Colorado Cash Out Refinance Q&A

  1. How much equity do I need to get a Cash Out Loan for my Primary residence?

    Typically, a borrower can take equity out of a primary residence using conventional financing (lowest rates) as long as they leave 20% equity in their home when they obtain a Cash Out Loan. Unconventional loans follow different standards, with FHA financing requiring a borrower leave 15% equity in their home and VA Financing having no minimum equity requirements. Regardless of your financing needs, we work to find solutions to most complex mortgage situations. Contact us today to receive a personalized recommendation for your current situation.

  2. How often can I take cash out of my investment property?

    You can obtain a Cash Out Home Equity Loan for your investment property at any time.

  3. When should I think about refinancing?

    The best way to determine whether or not it’s time to refinance is to do some quick math, or use a refinancing calculator. While refinancing at a lower rate can certainly save money over time, there are still fees associated with completing the process. While you can find a more detailed explanation of refinancing timing here, this quick equation illustrated the payback period:(Fees associated with refinancing)/(Expected monthly savings) = Number of months to payback

  4. How does a ‘cash out’ mortgage differ from a regular refinance?

    With a cash out refinance you can take out accrued equity in cash to use for any purpose, such as: debt consolidation, household improvements, etc. You can take cash out with conventional, jumbo, or investment property loans.  The whole transaction can be completed without any out of pocket costs.

  5. What are the advantages of a Colorado Cash Out refinance vs a HELOC?

    Typically, a HELOC has very low closing costs, but is an adjustable rate loan.  With a cash-out refinance, you will get a new 15- or 30- year fixed rate mortgage at today’s low interest rates. A HELOC is a logical choice for addressing a short-term cash crunch, while a cash out loan is great for lowering your overall interest rate  while taking out a substantial amount of cash (such as for a major remodel) that you prefer to pay back over an extended time. Overall, the decision depends on:

    • The amount of money you need to take out
    • The length of time before you can repay
    • The current interest rate on your home
  6. What is home equity?

    In the simplest terms, home equity is the market value of your home minus the mortgage balance. To learn more, read our 300 words or less explanation.

  7. What are the benefits of refinancing?

    A few of the benefits of refinancing with a Colorado Cash Out loan, as detailed in our ‘4 Ways to Make Refinancing Work for You!’ article, are: lower monthly payments, financial liquidity, lower your interest rate, consolidate debt, and switch from an ARM to a fixed-rate note.