Cash Out Refinance Calculator
Calculate cash out from mortgage refinancing and compare loan terms with your current mortgage
Current Mortgage Details
Outstanding balance on your current mortgage
Annual interest rate of current mortgage
Time remaining on current mortgage
Estimated current market value of your home
Cash-Out Refinance Details
Amount of cash you want to receive (Max: $0)
Interest rate for the new mortgage
Length of new mortgage term
Percentage of new loan amount charged as fee
Appraisal, title insurance, attorney fees, etc.
Cash-Out Refinance Comparison
| Current Mortgage | New Mortgage | Difference | |
|---|---|---|---|
| Loan Amount | $0 | $0 | +$0 |
| Monthly Payment | $0.00 | $0.00 | +$0.00 |
| Interest Rate | 0.00% | 0.00% | +0.00% |
| Loan Term | 0 months | 0 months | 0 months |
| Total Interest | $0.00 | $0.00 | +$0.00 |
| Loan-to-Value | 0.0% | 0.0% | +0.0% |
Cash-Out Refinance Analysis
Example Calculation
Cash-Out Refinance Example
Current Situation: $150,000 loan balance, $200,000 home value
Current Rate: 6.5% for 23 years remaining
Desired Cash Out: $20,000
New Terms: 5.5% for 20 years
Results
New Loan Amount: $170,235 (including fees)
Monthly Payment: $1,049 → $1,171 (+$122)
Net Cash Received: ~$17,000 (after costs)
Benefit: Access to equity for home improvements or debt consolidation
Common Uses for Cash Out
Home Improvements
Kitchen remodel, additions, major repairs
Debt Consolidation
Pay off high-interest credit cards
Investment Property
Down payment on rental property
Education Costs
College tuition and expenses
Cash-Out Refinance Tips
Maximum LTV typically 80% for conventional loans
Consider closing costs vs. cash received
Interest rates may be higher than rate-and-term refi
Get recent home appraisal for accurate value
Tax implications vary by use of funds
Understanding Cash-Out Refinancing
What is Cash-Out Refinancing?
A cash-out refinance replaces your current mortgage with a new loan for more than you owe, allowing you to take the difference in cash. This lets you access your home's equity for other financial needs while potentially getting better loan terms.
How It Works
- •Apply for new mortgage larger than current balance
- •New lender pays off existing mortgage
- •Receive cash difference at closing
- •Start making payments on new larger loan
Cash-Out vs. HELOC
Cash-Out Refinance
- • Replaces existing mortgage
- • Fixed or adjustable rate
- • Lump sum at closing
- • Higher closing costs
HELOC
- • Second mortgage
- • Variable interest rate
- • Draw period flexibility
- • Lower closing costs
Requirements
- ✓Sufficient home equity (typically 20%+ after loan)
- ✓Good credit score (typically 620+)
- ✓Stable income and employment
- ✓Debt-to-income ratio under 43%
- ✓Home appraisal
Pros and Cons
Pros:
- • Access to large amounts of cash
- • Potentially lower interest rates
- • Tax-deductible interest (if used for home improvements)
- • Fixed payment schedule
Cons:
- • Higher loan balance
- • Closing costs
- • Risk of foreclosure
- • Reduced home equity