CO Refinance

We are now in a great time for refinancing. Refinance rates are in historical lows, and you can take advantage of that for your Colorado refinance. You would be able to save hundreds of dollars:

  • Lower monthly payments.
  • Get cash for home improvements.
  • Get better/lower rate.
  • Pay your bills.

As refinance rules constantly change, it would be advisable to take action now while government funded programs and low rates are still available.

But finding the best CO refinance is not an easy job, with hundreds of lenders out there it can be difficult to decide. You should shop around and compare lenders for your CO refinance:

1. Research CO lenders

This can be done visiting local Colorado mortgage lenders or directly online. We recommend to do it online because is faster, easier and they have very good rates.

2. Take note of rates

For each lender, take note of their offer. The most important points are:

  • Interest rate
  • Length of rate lock
  • Closing costs, including appraisal fees, application fees, loan origination fees. Also check for hidden costs like document fee or notary fee, so you can compare true costs.

3. Determine your home value

The lender will determine the value of your house in Colorado, but it doesn’t need to be a formal appraisal (you need to pay for it). It can be done with the Automated Valuation Model (AVM). It simply takes into account the value of the properties around you to determine your value. This usually is enough to support your CO refinance.

4. Calculate your break even period

The break even period is the closing costs divided by the amount of money you will save on your new monthly payment. The result is how long will take you to break even.

For example, I could find a CO refinance that will save me $60 per month, great! but if the closing cost is $6000, it would take me 100 years (6,000/60) to break even, so the offer is not that great.

A good way to determine if the break even time is good for us is to take into account the date that we expect to leave the house in Colorado. If you plan to stay in your house after the break even period, that means that you should save money overall and you CO refinance is worth.

5. Review your documents

Make sure you check and understand all documents before you sign them. Read the terms and conditions and all the small print. Ask the lender for all questions you have before sign any paper.

Good luck with your CO refinance!

 
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