You hear interest rates dropped and you wonder if you should take advantage of the low mortgage refinance rates in Colorado? It feels like everyone is, so you should jump on board too, right?

Possibly and if you are ready, we are happy to help you. But before you do, here are some things to consider if refinancing is right for you. As it’s not right for every situation.

Are you Staying Put?

Your plans for the future determine if it makes sense to refinance. Since refinancing costs money. If you’re moving soon, it may not make sense to take advantage of today’s low mortgage refinance rates.

Typically, staying in your home for 5 years is a good break-even point, but every situation differs. Look at the costs to close the loan and compare it to the monthly savings. How many months will it take to pay off the closing costs with the savings?

If you don’t have plans to move, taking advantage of today’s low rates can save you thousands of dollars over the life of your loan. If you aren’t sure how to determine if it makes financial sense to refinance, I’d be happy to crunch the numbers with you to help you understand.

Do you Need Equity from your Home?

If you plan to renovate your home or need your home equity to cover debts or even be an emergency fund, now is a great time to take advantage.

You’ll need to leave 20% equity in your home. But if you have decent credit and an average debt-to-income ratio, you may qualify to take out a portion of your home’s equity. And use it how you see fit, whether you’ll reinvest the money back into your home or use it for another purpose.

A cash-out refinance may offer a lower interest rate and/or better terms than you’d get if you needed a second mortgage, plus you get the benefit of having only one mortgage to worry about each month.

Do you Have an ARM and Want a Fixed-Rate Loan?

If you took an adjustable-rate loan (ARM) originally, you may want to take advantage of today’s low mortgage refinance rates in Colorado and lock in a rate. With a fixed-rate loan, you don’t have to worry about changing interest rates or worrying if you’ll be able to afford your payment.

Even if you’re still in the introductory period of your ARM, you can refinance into a fixed-rate loan. Put the worries of adjusting rates behind you.

Final Thoughts

If you’re thinking of taking advantage of today’s low mortgage refinance rates in Colorado, let me help you! I work closely with my borrowers, ensuring everyone gets the loan that makes the most sense for them. I won’t tell you to refinance just because rates dropped. I’ll show you how it financially makes sense and will benefit you not only today but in the long-term too.