Colorado Mortgage Rates

Denver ranked 10th on the list of 2017’s best places for first-time homebuyers as surveyed by personal finance site WalletHub. Another report by the same site ranked the Colorado capital and most populated at that as the second most-recovered large city post-Recession. The state’s housing market overall got a 10/10 health rating by Zillow as of August 31, 2017.

Against this backdrop, long-time settlers and new faces looking to live in Colorado can expect to finance their purchase or refinance with an array of mortgages. With each loan product is a different mortgage rate.

What Moves Mortgage Rates in Colorado

Homebuyers and refinancers in Colorado have various options when it comes to achieving their homeownership goals, as noted below.

Fixed-rate mortgages can have higher rates than adjustable-rate mortgages whose rates can go even lower at the start of the loan. It’s a choice between stability and susceptibility to market forces.

If you opt for a 30-year fixed-rate mortgage instead of a 20-year or 15-year, your rate will be higher but this is offset by lower monthly payments spread out over three decades.

The mortgage rate is also higher on bigger loan amounts. Saving for a larger down payment and buying discount points are ways to lower the mortgage rate.

Other mortgage loans aside from the traditional 30-year FRM are available in Colorado.

• Hybrid ARM plans start out at a fixed rate but after one, three or five years they return to a fully amortizing ARM loan.
• Jumbo loans for those who want to borrow more than the conforming loan limits, e.g. $636,150 in Eagle County.
• Interest-only mortgages for those who want to pay as little as the interest cost of the loan.
• Second mortgages for those who want to make a 20-percent down on conventional loans to avoid mortgage insurance.

Your credit score is also a major factor when lenders decide your rate but depending on your loan program, you could still get a good rate despite a middling score. Find out what lenders have to say. Visit mortgagesum.com to find mortgage rates where it matters.