Cash-Out Refinance
Unlock equity for renovations, debt consolidation, or big goals with clear numbers before you commit.
How cash-out refinancing works
Calculate your available equity
Subtract what you owe from your home's current value. Most lenders let you borrow up to 80% of the value.
Get a new, larger mortgage
Your new loan pays off your existing mortgage and provides cash for your needs.
Receive your cash at closing
The difference between your new loan and old loan (minus closing costs) is yours to use.
Example Calculation
*Actual amount will be reduced by closing costs unless financed
Smart ways to use your equity
Make your home's equity work for your financial goals.
Home Improvements
Increase your home's value with renovations while potentially qualifying for tax deductions.
Debt Consolidation
Pay off high-interest credit cards and loans with your lower mortgage rate.
Investment Property
Use your equity as a down payment on a rental property or vacation home.
Education Expenses
Fund college tuition or career training at lower rates than most student loans.
Benefits of cash-out refinancing
Lower interest rates than alternatives
Mortgage rates are typically much lower than credit cards, personal loans, or home equity loans.
Fixed payments you can budget
Unlike HELOCs with variable rates, your cash-out refinance has predictable monthly payments.
Potential tax benefits
Interest may be tax-deductible if funds are used for home improvements. Consult your tax advisor.
Large lump sum upfront
Get all your cash at once for major expenses like renovations or paying off multiple debts.
Simplified finances
Consolidate multiple high-interest debts into one lower monthly payment.
Build wealth faster
Use equity for investments that could grow faster than your mortgage interest rate.
See how much cash you could access
Get a personalized quote based on your home's value and current rates.
Cash-out refinance FAQs
Get answers to common questions about cash-out refinancing.
Most lenders allow you to borrow up to 80% of your home's value with a cash-out refinance. For example, if your home is worth $400,000 and you owe $200,000, you could potentially access up to $120,000 in cash ($320,000 new loan - $200,000 existing loan).
You can use the funds for any purpose: home improvements, debt consolidation, investment properties, education expenses, emergency funds, or starting a business. Home improvements and debt consolidation are the most common uses.
Your payment will likely increase since you're borrowing more money. However, if you're consolidating high-interest debt, your total monthly obligations might decrease. We'll help you understand the full financial impact before you commit.
Cash from a refinance isn't taxable income. If you use the funds for home improvements, the interest may be tax-deductible. Consult a tax professional for advice specific to your situation.
Cash-out refinancing gives you a lump sum with a fixed rate, while a HELOC provides a credit line with variable rates. Cash-out is better for large, one-time needs, while HELOCs offer more flexibility for ongoing expenses.
Most cash-out refinances require a credit score of 620 or higher, though 640+ will get you better rates. FHA cash-out refinances may accept scores as low as 580. The higher your score, the more cash you can access at better rates.
Important Disclosures
Cash-out refinancing increases your loan balance and monthly payment.
Maximum cash-out amount depends on home value, existing liens, and creditworthiness.
Closing costs typically 2-5% of new loan amount. Can be financed into the loan.
Failure to make payments could result in foreclosure.