Today’s mortgage and refinance rates in Colorado

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Buying a home in Colorado

According to Zillow, the typical home value in Colorado is higher than the US national typical value of $298,933. The typical home value in Colorado is $501,345, and home values have increased 19.1% over the past year.

Historic mortgage rates for Colorado

By looking at the average mortgage rates in Colorado since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:

Seeing how today’s rates compare to historic Colorado mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.

First-time homebuyer programs in Colorado

As a first-time homebuyer in Colorado, you might qualify for the following financial assistance:

• Colorado Housing and Finance Authority may give you a grant for a down payment or closing costs if you get a mortgage through a participating lender. You can receive up to 3% of your home loan amount, and you don’t have to pay back the loan.
• Aurora Home Ownership Assistance Program: if you live in Aurora, you can apply for this program which lends you up to $10,000 for a down payment or closing costs.
• Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan.
• United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.
• Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.

Refinancing your mortgage in Colorado

Rates are at historic lows right now, so it could be worth it to switch your current mortgage for one with a lower rate – especially if the new rate would be significantly lower.

You don’t necessarily need to refinance with the same lender you used for your initial mortgage. A different company may offer you a better deal this time around. Shop around for a lender who will offer the lowest rate based on your credit score and debt-to-income ratio, and the one that charges relatively low fees.

How to get a low interest rate on your mortgage

Here are some tips for landing a good interest rate on your mortgage:

• Save for a down payment. With a conventional loan, you may be able to put down as little as 3%. But the higher your down payment, the lower your rate will likely be. Rates should stay low for a while, so you probably have time to save more.
• Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But the higher your score, the better your rate will be. To improve your credit score, be sure to pay all your bills on time. You can also pay down debts or let your credit age.
• Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less, but an even lower DTI can result in a better rate. To improve your DTI, pay down debts or consider opportunities to increase your income.
• Choose a federally backed mortgage. If you’re eligible, you might consider a USDA loan (for low-to-moderate income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. As a bonus, you won’t need a down payment for USDA or VA loans.

Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.

Mortgage and refinance rates by state

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming

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