4.25% 30 Year Fixed Rate
Loan Amount
Loan Type

Program Rate APR
30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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Poor Economy Equals Low Rates

While the poor economy has led to high rates of unemployment and an overall low consumer sentiment, one benefit of the recurring recession has been that interest rates on mortgages have continued to be historically low. Homeowners and new home buyers in Denver, and all other markets across the country, could save a lot of money by taking advantage of the cheap mortgage rates. In fact, rates are so low, that many people with existing mortgages could save thousands of dollars per year in the form of reduced interest payments.

While Denver mortgage rates are extremely low, actually qualifying for a new mortgage and the low rates has become increasingly more difficult. For the past few years, banks have had to deal with historically high rates of mortgage defaults and the dropping housing prices has caused many banks to incur significant losses. Because of this, banks have taken many steps to reduce the risk on the loans that they are providing to borrowers.

One way that banks have reduced their risk is by requiring borrowers to have a good credit score. A few years ago, banks were willing to give mortgages to people that had weak credit histories. Ultimately, many of these borrowers with poor credit scores ended up defaulting on their loans. Because of this, banks now require that their borrowers have very good credit scores to even qualify for a loan. To qualify for the historically cheap mortgage rates, borrowers will need to have a credit score of 740 or better. Those with a score of 680 or better will likely be approved for a loan, but they will have to pay a higher interest rate.

Denver mortgage rates and mortgage rates across the country are also affected by a borrower’s debt-to-income ratio. Banks place a significant amount of reliance on a person’s debt-to-income ratio in order to determine whether the borrower can actually afford to make the mortgage payments over a recurring period of time. If a borrower has a housing debt-to-income ratio, which is calculated as total monthly housing payments divided by their gross monthly income, of over 28%, they will have a hard time qualifying for low rate mortgages.