Use your home equity to pay off debt, make home improvements, or reach financial goals

If you’ve built up equity in your Colorado home, a cash out refinance could be a smart way to access it. This type of refinance lets you replace your existing mortgage with a new one for more than you owe and take the difference in cash. You can use the funds however you want: pay off high-interest debt, renovate your home, cover college tuition, or boost your savings.

We help homeowners across Colorado including Centennial, Castle Rock, Parker, Denver, and beyond to leverage their home equity with clear, personalized advice.

How does a cash out refinance work?

You refinance your current mortgage and borrow more than your current loan balance. The extra amount is paid to you as a lump sum at closing.

Example:

  • Home value: $500,000
  • Current mortgage: $320,000
  • New loan: $400,000
  • Cash out: $80,000 (after closing costs)

Why consider a cash out refinance?

Here are some of the most common reasons Colorado homeowners use cash out refinances:

  • Consolidate high-interest debt (credit cards, personal loans)
  • Fund home renovations or repairs
  • Pay for college or large expenses
  • Cover emergency costs or medical bills
  • Invest in a business or second home

Cash out refinances offer lower rates than personal loans or HELOCs and the interest may be tax-deductible when used for home improvements (ask your tax advisor).

Cash out refinance guidelines

Here are some typical requirements*:

– Max loan-to-value (LTV) is 80% for conventional loans
– Minimum credit score of 620 (higher for best rates)
– Proof of income and assets required
– Appraisal usually required to determine home value
– Primary, second homes, and investment properties may qualify

Learn more from the Consumer Financial Protection Bureau

If you’re thinking about using your home equity, let’s talk!
Call or text us at 303-670-0137, email us at rbaxter@choicemortgage.com, or request a quote. We’ll help you run the numbers and see if a cash out refinance makes sense for your goals.

*Guidelines current as of May 2025