Colorado Mortgage and Refinance Rates
On Saturday, June 10, 2023, the national average 30-year fixed mortgage APR is 7.08%. The national average 30-year fixed refinance APR is 7.18%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
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Current mortgage rates in Colorado
As of Saturday, June 10, 2023, current interest rates in Colorado are 7.16% for a 30-year fixed mortgage and 6.53% for a 15-year fixed mortgage.
High home prices can impact the type of loan and down payment you’ll need if you’re getting a mortgage in Colorado. As of April 2023, the median sale price for a single-family home in the state was just over $565,000, according to the Colorado Association of Realtors. The conforming loan limit is set at $726,200 in most areas (though slightly higher in Denver County and other more expensive areas) for 2023. (See the complete list of Colorado conforming and FHA loan limits.)
While interest rates no longer are at rock-bottom levels, you might be able to do a cash-out refinance to pay for renovations. You can use Bankrate’s mortgage refinance calculator to run the numbers.
Refinance rates in Colorado
Colorado borrowers who saw their home equity rise during the pandemic might be interested in refinancing their mortgage as a way to tap those funds. Check out Bankrate’s guide to cash-out refinancing to learn more.
How to find the best mortgage rate in Colorado for you
When shopping for a mortgage, compare at least three loan offers — research shows this exercise can save you thousands of dollars over the life of a loan.
Bankrate can help you find the best mortgage deal. Here are some basic steps to securing a loan with favorable terms:
Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.
Step 2: Determine your budget
To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.
Step 3: Know your mortgage options
There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement.
Step 4: Compare rates and terms from several lenders
Don’t settle on the first lender you talk to — rate-shop with at least three different banks or mortgage companies. You can look to your bank or other banks, credit unions, online lenders and local independents to ensure you’re getting the best deal on rates, fees and terms.
Step 5: Get preapproved for a mortgage
As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Mortgage options in Colorado
Known for its outdoor activities and diverse economy, Colorado has experienced strong growth in home prices. If you’re looking to get a mortgage in Colorado, there are several options:
- Colorado conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
- Colorado FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
- Colorado VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers.
First-time homebuyer programs in Colorado
The Colorado Housing and Financing Authority (CHFA) offers loans and down payment and/or closing cost assistance for qualifying first-time homebuyers. Here’s an overview:
- CHFA Home Purchase Loans: These loans are available through partnering lenders and offer affordable rates, low (or no) mortgage insurance, closing cost support and free homebuyer education classes. To qualify, buyers must have an income that falls within CHFA guidelines, a mid-credit score minimum of 620, attend an approved homebuyer education course and contribute at least $1,000 toward the home’s purchase.
- CHFA Down Payment Assistance: This down payment grant can cover up to 3 percent of the amount of a 30-year CHFA mortgage. (The money can also be used to cover closing costs.) The grant does not have to be repaid.