Question 1

How much cash can I get from a cash-out refinance?

Accepted Answer

Conventional cash-out refinances on a primary home are usually limited to 80% of the home's value. Subtract your current balance and closing costs from that limit to find the cash available.

Question 2

Is the rate higher on a cash-out refinance?

Accepted Answer

Often slightly. Lenders price cash-out loans higher than rate-and-term refinances because of the added risk, commonly by 0.125% to 0.5% or more depending on LTV and credit.

Question 3

Should I do a cash-out refinance or a HELOC?

Accepted Answer

If your current mortgage rate is lower than today's rates, keeping it and adding a HELOC may cost less. If current rates are lower than yours, a cash-out refinance can lower the rate and give you cash at once. Run both.

Question 4

What are closing costs on a cash-out refinance?

Accepted Answer

Typically 2% to 5% of the new loan amount, including origination, appraisal and title. You can usually roll them into the loan, which is how this calculator treats them.

Question 5

What can I use the cash for?

Accepted Answer

Anything, but the best uses build value or reduce higher-cost debt: renovations, paying off high-interest balances or funding an investment. Remember you are borrowing against your home.

Question 6

Does a cash-out refinance restart my loan term?

Accepted Answer

Yes, you take a new term, commonly 30 years. That lowers the payment but can increase total interest. Choose a shorter term if you want to avoid resetting the clock.

	Cash-out refinance	HELOC
Existing mortgage	Replaced	Kept
Rate	Fixed, set at today's rate	Usually variable
Closing costs	2% to 5%	Often low
Best when	Today's rate is below yours	Your current rate is lower than today's

Cash-Out Refinance
Calculator

How the cash-out amount is limited

Frequently Asked Questions

Cash-Out RefinanceCalculator

How the cash-out amount is limited

Frequently Asked Questions

Cash-Out Refinance
Calculator