VA Cash-Out Refinance in Colorado: Up to 100% of Value

VA cash-out: use your home equity, or move into a VA loan

Refinance for more than you owe and take cash out, or refinance a conventional or FHA loan into a VA loan to drop mortgage insurance. VA allows up to 100% of the home's value.

Who it fits

It fits veterans who want cash for repairs, debt payoff or other goals, and any eligible homeowner paying mortgage insurance on an FHA or conventional loan. Moving into a VA loan removes the monthly mortgage insurance, and VA rates are typically lower than conventional rates. Because VA allows the highest loan-to-value of any program, it can reach equity that other loans cannot.

Before you take cash out

A cash-out replaces your whole mortgage. If your current rate is low, a smaller second mortgage may cost less. We will show you both, side by side, before you decide.

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 owed after 5 years with Option 1$34,513

Both pay the same $1,816 a month for 5 years: $108,964 in all.

First mortgage3.5%, 25 years left$1,101

plus Second mortgage$60,000 at 8.5%, 20 years$521

plus Extra to the secondto match Option 2$194

equals Option 1 pays$1,816a month

Cash-out refinance$280,000 at 6.75%, 30 years$1,816

equals Option 2 pays$1,816a month

First mortgage$189,905

Balance today$220,000

plus Interest, 5 years$35,987

minus Paid$66,082

equals First mortgage$189,905

plus Second mortgage$38,434

Borrowed$60,000

plus Interest, 5 years$21,316

minus Paid$42,882

equals Second mortgage$38,434

equals Option 1 still owes$228,339

New loanyour balance plus the cash$280,000

plus Interest, 5 years$91,816

minus Paid$1,816 × 60 months$108,964

equals Option 2 still owes$262,852

Option 1 requires $1,622 a month. Paying only that, $194 a month less, costs $2,802 more in interest over the 5 years. Option 1's blended rate is 4.57%, against the 6.75% cash-out rate.

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; taxes and insurance stay the same either way. Rates are your inputs, not offers.

Open it full size

For learning, not for deciding. Example numbers and general rules, not an offer or advice. Talk with a licensed professional before you decide. About our tools

Calculators and guides

Common questions

Can I use a VA cash-out to remove FHA mortgage insurance?

Yes. Refinancing an FHA or conventional loan into a VA loan removes monthly mortgage insurance, even if you take little or no cash out.

What counts as a net tangible benefit?

VA lists several, such as a lower rate, removing mortgage insurance, moving from an adjustable to a fixed rate, or keeping enough equity. Your new loan must provide at least one.

Type I or Type II?

A Type I cash-out is when the new loan is not larger than your payoff, usually to change loan type. Type II is when you take equity out. Type I loans must recoup their costs within 36 months.