Cash-Out Refinance Calculator
See how much equity you can access, what your new payment will be, and whether a cash-out refi makes sense.
Your Current Mortgage
$
$100K$1.5M
$
$0$1M
%
Current Equity
$200,000
Current LTV
55.6%
Cash-Out Details
Max at 80% LTV: $110,000
$
%
Cash You Receive
$41,000
$50,000 cash out − $9,000 closing costs
New Loan Summary
Loan Amount$300,000
New LTV66.7%
Equity Remaining$150,000
Before vs. After
Current Payment
$1,767
25 yrs left
New Payment
$1,896
30 yr term
Monthly Change
+$129
Closing Costs$9,000
New Total Interest$382,633
Cash Available at Different LTV Levels
See how much cash you can access at various loan-to-value ratios on a $450,000 home
| LTV | Max Cash Out | Closing Costs | Net Cash | New Loan | Monthly Payment |
|---|---|---|---|---|---|
| 70% | $65,000 | $9,450 | $55,550 | $315,000 | $1,991 |
| 75% | $87,500 | $10,125 | $77,375 | $337,500 | $2,133 |
| 80% * | $110,000 | $10,800 | $99,200 | $360,000 | $2,275 |
| 85% | $132,500 | $11,475 | $121,025 | $382,500 | $2,418 |
| 90% | $155,000 | $12,150 | $142,850 | $405,000 | $2,560 |
* 80% LTV is the standard maximum for conventional cash-out refinances without PMI
Current vs. New Loan
Side-by-side comparison of your existing mortgage and the new cash-out refinance
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How a Cash-Out Refinance Works
A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference as cash. It's one of the most common ways homeowners access their equity without selling.
- Step 1: Appraisal — The lender appraises your home to determine its current market value. Your maximum loan amount is typically 80% of this value (the LTV limit).
- Step 2: New loan amount — Your new loan covers your existing balance plus the cash-out amount, plus closing costs if you roll them in. For example: $250K existing + $50K cash-out = $300K new loan.
- Step 3: Closing — You close on the new loan, your old mortgage is paid off, and you receive the cash-out amount (minus any upfront closing costs) as a lump sum.
- Step 4: Repayment — You make payments on the new, larger loan at the new rate and term. Your payment may go up, down, or stay similar depending on the rate and term you choose.
When a Cash-Out Refinance Makes Sense
- Home improvements — Renovations that increase your home's value (kitchen, bathroom, additions) can be a smart use of cash-out funds because you're reinvesting in the asset securing the loan.
- High-interest debt consolidation — Replacing credit card debt at 20-25% with mortgage debt at 6-7% can save thousands, but only if you don't run up the cards again. Be honest about spending habits.
- Rate improvement — If rates have dropped since you got your mortgage, you might lower your rate AND pull cash out simultaneously. This is the ideal scenario.
- Investment property down payment — Using equity from your primary home to fund an investment property can accelerate wealth building, though it increases your overall leverage and risk.
Risks and Downsides to Consider
- You're borrowing against your home — If you can't make payments, you risk foreclosure. Using home equity for non-essential spending puts your house on the line.
- Closing costs add up — At 2-5% of the loan amount, a $300K refinance could cost $6,000-$15,000. Make sure the cash-out purpose justifies these costs.
- You reset the clock — Refinancing into a new 30-year mortgage after 5 years of payments means you'll be paying for 35 total years instead of 30. This significantly increases lifetime interest.
- Reduced equity = reduced safety net — Home equity is your buffer if property values drop. Pulling cash out reduces that buffer and could leave you underwater if the market declines.