FHA Cash-Out Refinance in Colorado: Up to 80% of Value

FHA cash-out: turn home equity into cash

Refinance into a new FHA loan for more than you owe and take the difference in cash, for debt payoff, repairs or other needs. Credit rules are more flexible than conventional cash-out.

Who it fits

It fits homeowners with equity who want cash and whose credit makes a conventional cash-out expensive. With strong credit, a conventional cash-out often avoids FHA's mortgage insurance.

For a borrower who has served, a VA cash-out can also refinance an FHA loan, and it has no monthly mortgage insurance.

Consider the whole balance

A cash-out refinance replaces your entire mortgage. If your current rate is low, refinancing all of it to reach a smaller amount of cash can cost more than it saves. We will show the total cost against a second-mortgage option so you can see which costs less.

Enter your current loan and the cash you need to compare a second loan with a cash-out refinance on a blended rate. Rates are your inputs, not offers.

HELOC or cash-out refinance?. Turn on JavaScript to change the numbers.

Less interest over 5 yearsOption 1

$31,711 less: $60,105 with a second mortgage against $91,816 with a cash-out refinance.

Option 1: keep your loan and add a second mortgage$1,622a month; blended rate 4.57%

Option 2: cash-out refinance$1,816a month at 6.75% on $280,000

When your current rate is well below today's, adding a second mortgage on the new money usually costs less than refinancing the whole balance. The blended rate shows it in one number.

The second mortgage is calculated as a 20-year loan for comparison. Many HELOCs start interest-only with a variable rate, so payments can change. Closing costs are not included. Rates are your inputs, not offers.

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Calculators and guides

Common questions

Is FHA cash-out better than a home equity loan?

It depends on your current rate. If your first mortgage rate is low, a second mortgage may cost less overall than refinancing the whole balance. We compare both with your numbers.

Can I do an FHA cash-out if I have a conventional loan now?

Yes. The new loan is FHA; your current loan can be any type, as long as you meet the ownership and payment rules.

Can I add a co-borrower who does not live there?

No. Non-occupant co-borrowers cannot be added on an FHA cash-out refinance.