Cash-Out Refinance Calculator
Identify exactly how much cash you can extract from your home equity and determine your resulting new monthly mortgage payment. Evaluate the true cost of tapping your equity.
Result Data
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 completely replaces your existing primary mortgage with a brand new, significantly larger loan.
During closing, the lender first pays off your old mortgage obligation entirely, and then wires you the remaining difference in cold, hard cash.
Federal housing regulations and strict conventional lending guidelines strictly limit your total borrowing power during a cash-out transaction to exactly 80% Loan-to-Value (LTV).
This strictly means if your home is currently appraised at $500,000, your absolute maximum new loan size is capped by the bank at $400,000.
This powerful calculator rapidly models your completely new amortization schedule strictly based on the requested cash amount.
It allows you to clearly visualize how destroying your old interest rate in favor of a new one will shift your long-term obligations.
Frequently Asked Questions
No! Unlike legally liquidating a traditional IRA or selling market stock, the funds you receive from a cash-out refinance are considered standard debt, not income. You do not pay income taxes on extracted cash.
If adding your desired cash out amount fundamentally pushes your total loan balance past 80% of your home's official appraised value, the lender will simply reduce the amount of cash you receive at the closing table.
Not always. A cash-out refinance replaces your entire primary mortgage, meaning you lose your original interest rate. A HELOC acts as a separate second mortgage, allowing you to keep your primary rate intact.
Yes. Once the mortgage funds are wired into your bank account, there are absolutely no restrictions. Borrowers routinely use the funds for college tuition, consolidating high-interest credit cards, or buying additional real estate.
Yes, in the vast majority of cases, the lender will mandate a brand new interior home appraisal to legally verify the current market value of your property and justify the new 80% LTV calculation.
The process is identical to a standard home purchase mortgage. You should expect the underwriting, appraisal, and formal closing process to take approximately 30 to 45 chronological days to complete.
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