Best Mortgage Rates in Denver, CO

Denver is an economic and cultural leader in the Mountain West region of the U.S., with a real estate market that indicates its desirability among families, professionals, and many other groups. The median value of a home in Denver was $424,700 in December 2018, according to real-estate data aggregator Zillow.

That’s significantly higher than the $302,400 national median home value reported by the U.S. Census Bureau in November 2018. With Zillow projecting 4.9 percent growth over the next 12 months, the importance of securing a cost-effective mortgage can’t be ignored.

Understanding the personal, local, regional, and national economic factors that impact the real estate market is vital for finding a cost-effective mortgage. In Denver, the strong and diverse economy, status as a regionally leading city, and overall long-term decreases in unemployment all play a role in rising real estate costs.

National economic factors like steady stock market growth and strong employment numbers also play a role in the current housing market. Having a better understanding of these elements as well as your own personal financial situation is critical when seeking a mortgage that meets one’s needs and financial situation. Read on to learn more about how to find the best mortgage rates and loan options in Denver.

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Elements That Affect Rates in Denver

A home loan’s specific terms and conditions are affected by many different factors, both in the Mile-High City as well as across the country. From the type of home loan you choose to your financial history, not to mention local and national economic conditions, there are plenty of elements to keep in mind.

Having thorough information about in Denver can help you make an informed decision that puts you in a strong financial position over the life of your loan. Because mortgages regularly involve large amounts of money and can span a period of up to 30 years or more, it’s important to weigh your options carefully. Understanding these four critical mortgage components can help you get started:

Term of Loan

The length of your mortgage can have a major impact on your finances. Whether you choose an adjustable- or fixed-rate mortgage, a jumbo loan, a government-backed option, or another loan product, the loan term will a substantial influence on both your monthly payments and the overall cost of the loan.

Lenders typically offer more favorable interest rates on loans with shorter terms, which means the total cost of the loan will be lower, but monthly payments will be higher. A longer mortgage term frequently leads to lower monthly payments, which can be more manageable for those on a tight budget but will have a higher overall cost.

Weighing your loan term options and having a clear understanding of your financial situation should be the first step in your mortgage comparison process.

Term of refinancing

The term of your refinanced loan is just as important as that of your initial home loan, as it will affect both monthly payments and overall costs. Refinances can span a wide range of terms, from less than 5 years to over 30 years. Because refinance loans have a variety of applications, it’s especially important to keep the mortgage term in mind as you seek out a provider.

Refinancing to achieve a lower interest rate and the shorter term can lead to significant total savings. The Federal Reserve points out the difference between interest owed on a $200,000 fixed-rate loan when the rate and term change from 6 percent and 30 years to 5.5 percent and 15 years is more than $135,000. This is just one way a mortgage can be refinanced to benefit the borrower.

Type of Loan

The type of loan you choose can drastically change everything from the minimum down payment required to the total interest paid over the life of the loan. Fixed-rate mortgages offer a predictable interest rate throughout the loan term, making it easier to budget. The downside, however, is that borrowers could miss out on market changes that can reduce prevailing rates and lower monthly payments.

An adjustable-rate mortgage, on the other hand, offers a fixed introductory rate, but then adjusts on a set schedule according to market fluctuations. This approach could lead to increased or reduced interest payments, depending on broader economic factors.

Specialized loans offered by government agencies, like those insured by the Federal Housing Administration and Department of Veterans Affairs, have stricter qualification requirements but also provide advantages in terms of interest rates, minimum down payments, and much more.

Type of Refinance

The desired outcome of a  can vary greatly, from turning some of the home’s equity into liquid funds to finding a more favorable interest rate or term. A cash in refinance can reduce the total cost of a mortgage through an inflow of cash from the homeowner and improve the loan-to-value ratio.

In turn, a cash-out refinance can increase the loan’s total cost but takes some of the home’s equity and converts it to available cash. Other types of refinances help homeowners avoid bankruptcy or negative equity, and are more of a need than an option. Make sure to have a clear underlying motivation for seeking out a refinance loan before committing to one.

How to Get the Best Rates in Denver

The most effective way to find the best mortgage and refinancing rates in the Queen City of the Plains requires some time and effort but is neither complex nor particularly detailed. Comparative shopping, the relatively simple act of seeking out information and prices from a variety of lenders before making a final decision, is an effective approach.

Without understanding what different mortgage providers have to offer, it’s unfortunately easy to miss out on the best possible offers. Making a decision to compare providers, rates, terms, and different types of mortgages provide key information that can lead to a better final decision.

Despite the power of comparative shopping, the Consumer Financial Protection Bureau pointed out that nearly half of all prospective homebuyers in the U.S. don’t take this step.

How can you make sure your comparative shopping efforts have positive results? Start by seeking out quotes and pre-approval from a variety of lenders. Don’t limit yourself to mortgage providers that have an entirely online process, as a few phone calls to other lenders will help you gain a more complete picture of your options.

Carefully review the pros and cons of each offer and know your priorities before opting for any one lender or loan product.

As the process reaches its end, don’t ignore the opportunities to reduce the many costs and fees involved in finalizing the mortgage. Not every all costs can be negotiated, especially those charged by government agencies. However, a variety, from the loan origination fee to the title search, can potentially be reduced or eliminated completely, depending on the lender.

Recommended Companies in Denver

There are plenty of choices when it comes to home loan lenders in and around Denver. Some of the top options include:

  • J.G. Wentworth: With plenty of experience providing home loans and a wide range of mortgage offerings, J.G. Wentworth provides a direct lending experience, meaning you work with a single lender from start to finish. J.G. Wentworth also as a strong, positive reputation for providing good customer service and supporting its borrowers. Its headquarters location in Woodbridge, Virginia, is accredited by the Better Business Bureau and has an A+ rating.
  • Quicken Loans: As an online mortgage marketplace, Quicken Loan makes comparative shopping easy by providing streamlined access to different lenders through a single platform. Quicken Loans is an industry leader and has the highest rating in our internal review of mortgage companies, earning a 9.8/10 according to our in-depth assessment. Applying for quotes online can help you find out important information about the lenders and loan products that meet your needs and financial profile.
  • NBKC Bank: A direct lender, NBKC Bank provides onsite origination, processing, underwriting, closing, and funding. With an assortment of conventional, VA and FHA loans available, many different borrowers have the opportunity to find a home loan option that aligns with their needs. A strong reputation for customer service and useful mobile apps are two additional advantages of working with NBKC.​
  • Ally Bank: With an exclusively online presence, Ally Bank offers a number of tools, resources, and processes that are easy to complete anywhere a prospective or current borrower has access to the internet. Competitive rates, an array of home loan options and consistently strong customer service are all advantages for those who choose to work with Ally Bank.

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