In the past 30 years, Denver mortgage rates have ebbed and flowed massively in a financial tide of home loan offerings. Near the beginning of the 1980s, for example, interest rates for regular 30 year, fixed rate mortgages were right around 18 percent. Today, though, we see interest rates for exactly the same type of loan in the neighborhood of 5% – and even as low as, in the 4 percent range.

Many Denver home owners who bought their homes when interest rates were sky high are now seriously thinking about a Denver refinance so as to reap the benefit of today’s lower rates. If you’re among these people, know that there are some expenses that will be involved in refinancing your home mortgage, such as a home appraisal, getting title insurance, and a loan origination fee, just to name some. To calculate if these expenses will off set with the potential money you may be able to save by refinancing, you can use the general rule of thumb referred to as the 2 percent rule.

In plain English, this rule recommends that the percentage difference between the current rate you have on your loan and the new rate being offered should be at least 2 points. If you were one of those those who borrowed in the 80s who bought a rate in the double digits (and today you can get a rate around 5%), it would make pretty good sense to refinance.

What you’ll find below are three advantages why people are refinancing in Denver with a lower rate:

1) Lowering monthly payments – By lowering the rate of your loan, you will see a major difference in what you pay for your mortgage each month. And, every little piece adds up. Some people who refinance have saved thousands and thousands of dollars over the lifeof their loan period. How much you save, though, completely depends on your specific numbers. So, make sure to speak to a mortgage advisor who is capable to do the number crunching for you to determine how much you will be able to save by refinancing.

2) Changing the kind of loan you hold – Some people make the decision to refinance in Denver even if they won’t save any money by doing so. Consider of the large number of people who got an ARM (Adjustable Rate Mortgage). We’re a lot of these people refinancing just to change to the fixed rate mortgage. At the same time, some people who have a balloon included in their mortgage choose to refinance when it gets nearer to the time to make that bulk payment.

3) Extracting money from your equity – If you have been in your house for ten years or more, you probably have a significant bit of equity because of the overall Denver home appreciation (even with the current reduction in house values) and to the fact that you have made those payments every month for quite a while now. This is why some folks choose to withdraw money out when they refinance their loan so as to help with retirement or with their children’s college expenses.

If you’re considering refinancing your Denver home mortgage, be sure to talk to a seasoned loan officer – someone with a lot of experience specifically in refinancing who can sit with you and review your situation and your numbers and the the various options you have. And know, that each situation is different. Your lender should inquire about short-term and long term benefits (or consequences) that are specific to you and targeted towards your financial future.

So again, I remind you; If you’re waiting on the sidelines waiting for the Denver refinance market to get better… it’s time to jump in now!  Denver mortgage rate are nearing historic lows.  There’s never been a better time than right now to get your Denver home loan.