Cash-Out Refinance Calculator
Identify exactly how much cash you can legally extract from your home equity and what your new mortgage payment will be.
Input your parameters to generate the Cash-Out Refinance Calculator results.
How to Use This Calculator
Get accurate results in seconds by following these simple steps.
Enter Current Mortgage Info
Input your existing balance, home value, and current interest rate.
Set Cash-Out Amount
Enter how much equity you want to extract as cash.
Review New Payment
See your new larger loan balance, monthly payment, and the cash you receive at closing.
Why Use This Tool?
Equity Access
Turn your home equity into liquid cash for renovations, debt consolidation, or investments.
Rate Lock
If rates have dropped, you can extract cash AND lower your interest rate simultaneously.
Cost Transparency
See exactly how much your payment increases per dollar of cash extracted.
The Mechanics of a Cash-Out Refinance
A Cash-Out Refinance replaces your existing primary mortgage with a completely new, larger loan. The bank literally pays off your old mortgage, and wires you the difference in cold, hard cash at the closing table.
Federal housing regulations and conventional lending guidelines strictly limit your borrowing power during a cash-out refinance to 80% Loan-to-Value (LTV). This means if your home is worth $500,000, your absolute maximum new loan size is $400,000.
This calculator models the new amortization schedule based on your requested cash amount, allowing you to clearly see how destroying your old interest rate in favor of a new one will impact your monthly budget.
Frequently Asked Questions
No! Unlike liquidating an IRA or selling stock, the funds you receive from a cash-out refinance are considered a loan/debt, not income. Therefore, you do not pay income taxes or capital gains taxes on the money you extract.
If adding your desired cash out pushes your loan balance past 80% of your home's appraised value, the lender will simply deny the loan or reduce the amount of cash you receive at closing.
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