Looking for Low Refinance Rates in Colorado?
While COVID continues to relevantly impact economic activity across the nation as a whole, there may be a silver lining if you are a homeowner. Looking for Mortgage Lenders in Denver, Colorado? Here are the best tips for it.
Currently, Colorado refinances rates are extremely low, allowing current borrowers the ability to potentially lock in significant savings over the life of their loan, with typical terms stretching between 15-30 years.
Recently, the average U.S. 30-year fixed rate mortgage hit 2.72%, the lowest rate in almost 50 years according to aggregator Freddie Mac1.
In a recent report by Black Knight, the low rate environment that the market is currently experiencing will actually allow nearly 19.41 million homeowners to save by refinancing their home mortgage2.
But wait, it gets even better. The CoreLogic Home Price Insights report recently announced that home prices have increased year-over-year by almost 7%3.
This means that not only can you lock in a low-interest rate, but because due to market appreciation your Colorado home may actually be worth more than you realize.
How do you find low refinance rates in Colorado to get the most bang for your buck? Here are five ways borrowers just like you are leveraging low refinance rates to achieve their financial goals.
Paydown Your Principal
If you want to accelerate your savings and pay off your mortgage faster, consider putting any savings you might gain through refinancing directly toward your outstanding principal balance.
While you aren’t required to make more than the monthly payment, assuming your monthly payment goes down and you were comfortable where your payment was at before you refinanced, you could still pay the higher amount each month and shave years off your loan.
Also, most home mortgages do not have a prepayment penalty clause which means you won’t be penalized for paying more if you can afford it. Should something change with your finances you can always go back to making the minimum payment.
Complete Home Improvement Projects
Have you always wanted a pool, mud room, or to simply tear down that gaudy and dated wallpaper? You may want to do what many Colorado homeowners are doing and refinance to pull some of the added equity out of your home to be used toward completing home improvements.
Using your available equity in this manner is a great option because it also reinvests and adds value to your home. You also get the benefit of a more modern and updated dwelling that you can enjoy for many years to come.
Payoff Other High-Interest Debt
Low refinance rates offer the opportunity to pay off other higher-interest debt that can help rebalance your household budget and free up your monthly cash flow.
Not only does it consolidate your payments into one manageable monthly installment, but it can also help keep you from wasting your money towards accruing interest.
Buy More Real Estate
If you can financially afford it, refinancing while rates are low to help purchase another piece of real estate can be a wise decision. This is a great opportunity to expand your real estate portfolio.
Like many Colorado homeowners, you can use a cash-out refinance to purchase an investment property for cash which then you can then turn around and refinance to purchase another investment property and so on.
With refinance rates in Colorado being so low it may even be time to buy that perfect second home or vacation rental you have had your eye on.
Start a Business
Feeling extra ambitious? Have a hidden product or talent you have always wanted to try and monetize? Refinancing while rates are at near-record lows may be able to provide you with the cash you need to open your own business.
Using the money in this way can definitely be risky as there may be uncertainty of whether or not your new business will succeed or fail. But in the end, you may find that it is always a smart move to bet on yourself.
- Roha, A. (2020, November 19). Mortgage rates break the record again, down to 2.72%. Retrieved November 25, 2020.
- Roha, A. (2020, November 24). Low, low mortgage rates make 19.4 million eligible for a refi. Retrieved November 25, 2020.
- CoreLogic. (2020). U.S. Home Price Insights. Retrieved November 25, 2020.