Refinance · Rate or Term
Rate-and-Term Refinance in Colorado
No cash out, no complications. A new rate, a new term, or the end of your mortgage insurance — whichever one actually saves you money.
Overview
The cleanest refinance there is, and the easiest to evaluate.
A rate-and-term refinance changes your interest rate, your loan term, or both, without increasing the balance beyond closing costs. It is the refinance with the clearest arithmetic: closing costs divided by monthly savings gives you a break-even in months, and if you plan to stay in the home past that point, it pays. Three situations make it worth a look in Colorado right now. You bought when rates were higher and they have since come down. You are carrying conventional PMI and your home has appreciated past 80% loan-to-value, which lets you drop the insurance. Or you are on an adjustable rate and want to lock a fixed one before the next adjustment. I will tell you the break-even month before you commit to anything.
Who it is for
A rate-and-term refinance fits if…
- Your current rate is meaningfully above what is available today
- You are paying conventional PMI and now have 20% equity
- You want to move from an adjustable rate to a fixed rate
- You want to shorten your term without a large payment increase
- You plan to stay in the home past the break-even point
- You are not looking to take cash out
Highlights
What it can do for the payment
Lower the rate
The obvious one. Every quarter point matters more the larger the balance.
Drop PMI
Conventional mortgage insurance ends at 80% loan-to-value. Appreciation can get you there early.
Shorten the term
Moving from 30 years to 20 or 15 often costs less per month than people expect once the rate improves.
ARM to fixed
Trade the uncertainty of an adjustment for a payment that never moves again.
Recast instead
Sometimes a lump-sum recast beats a refinance outright. If that is your situation I will say so.
Break-even first
Closing costs divided by monthly savings. If you will move before that month arrives, do not do it.
Want your break-even in writing?
Send me your rate, balance and roughly how long you plan to stay. You will get a straight answer. Call (303) 557-3846 or start online.