Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated October 24, 2026

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

Eliminating PMI with a Colorado Conventional Mortgage Refinance for Credit-Qualified Borrowers

Q: What are the costs associated with refinancing?

- Compliance Disclaimer: Loans are subject to credit approval, rates and terms may change, and the NMLS number is 292473. Reliant Home Funding is licensed in Colorado. --- This article is for informational purposes only and does not constitute financial or legal advice.

As of June 6, 2026, according to Freddie Mac's Primary Mortgage Market Survey®, the 30-year fixed mortgage rate is 6.48%, and the 15-year fixed rate is 5.79%. Freddie Mac PMMS. For credit-qualified borrowers in Colorado with FICO scores above 700 and substantial down payments, refinancing your conventional first mortgage presents a strategic opportunity to eliminate Private Mortgage Insurance (PMI) and potentially secure more favorable loan terms.

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	6.48%	-0.05%
15-Year Fixed	5.79%	-0.03%

These rates, as of June 6, 2026, according to Freddie Mac's Primary Mortgage Market Survey®, reflect a slight decrease from the previous week. Freddie Mac PMMS. Such trends can influence your refinancing decision, especially if you're aiming to eliminate PMI.

Steps to Eliminate PMI with a Conventional Refinance

Eliminating PMI can lead to significant savings over time. Here's how you can achieve this through a conventional refinance:

Assess Your Current Loan-to-Value (LTV) Ratio: PMI is typically required when the LTV ratio exceeds 80%. By refinancing and reducing your LTV below this threshold, you can eliminate PMI.
Determine Your Home's Current Market Value: An accurate appraisal is essential to establish your home's current value, which directly impacts your LTV ratio.
Evaluate Your Credit Profile: With a FICO score above 700, you are well-positioned to secure competitive refinancing terms.
Calculate Potential Savings: Compare your current mortgage payments, including PMI, with the projected payments post-refinance to determine potential savings.
Consult with a Mortgage Professional: Engaging with a licensed mortgage professional can provide personalized insights tailored to your financial situation.

Pro Tip: Refinancing to eliminate PMI not only reduces your monthly expenses but can also shorten your loan term, allowing you to build equity faster.

Key Considerations for Colorado Homeowners

Colorado's diverse real estate market presents unique opportunities and challenges for homeowners considering refinancing:

Conforming Loan Limits: For 2026, the Federal Housing Finance Agency (FHFA) has set the baseline conforming loan limit at $832,750. Understanding these limits is crucial, as they determine the maximum loan amount eligible for conventional financing without entering jumbo loan territory.
Property Values: Colorado's real estate market has experienced significant appreciation, especially in urban centers and resort communities. This appreciation can positively impact your home's equity, facilitating a refinance to eliminate PMI.
Local Market Conditions: Factors such as inventory levels, demand, and economic growth influence property values and refinancing opportunities. Staying informed about local market trends can aid in making strategic refinancing decisions.

Common Mistakes Homebuyers Make

When refinancing to eliminate PMI, homeowners often encounter pitfalls that can hinder their objectives:

1. Overlooking Closing Costs

Refinancing involves closing costs that can offset potential savings. It's essential to calculate these costs and determine if the long-term benefits outweigh the initial expenses.

How to Avoid:

Request a Detailed Loan Estimate: Obtain a comprehensive breakdown of all fees associated with the refinance.
Compare Offers: Evaluate multiple lenders to find the most cost-effective option.

2. Ignoring Loan Terms

Focusing solely on eliminating PMI without considering other loan terms can lead to unfavorable conditions.

How to Avoid:

Review Loan Terms Thoroughly: Ensure that the refinance terms align with your financial goals, including interest rates, loan duration, and repayment options.
Consult a Mortgage Advisor: Seek professional advice to understand the implications of different loan terms.

3. Misunderstanding LTV Requirements

Not accurately calculating the LTV ratio can result in unexpected PMI requirements or higher interest rates.

How to Avoid:

Obtain a Professional Appraisal: Ensure an accurate assessment of your home's value.
Calculate LTV Carefully: Divide your loan amount by the appraised value to determine the LTV ratio.

4. Failing to Lock in Rates

Interest rates fluctuate, and failing to lock in a favorable rate can lead to higher costs.

How to Avoid:

Monitor Rate Trends: Stay informed about market movements.
Lock in Rates Promptly: Once a favorable rate is identified, secure it to protect against increases.

5. Neglecting to Shop Around

Accepting the first refinance offer without comparison can result in missed opportunities.

How to Avoid:

Compare Multiple Lenders: Assess offers from various institutions to find the best deal.
Consider Online Tools: Utilize online platforms to compare rates and terms efficiently.

Frequently Asked Questions

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

Evaluate your current mortgage terms, interest rates, and the potential savings from eliminating PMI. Consulting with a mortgage professional can provide personalized guidance.

2. What are the costs associated with refinancing?

Compliance Disclaimer: Loans are subject to credit approval, rates and terms may change, and the NMLS number is 292473. Reliant Home Funding is licensed in Colorado.

This article is for informational purposes only and does not constitute financial or legal advice.