Cash-Out Refinance in Colorado Springs
Turn part of your home equity into cash with a new first mortgage, with a clear look at the costs and trade-offs before you decide.
A cash-out refinance replaces your current mortgage with a new, larger loan and pays you the difference in cash at closing. Colorado homeowners use it for renovations, roof and exterior repairs, paying off higher-interest debt, college costs or a down payment on another property. Because it resets your first mortgage and increases the amount secured by your home, the decision deserves a careful look at your current loan, your equity and your goal. Countryside Lending has helped Colorado homeowners refinance since 2006, and we offer conventional, FHA, VA and jumbo cash-out options as well as cash-out refinancing on rental properties. Your loan officer is Brendon O'Connor (NMLS #249969).
At a glance
Equity, in one loan
Replace your mortgage and take cash out in a single new first mortgage, with one monthly payment.
Programs for different borrowers
Conventional, FHA, VA and jumbo cash-out options, plus cash-out on one- to four-unit rental properties.
Honest trade-offs
We compare a cash-out refinance with keeping your current loan, and we'll tell you if it doesn't serve your goal.
Who a Cash-Out Refinance Is For
A cash-out refinance can make sense when you have built equity and need a larger sum for a specific purpose. Colorado Springs homeowners often consider one to:
- Renovate, add space or update an older home
- Replace a roof, siding or windows after Colorado hail or wear
- Pay off higher-interest credit cards or other debt
- Cover major expenses such as tuition or medical bills
- Pull equity from a rental property to buy another one
- Refinance from an FHA or conventional loan into a VA cash-out loan as an eligible veteran or service member
If you only need a smaller amount, or you want to keep your current mortgage rate, a home equity loan or home equity line of credit (HELOC) may be worth comparing. Those are separate second loans, and the comparison below explains the difference.
Why Work With Countryside Lending on Your Cash-Out Refinance
A cash-out refinance changes your whole first mortgage, not just the cash portion, so we look at the full picture: your current loan, how much equity you have, closing costs, how long you plan to stay and what the cash is for. We explain your options in plain English and keep the loan organized from application to closing.
- One point of contact from application to closing
- Side-by-side look at your current loan and the new one
- Clear explanation of closing costs and how the cash is paid out
- No pressure to refinance if the numbers don't support it
Cash-Out Refinance Requirements in Plain English
Every cash-out program limits how much of your home's value you can borrow against, so the amount available depends on your equity, the appraised value and the program. Lenders also review your income, employment, assets, credit history and current debts, just as they would for a purchase.
Most programs expect you to have owned the home for a minimum period before you take cash out, and some require that you live in the home. An appraisal is usually required to confirm the current value.
Conventional cash-out loans follow Fannie Mae and Freddie Mac guidelines and can be used on a primary residence, second home or investment property. FHA cash-out refinances are for owner-occupied homes. VA cash-out refinances let eligible veterans and service members refinance a VA or non-VA loan, and a VA funding fee usually applies unless you are exempt. Jumbo cash-out loans follow each lender's own guidelines.
On a refinance of your primary residence, federal law generally gives you a right to cancel for a short period after signing, so the cash is released after that window. We'll tell you exactly what your program requires and walk you through the Loan Estimate before you commit.
Cash-Out Refinance vs. Home Equity Loan or HELOC
All three let you borrow against your home's equity. The biggest difference is whether your current first mortgage is replaced or stays in place.
| Cash-out refinance | Home equity loan or HELOC | |
|---|---|---|
| Your current mortgage | Paid off and replaced by one new, larger first mortgage | Stays in place; the new loan is a separate second lien |
| Monthly payments | One mortgage payment | Your existing payment plus a second payment |
| Interest rate | The new rate applies to the whole loan balance | Your first mortgage rate is unchanged; the second loan has its own rate, and a HELOC rate is usually variable |
| How you receive funds | Lump sum at closing | Lump sum (home equity loan) or draw as needed (HELOC) |
| Closing costs | Full refinance closing costs on the new loan | Often lower, but terms and fees vary |
| Often fits | Homeowners who would also benefit from changing their rate, term or loan type | Homeowners who want to keep their current first mortgage rate |
Which option costs less depends on your current rate, the amount you need and how long you plan to keep the loan. We'll go over the cash-out numbers with you so you can compare.
Self-Check: Is a Cash-Out Refinance Worth a Closer Look?
Check the statements that apply to you.
Cash-Out Refinancing in Colorado Springs and Across Colorado
Our office is on Kelly Johnson Boulevard in north Colorado Springs, and we help homeowners throughout El Paso County and the rest of Colorado.
Hail, roofs and home updates
Hail is a fact of life along the Front Range, and many homeowners pair insurance proceeds with their own funds for a new roof, siding or windows. If you're planning a remodel, an addition or a finished basement, check City of Colorado Springs or county permit requirements first, because unpermitted work can affect an appraisal.
Property taxes and metro districts
El Paso County reassesses property values periodically, and many newer neighborhoods carry metro district assessments and HOA dues. We include taxes, insurance and those costs when we compare your current payment with the new one.
Military homeowners
Eligible veterans and service members can refinance an FHA or conventional loan into a VA cash-out loan. If you're keeping your Colorado Springs home as a rental after a PCS, the rules for a rental-property cash-out are different. See VA loans and investment property loans.
Higher-value homes
If the new loan amount is above the conforming limit for the county, a jumbo cash-out refinance may apply. See jumbo loans.
What we don't offer
Countryside Lending does not offer land, construction, hard money or commercial loans. Our cash-out refinancing is for residential homes and one- to four-unit rental properties.
Our Cash-Out Refinance Process in 3 Steps
- 1
Complete a quick application
It takes about 5–10 minutes. Click Get Pre-Approved to start.
- 2
Quick call to go over loan options
We review your current loan, your equity and your goal, and compare a cash-out refinance with keeping what you have.
- 3
Appraisal, approval and closing
We order the appraisal, keep your file moving and walk you through your Loan Estimate and closing documents.
Cash-Out Refinance FAQs for Colorado Homeowners
See Whether a Cash-Out Refinance Fits Your Goal
Tell us what the cash is for and share your current loan details. We'll compare your options and give you a straight answer, with no pressure.