If you live in Colorado this Colorado Refinance Guide will clear your confusions and will help you make a better decision!
Many Colorado residents are in a unique position for refinancing. Median home values in the centennial state have climbed dramatically – by over $100,000 – since 2012. Depending on your initial loan terms, and property value, you might have a significant amount of equity in your home. This is a perfect compliment to the current mortgage rates in Colorado (CO).
Current refinance mortgage rates in Colorado are comparable to national rates, which are low based on the historic averages. 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
There are a number of strategic reasons for a homeowner to refinance. Here are a few that might resonate with you:
- A homeowner’s credit score has improved since they secured their initial loan. This means they may be eligible for better loan terms.
- It is also common to consider refinancing if a homeowner needs extra cash to fund a special circumstance like college expenses, a special trip, a house renovation, or unexpected medical bills.
- The value of someone’s home has increased since they initially purchased, and interest rates are lower than original loan terms. This is a perfect combination for saving money or even using the cash-out option.
- Some homeowners use refinancing as a way to consolidate debt.
- Locking in a better mortgage rate may save money in the long-term, especially if the original rate was much higher, which is the case for many homeowners in Colorado who secured loans before 2008.
- A homeowner 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.