If you purchased a Colorado home in 2018–2021, you've likely accumulated significant equity. A cash-out refinance lets you convert a portion of that equity into liquid capital while potentially adjusting your rate and term.
How It Works
Example: Home worth $750K, current mortgage $420K, 80% LTV cap = $600K new loan. Cash to you: $600K - $420K - ~$12K closing = ~$168K.
How Much Equity You Can Access
Conventional: 80% LTV on primary. VA: Up to 90% LTV — significant equity advantage. FHA: 80% LTV (12 months on-time payments required). Non-QM: 85–90% with MI, higher rates. Investment: 75% LTV max.
When It Makes Sense in 2026
Home improvements with high ROI (kitchen, bath, primary suite — 60–80% return). Debt consolidation from 20%+ credit card APRs to 6–7.5% mortgage. Real estate investment — many clients use Colorado equity to fund Florida investment property acquisitions. Tuition — beats parent PLUS (7%+) and private student loans (8–12%).
When It Doesn't
Your existing rate is significantly below market (cash-out re-prices your entire balance). You're selling within 3 years (closing costs need time to recoup — a HELOC may be better). You're borrowing for consumable spending.
Cash-Out vs. HELOC
Cash-out refi: Fixed rate, replaces primary mortgage, 2–3% closing costs, best for large one-time needs. HELOC: Variable rate (Prime + margin), low closing costs, draw as needed, best for phased projects.
Colorado-Specific Considerations
Appraisals: LTV is calculated on appraised value. Many homeowners find more equity than expected. We can request Desktop Appraisal (AVM) on many conventional loans. Title: Colorado is a public trustee state. Property taxes: Higher loan balance doesn't change your bill — verify Gallagher exemptions.
Get a Cash-Out Quote
We analyze your current mortgage, value, and target use of proceeds to determine if a cash-out refi or HELOC is the right fit. Contact Tayton Capital or apply now.
📧 tj@taytoncapitalllc.com
📞 970-708-9624
Get help with refinance
Talk to a licensed broker or explore the program that fits this article.
Frequently asked questions
How much equity can I access with a cash-out refinance in Colorado?
On a conventional cash-out, up to 80% of your home's current appraised value minus your existing mortgage balance. VA cash-out can go to 90% LTV.
Does a cash-out refinance hurt my credit score?
A new hard inquiry and new account can temporarily lower your score 5–15 points. The impact is typically minor and recovers within 6–12 months.
What can I use cash-out refinance funds for in Colorado?
Anything — home renovations, debt consolidation, investment, tuition, emergency reserves. The lender does not restrict use of cash-out proceeds.
Is a HELOC or cash-out refinance better in 2026?
If you have a mortgage rate below 5%, a HELOC is often better — it provides equity access without repricing your entire mortgage. For large lump sums or at-market rates, cash-out may make more sense.
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