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Colorado Mortgage and Refinance Rates
Current mortgage rates in Colorado
As of Sunday, August 25, 2024, current interest rates in Colorado are 6.46% for a 30-year fixed mortgage and 5.88% for a 15-year fixed mortgage.
The median single-family home sale price in the state was $599,000 as of June 2024, according to the Colorado Association of Realtors — a 3.1 percent year-over-year (YOY) jump that nears the state’s all-time high. Those gains, plus today’s high mortgage rate environment, continue to make housing affordability a challenge.
Refinance rates in Colorado
While mortgage refinance rates have more than doubled since the pandemic, many Colorado homeowners have much more tappable equity now. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.
Colorado mortgage rate trends
The Federal Reserve seems poised to cut rates at its next meeting in September, which will push mortgage rates down. However, a small rate cut likely won’t translate to big relief for buyers in Colorado.
The current rate environment is hampering buying activity in the state, which is paving the way to a more balanced market. The number of active listings is up by more than 22 percent YOY, while the number of sold listings has dropped by more than 14 percent, according to June 2024 data from the Colorado Association of Realtors. Homes are taking five days longer to sell, too. However, that doesn’t mean it’s any easier to actually buy one: The affordability index — a reflection of how easy it is for someone in a particular area in Colorado to afford a median-priced home based on certain factors — has declined nearly 4 percent YOY.
National mortgage rates by loan type
Product | Interest Rate | APR |
---|---|---|
30-Year Fixed Rate | 6.51% | 6.56% |
15-Year Fixed Rate | 5.91% | 5.99% |
5-1 ARM | 6.05% | 7.28% |
30-Year Fixed Rate FHA | 6.54% | 6.58% |
30-Year Fixed Rate VA | 6.61% | 6.66% |
30-Year Fixed Rate Jumbo | 6.63% | 6.68% |
Rates as of Sunday, August 25, 2024 at 6:30 AM
Mortgage statistics for Colorado
Colorado’s home prices have registered robust appreciation for years. Here are some statistics about mortgages and the housing market in The Centennial State:
- Median single-family home sales price, June 2024: $599,000
- Median condo/townhome sales price, June 2024: $419,900
- Housing inventory, June 2024: 22.3% higher YoY
- Homeownership rate, Q4 2023: 67.2%
Sources: Colorado Association of Realtors, U.S. Census Bureau
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 of 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), 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 guaranteed 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 ranges from 1.25 percent to 2.15 percent to start.
- Colorado jumbo loans: If you’re looking to buy a more expensive property — many of which exist in luxury mountain towns like Aspen, Vail and Telluride — you may want to look into jumbo loans. These mortgages exceed the conforming loan limits and typically require down payments of 10 percent or more and a credit score of at least 680, although requirements vary among lenders.
First-time homebuyer programs in Colorado
The Colorado Housing and Financing Authority (CHFA) helps connect first-time homebuyers to more affordable loans, as well as down payment or closing cost assistance or both. Last year, the CHFA provided more than 5,600 customers with $2 billion in new loans and $76 million in down payment assistance. The typical CHFA-approved borrower had a credit score of 689. Here’s an overview of the organization’s offerings:
- 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, your income must be within CHFA guidelines and your credit score must be at least 620. You also must attend an approved homebuyer education course and contribute at least $1,000 toward the home’s purchase.
- CHFA Down Payment Assistance: Depending on what you qualify for through the CHFA, you might be eligible for a grant of up to $25,000 or 3 percent of your mortgage (whichever is less), or a deferred second mortgage for up to $25,000 or 4 percent of your first mortgage (again, whichever is less). You don’t have to repay the grant.
Keep in mind that the state’s housing authority isn’t the only option for assistance. Some local programs are available to help low- and moderate-income buyers — including first-time buyers — too. For example, metroDPA is a down payment assistance program for homeowners looking to buy along the Front Range of Colorado.
How to find the best mortgage rate in Colorado for you
- 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 credit score if needed.
- Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
- Step 3: Know your mortgage options - There are a few different types of mortgages.
- Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
- Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Lender compare
Compare mortgage lenders side by side
Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.
![Garden State Home Loans](https://www.brimg.net/system/img/inst/7950_hires_logo.png)
Garden State Home Loans
NMLS: 409701
|
3.6
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
5.0
![Homefinity](https://www.brimg.net/system/img/inst/10438_hires_logo.png)
Homefinity
NMLS: 2289
|
State License: 4965
4.5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
4.9
Additional Colorado mortgage resources
- Colorado loan limits by county: Learn the conforming loan limit for your city or town.
- Colorado mortgage lenders: Explore mortgage lenders in your state.
- Best places to live in Colorado: These are the top spots to call home.
- How to buy a house in Colorado: Get set up for a successful house hunt with this guide.
- Cost of living in Colorado: Get a sense of how much you’ll spend or save.
- Homeowners insurance in Colorado: Compare policies from a variety of providers.
- Bankrate mortgage calculator: Determine how much that home will cost you.
Meet our Bankrate experts
Written by: Jeff Ostrowski, Principal Reporter, Mortgages
I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.
Edited by: Laurie Dupnock, Editor, Home Lending
I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.
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