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Keys to Refinancing in Denver

By Allison E. Beatty
Local Lender Columnist
Nov 15, 2006
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Want to lower your monthly mortgage payment, or take cash out to improve your Denver home? There are many ways to refinance your existing mortgage. Here's where to start:

Consider Goals for Refinancing

As you shop for refinancing programs, consider your goals. Do you want:
  • Lower monthly payments.
  • Cash from your home equity.
  • More stability with a fixed-rate mortgage.
  • To wrap a home equity loan into a larger 15 or 30-year mortgage.

Many Denver Mortgages for Refinancing

If it's been a while since you took out a mortgage, you'll be overwhelmed with new mortgage loan programs. Among the popular options are:
  • Fixed-rate mortgages – Lock in a low rate instead of chancing the market.
  • Adjustable rate mortgages – Enjoy low initial rates that increase over time.
  • Hybrid mortgages – Combine adjustable and fixed interest rates. The rate may remain locked for three to five years, and then adjust annually.
  • Mortgages with cash out options – Take extra cash out for other expenses.
  • Interest-only mortgages – Pay only interest for an introductory period. Good for investors or short-term borrowers, but not recommended for the long term.

Check Interest Rates Carefully

Interest rates still are at historic lows, making it easy for you to refinance an older mortgage and come out ahead financially. Make sure to account for other variables, including:
  • Mortgage loan costs.
  • Penalties for paying off an existing loan early as part of your refinancing.
  • Your current and future financial situation, including expected job changes and large expenditures.
Before committing to refinance, check each lender's programs carefully. There are many Denver mortgage lenders with flexible programs, but not all lenders are the same. Look for:
  • Prompt and courteous service.
  • Low fees.
  • Flexible loan programs.
  • Low documentation mortgages, which mean a quicker application process and less paperwork for you.


About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.