Home values are surging in trendy locales like Denver, Colorado Springs and the picturesque Rocky Mountain towns. If you own property in the Centennial State, you can tap into soaring home equities by refinancing into a cash-out mortgage online to fund your indulgences.
From a luxury cabin getaway or an epic ski trip to a home renovation and upgrade, freeing up your liquidity enables you to pursue passions right in your own backyard or for your next big adventure.
How Online Cash-Out Refinancing Works
A cash-out refinance taps into your available home equity by replacing your current mortgage with a new higher-balance “purchase” loan at a better rate. This converts your embedded house price appreciation into tax-free cash at the closing table.
Unlike restrictive HELOCs or home equity loans, no lien gets placed on your property with a refinance. Online lending technology has simplified and expedited access to cash-out financing, with approvals in as little as 1 week.
Cash-out refinancing is a wise leverage strategy as long as you have sufficient equity (at least 20%) and prudent repayment capabilities on the new higher balance mortgage. Locking into a fixed rate on the dollars extracted solidifies a low cost of capital on your liquidity for years to come.
Smart Ways to Tap Colorado Equity
Unique Lifestyle Assets – Fund a cabin by the slopes, mountain/lakefront land, vacation home or glamping trailer to fulfill your outdoor Colorado dreams
Home Transformation – Finance a major remodel, addition, outdoor oasis or lux appointments to increase property value
High Return Investing – Invest windfall into crypto, stocks, a business startup or rental properties for diversified income streams
Special Splurges – Check off the bucket list whether its a luxury car, epic round-the-world trips, collectibles or family memory making
The key is avoiding temptation to fritter away your newly-minted wealth on rapidly depreciating assets. Refinance strategically in line with net worth goals and deploy capital into appreciating lifestyle assets or investments that align with your values.
Refinancing Considerations in Colorado
While most lenders allow up to 80% loan-to-value on a cash-out refinance, sticking below 70% LTV ensures you retain sufficient equity buffers and leads to better rates/approvals. Shop and compare quotes from multiple online lenders like Quicken Loans or LoanDepot to secure the optimal terms and closing costs.
Be sure to select reputable lenders who clearly disclose all fees, demonstrate closing cost savings, answer questions promptly, and guide you through the documentation requirements. Responsibly consolidating higher cost debts under one lean mortgage rate accelerates both wealth building and whim fulfilling!