Mortgage rates in Colorado

Quick insights

• A low interest rate on your mortgage can help make buying a home more affordable, month-to-month and over the lifetime of your loan.
• Many factors influence the current mortgage rates in Colorado, including the type of mortgage, the current federal funds rate and broader market conditions.
• Rates are updated frequently by zip code; consider searching for the current mortgage rates in the area where you want to buy a home.

For many homebuyers, finding the latest interest rates for mortgages is a major priority within their process. Not only can a lower interest rate make your monthly mortgage payments more affordable, but it can also affect the amount you pay over the lifetime of your loan. In this article, we’ll explain what shapes current mortgage rates in Colorado, including both personal and economic factors. We’ll also point you in the direction of up-to-date resources to help inform your own homebuying process.

How to find Colorado mortgage rates

Colorado is a large state with varying interest rates depending on where you’re looking to buy a home. There are various options to search for rates. For instance, enter your zip code to view current mortgage rates in your area. We update our interest rate table every day, Monday through Friday. Our mortgage calculator can also help you get a customized rate and payment estimate. Keep in mind, refinance rates tend to be slightly different; view our mortgage refinance ratesec-refinance-hl000061 for that information.

For personalized assistance, you can also get in touch with a Home Lending Advisor in Colorado. Finally, getting preapproved for a mortgage can provide insight into mortgage terms tailored to your specific situation.

U.S. mortgage rate trends

Current 30-year mortgage rates have been between 5% and 10%, and here’s a snapshot of the annual averages for 30-year fixed-rate mortgage rates since 1971:ec-fred-stlouis-25

• 1974: 9.19%
• 1982: 16.04%
• 1990: 10.13%
• 1998: 6.94%
• 2006: 6.41%
• 2014: 4.17%
• 2020: 3.11%
• 2024: 6.72%

How are interest rates calculated?

There’s a lot that goes into calculating the mortgage rates you’re ultimately presented with when you apply for a mortgage. While some aspects relate to broader market conditions, many rely on details found in your personal financial profile.

Market conditions

The Federal Reserve (sometimes referred to as “the Fed”) influences economic activity in all states when they adjust the federal funds rate. This rate directly affects borrowing costs for banks. When the federal funds rate increases, banks also tend to follow suit and increase rates for various financial products, including mortgages. If you’re trying to time your purchase with rate changes, keying into news from the Fed can help inform your decision.

Personal factors

Lenders typically request several documents and details about your financial situation when you apply. This information, coupled with the type of loan you’re pursuing, allows the lender to draw conclusions about your likelihood of repaying the loan—a kind of risk assessment that informs your interest rate. Lenders may consider your:

• Credit score: An applicant’s credit score tends to be a significant factor in the interest rates they’re presented with for a mortgage. Having a solid credit history improves lenders’ confidence that you'll make timely monthly payments if approved for the loan.
• Debt-to-income (DTI) ratio: Having a large portion of your monthly income dedicated to repaying existing debt may make a lender less inclined to issue a loan. If approved, a person with a high DTI may be approved for a loan with a higher interest rate.
• Down payment: Proposing a larger down payment lessens the overall mortgage amount and therefore decreases the lender’s risk. With a larger down payment, you may see lower interest rates; Conversely, making a smaller down payment could lead to higher interest rates.
• Income: Your income level could influence mortgage opportunities and interest rates you qualify for. Someone with a substantial income may be more likely to be approved for a larger loan with a lower interest rate, given other aspects of their financial profile are in order.

How mortgage type can impact your rate

Different kinds of loans have varying features which can impact how interest rates apply. The term, purpose of the loan and other aspects may influence its rate. Types include (but are not limited to):

• Fixed-rate loans: A common mortgage type has one set rate for the loan’s entire duration. This results in an arrangement with predictable monthly payments that may be simpler to accommodate in one’s budget.
• Adjustable-rate mortgages (ARMs): ARMs are typically structured with a fixed introductory rate period, followed by an adjustable-rate period that fluctuates with the market.
• Federal Housing Administration (FHA) loans: FHA loans are insured by the federal government, which may allow certain individuals to qualify for low rates not possible with a conventional loan.
• Veteran’s Affairs (VA) loans: VA loans are designed to help active duty servicemembers and retired veterans buy homes with more affordable rates and terms.
• Jumbo loans: Larger than a typical loan, jumbo loans allow qualifying individuals to borrow for a more expensive home purchase. Rates on these loans tend to be higher than those seen with conforming loans.

How rates affect affordability

Interest rates are often a priority for homebuyers because they can significantly influence both your monthly payment and the lifetime cost of your loan. For example, a $560,000 loan with a 20% down payment and 30-year term could have very different financials depending on your interest rate:

• With a 6% interest rate: Estimated monthly costs would be $2,683.18, with a total cost of $965,944.80 over the lifetime of the loan.
• With an 8% interest rate: Estimated monthly costs would be $3,278.54, with a total cost of $1,180,274.40 over the lifetime of the loan.

While these are just quick examples, it can be helpful to experiment with a mortgage affordability calculator to improve your understanding of home financing with figures relevant to your budget. By running different calculations, you can see how adjusting the details of a potential loan (such as interest rate, term and down payment) may influence costs when you’re ready to buy.

In summary

Buying a home can be an exciting endeavor that changes how you live your life and manage your finances. While the average mortgage rates in Colorado change frequently, checking the current mortgage rates by zip code and connecting with a local Chase Home Lending Advisor can help bring them into focus.