Cash-Out Refinance
Tap into the equity you've built — for home improvements, debt consolidation, or major life expenses — while potentially improving your rate.
Down Payment
N/A (equity req'd)
Credit Score Min
620+
Max LTV
80% typically
Best For
Homeowners with equity needing funds
What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between what you owe and your new loan amount is paid out to you in cash at closing. You keep your home, you keep building equity — but you walk away with funds you can use for whatever you need.
Most conventional cash-out refinances allow you to borrow up to 80% of your home's appraised value. If your home has appreciated significantly or you've been paying down your mortgage for years, there may be substantial equity available to tap. The math is straightforward: if your home is worth $400,000 and you owe $200,000, 80% LTV would allow a new loan of $320,000 — giving you up to $120,000 in cash.
A cash-out refinance is particularly powerful when it lets you accomplish two things at once: access equity and potentially secure a better rate or reset your loan term. The caveat is that you are increasing your loan balance, which means a higher payment unless the rate drop compensates. We'll model the numbers so you can see exactly what your new payment would be before you decide.
Quick Take
- Access your home equity as cash at closing
- Use funds for renovations, debt payoff, or major expenses
- New loan replaces your existing mortgage
- Typically requires 20% equity remaining after cash-out
- Interest may be tax-deductible (consult tax advisor)
Who is a cash-out refinance best for?
If you've been in your home for several years, made regular payments, and seen your home value increase — there may be meaningful equity available to put to work. A cash-out refi is one of the most cost-effective ways to access it.
Equity-rich homeowners
Have significant equity and want to fund renovations, additions, or major home improvements.
Debt consolidators
Consolidating high-interest credit cards or personal loans into a single, lower-rate mortgage payment.
Major expense needs
Need a lump sum for tuition, medical bills, or other large expenses at a lower rate than personal loans.
Real estate investors
Want to pull equity from one property to fund a down payment on an investment or rental property.
Rate-and-equity play
Looking to access cash while also improving their interest rate in the same transaction.
Simplified financing
Prefer one mortgage payment over managing a separate HELOC alongside their existing loan.
Key Benefits
Access Home Equity
Convert the equity you've built into usable funds — for projects, goals, or needs — without selling your home.
Potentially Lower Rate
If market rates have dropped since you purchased, a cash-out refi can access equity and improve your rate simultaneously.
Consolidate High-Interest Debt
Mortgage rates are typically far lower than credit card rates. Consolidating high-interest debt into your mortgage can meaningfully reduce total monthly obligations.
Requirements
Common questions about cash-out refinancing
Comparing your options?
These refinance options are worth understanding alongside cash-out.
Let's find out how much equity you can access.
We'll calculate your available equity, model your new payment, and show you the full picture before you decide. Apply online or reach out to talk it through first.
NMLS #1898199 · Austin Williams NMLS #885656 · Equal Housing Opportunity