Cash-Out Refinance Calculator
See how much cash you can take out by refinancing your mortgage, and what the new payment would be.
About the Cash-Out Refinance Calculator
A cash-out refinance replaces your mortgage with a larger one and pays you the difference. Lenders cap the new loan at a percentage of the home's value, typically 80% for conventional loans (US VA loans can go to 90–100%). Closing costs of 2–5% apply. It makes the most sense when the new rate is close to your current one; otherwise a home equity loan or HELOC on top of a cheap first mortgage may cost less.
The formula
Max new loan = home value × max LTV; cash = new loan ÷ (1 + closing %) − current balance
Worked example
Example: Cash available = $66,000
- Inputs: Home value: $500,000; Current mortgage balance: $280,000; Maximum loan-to-value: 88%; Cash you want: $66,000; New rate: 7.4%; New term: 33 years; Closing costs: 3 % of new loan; Current monthly payment (P&I): $1,700.
- Formula: Max new loan = home value × max LTV; cash = new loan ÷ (1 + closing %) − current balance
- Result: Cash available = $66,000
Questions people ask
Is cash-out money taxed?
No, it's borrowed money, though interest deductibility rules apply.
Cash-out refi vs HELOC?
A HELOC keeps your first mortgage's rate; compare the blended cost.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.