Questions about refinancing your mortgage?
Refinancing your mortgage can be a helpful option for some homeowners, but it’s not the right choice for everyone. Understanding how refinancing works — and whether it makes sense for your situation — can help you make a confident financial decision.
Mortgage refinancing typically involves replacing your current mortgage with a new loan that has different terms. This may allow homeowners to reduce their monthly payments, adjust the length of their loan, or take advantage of lower interest rates.
Colorado Housing Connects can help homeowners explore available housing counseling resources and better understand their mortgage options. Speaking with a HUD-approved housing counselor can help you evaluate whether refinancing is a good fit for your financial situation before taking the next step.
Refinancing Help
When refinancing may help
Refinancing may be worth considering if you want to:
In some cases, refinancing can help homeowners make their monthly housing costs more manageable. However, refinancing also involves fees, closing costs, and financial considerations that should be carefully reviewed before making a decision.
Understanding refinancing costs
Homeowners may want to consider factors such as:
Steps to evaluate refinancing
If you’re considering refinancing but aren’t sure if it’s the right move, the steps below can help you better understand your options.
Step
1
Talk with a housing counselor
Sit down with a HUD-approved housing counselor to review your financial situation and goals. Housing counseling services can help you understand mortgage terms, evaluate refinancing options, and determine whether refinancing is a smart financial decision.
Many housing counseling services are available at little or no cost.
Step
2
Contact your loan servicer
Your loan servicer can help explain your current mortgage terms and provide information about refinancing options that may be available based on investor guidelines.
You may also choose to speak with mortgage lenders or brokers to compare different refinancing products and loan options.
Step
3
Review the numbers carefully
Before refinancing, review the full financial picture. Compare your current mortgage with the proposed refinancing terms to determine whether the new loan will truly benefit your long-term financial situation.
Understanding the full cost of refinancing — including fees and the length of the loan — can help you make a more informed decision.
