Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated October 20, 2026

Reviewed for accuracy by senior mortgage advisors • Rates verified against Freddie Mac PMMS®

Eliminating PMI with a Colorado Conventional 1st Mortgage Refinance

As of June 19, 2026, according to Freddie Mac's Primary Mortgage Market Survey®, the 30-year fixed mortgage rate is 6.47%, and the 15-year fixed rate is 5.81%. (as of June 19, 2026, according to Freddie Mac PMMS)

For homeowners in Colorado with a credit score of 700 or higher, established income, and a down payment of 10% or more, refinancing your conventional mortgage presents a strategic opportunity to eliminate Private Mortgage Insurance (PMI) and potentially secure a more favorable interest rate.

What Are Today's Mortgage Rates in Colorado?

Understanding current mortgage rates is crucial when considering a refinance. Here's a snapshot of the prevailing rates:

Loan Type	Interest Rate	Weekly Change
30-Year Fixed	6.47%	-0.05%
15-Year Fixed	5.81%	-0.03%

These rates reflect a slight decrease from the previous week. (as of June 19, 2026, according to Freddie Mac PMMS)

Securing a lower interest rate can lead to significant savings over the life of your loan, making refinancing an attractive option.

Steps to Eliminate PMI with a Conventional Refinance

Eliminating PMI can result in substantial monthly savings. To achieve this through a conventional refinance:

Assess Your Home's Current Value: Obtain a professional appraisal to determine your home's current market value.
Calculate Your Loan-to-Value (LTV) Ratio: Divide your current loan balance by your home's appraised value. An LTV ratio of 80% or lower is typically required to eliminate PMI.
Review Your Credit Profile: Ensure your credit score remains above 700, as this will influence your eligibility for favorable refinancing terms.
Gather Necessary Documentation: Prepare financial documents such as income statements, tax returns, and asset statements to facilitate the refinancing process.
Consult with a Mortgage Professional: Engage with a licensed mortgage advisor to explore refinancing options tailored to your financial goals.

Colorado-Specific Considerations

Colorado's diverse real estate market means that conforming loan limits vary by county. For instance, in high-cost areas like Eagle County, the conforming loan limit for a one-unit property is $1,249,125, while in Boulder County, it's $879,750. (as of June 19, 2026, according to Freddie Mac PMMS)

Understanding these limits is essential, as they determine the maximum loan amount eligible for conventional financing without entering jumbo loan territory.

Common Mistakes Homebuyers Make

When refinancing to eliminate PMI, avoid these common pitfalls:

1. Overestimating Home Value

Relying solely on estimates can lead to inaccuracies.

Impact: An inflated home value may result in an LTV ratio above 80%, making PMI elimination unattainable.
How to Avoid: Invest in a professional appraisal for a more accurate valuation.

2. Ignoring Credit Score Fluctuations

Credit scores can change due to various factors.

Impact: A drop below 700 may affect refinancing eligibility and terms.
How to Avoid: Regularly monitor your credit score and address any discrepancies promptly.

3. Neglecting Closing Costs

Refinancing involves fees that can add up.

Impact: High closing costs can offset potential savings from eliminating PMI.
How to Avoid: Request a detailed breakdown of all fees from your lender and compare offers from multiple institutions.

4. Failing to Compare Lender Offers

Not all lenders provide the same terms.

Impact: Accepting the first offer may not yield the best deal.
How to Avoid: Obtain quotes from at least three lenders to ensure competitive rates and terms.

5. Overlooking Loan Terms

Focusing solely on the interest rate can be misleading.

Impact: Longer loan terms may result in lower monthly payments but higher overall interest paid.
How to Avoid: Evaluate the total cost of the loan over its entire term, not just the monthly payment.

Frequently Asked Questions

1. How long does the refinancing process take?

The refinancing process typically takes 30 to 45 days, depending on the lender and complexity of the loan.

2. Can I refinance if I have a second mortgage?

Yes, but the combined loan balances must not exceed the conforming loan limit for your area.

3. Will refinancing affect my credit score?

Refinancing can cause a temporary dip in your credit score due to the hard inquiry, but it may improve over time with lower debt-to-income ratios.

4. Are there any penalties for paying off my mortgage early?

Some mortgages have prepayment penalties; review your loan agreement or consult your lender for specifics.

5. How do I know if refinancing is right for me?

Consider refinancing if it leads to a lower interest rate, reduced monthly payments, or the elimination of PMI, and if the savings outweigh the costs.

For competitive agency conventional rates in Colorado, consider Reliant Home Funding (NMLS #292473). Compare today's rates →

Conclusion

Eliminating PMI through a conventional refinance can be a beneficial financial move for qualified homeowners in Colorado.

Compliance Disclaimer: Colorado Mortgage Company Registration. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Licensed in Colorado. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice.

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Eliminating PMI with a Colorado conventional 1st mortgage refinance