When Does Refinancing Make Sense in Colorado?
Refinancing in Colorado involves paying closing costs of approximately 1.3% of your loan balance to obtain a lower interest rate. The general rule: if you can lower your rate by at least 0.75–1%, refinancing is worth exploring. With Colorado's current average rate of 6.79%, the savings depend heavily on how far rates drop from your existing loan.
The break-even point is calculated by dividing total closing costs by monthly savings. For example, if refinancing saves you $200/month and costs $7,020, you break even in 35 months (2.9 years). If you plan to stay in yourColorado home longer than that, refinancing is likely beneficial.