-term financial planning benefits.
Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.
Make sure refinancing your existing home loan will save you money.
Total Savings:
By refinancing, you’ll pay $0
Your credit score influences the rates you qualify for in Colorado. For example, the current average refinance rate for a 30-year fixed-rate loan with a loan-to-value ratio of 80% or lower equates to 6.96% for credit scores between 680 and 740, compared to 6.43% for scores above 740. See the table below for more details.
| 5.88% | 6.14% |
Loan type is another factor that can affect the rates you qualify for in Colorado. For example, the current average refinance rates in Colorado are 6.43% for a 30-year conventional fixed-rate loan and 8.11% for a 30-year fixed-rate FHA loan. The table below shows average APRs for different loan types in Colorado.
| 5.83% | 6.08% |
Homeowners in Colorado may be considering the implications of today's refinance rates. As these rates fluctuate, they can significantly affect mortgage payments and long-term financial plans, resulting in some questions. In this section, we've compiled answers to the most common inquiries about refinance rates in Colorado.
Refinancing your mortgage might be beneficial if it leads to lower monthly payments or a reduced interest rate. Consider your long-term financial goals and current market conditions before making a decision.
To secure the best mortgage refinance rate, you should improve your credit score and consider paying down your mortgage to reduce overall interest.
The pros of refinancing include potentially lower interest rates and reduced monthly payments. However, it may also involve closing costs and may extend the loan term, which can increase the total interest paid over time.
Refinancing a mortgage involves costs, such as appraisal fees, closing costs and possibly prepayment penalties. These costs can vary based on the lender and the specifics of the loan.
The current average refinance rates in Colorado are 5.87% for a 15-year fixed loan and 6.43% for a 30-year fixed loan. Rates in Denver are likely to mirror these state averages, although the rates you qualify for may vary depending on factors like credit score and loan-to-value ratio.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
