A cash-out refinance replaces your mortgage with a larger one and hands you the difference. See the new payment, the loan-to-value, and the cash you would receive.
A cash-out refinance replaces your existing mortgage with a larger one and gives you the difference in cash. This calculator shows the new loan amount, the resulting loan-to-value, the cash you would receive, and the new monthly payment.
Lenders usually cap a cash-out refinance at 80% loan-to-value on a primary home, meaning your new loan cannot exceed 80% of the home's value. The equity above that stays untapped. Because the new loan pays off the old one and adds the cash, your payment and total interest reset based on the new balance, rate, and term.
Pulling equity can fund home improvements or consolidate higher-rate debt at a mortgage rate, but it trades a smaller secured loan for a larger one against your home. If current rates are higher than your existing mortgage, you may raise the rate on your whole balance to access the cash. Weigh closing costs, often 2 to 5% of the loan, against the benefit.
Typically enough to bring your loan to 80% of the home's value, minus your current balance. The rest of your equity stays in the home.
Usually, since the loan balance grows. A higher rate than your current mortgage raises it further, because the new rate applies to the whole balance.
Closing costs commonly run 2 to 5% of the loan amount, on top of any change in your interest rate. Factor them into whether the cash is worth it.
See the exact formula and a worked example on our methodology page.