Rocky Mountain High Interest Rates: Refinancing Your Denver Mortgage

By AJ Fanter
Local Lender Columnist
Oct 23, 2006
For the past few years, Adjustable Rate Mortgages (ARMs) have made a great deal of financial sense for most homebuyers, given that mortgage interest rates were at historically low levels.

However, with interest rates on the rise, and the distinct possibility that they may go even higher, it might be time to consider refinancing your Denver home.

Switching to a Fixed-Rate Mortgage

While there are many reasons to consider refinancing, switching from an adjustable rate mortgage to a fixed-rate mortgage can be quite appealing, particularly as interest rates begin to climb. The reason? A fixed-rate mortgage offers you a set interest rate over the life of the loan. In some cases, it may reduce your monthly mortgage payment.

Refinancing Considerations

However, having a fixed monthly mortgage payment isn't the only thing you should consider when refinancing your Denver home. It's also important to think about how long you intend to stay in your home. If you're not planning on living in Denver for more than a few years, it may not be worth the cost of refinancing your mortgage. Use an online refinancing calculator to help you "crunch" the numbers to see if refinancing is the right decision for you.

More Mortgage Options

As you consider your refinancing options, it's important to remember that a 30-year fixed-rate mortgage isn't the only kind of mortgage available for your Denver home. In fact, if you can manage a slightly higher monthly payment, you might want to consider refinancing to a 15-year fixed-rate mortgage, where you'll not only build up equity in your Denver property more quickly, but you'll pay substantially less interest over the life of the loan.

About the Author
AJ Fanter is a freelance writer based in Reno, NV.