Cash‑Out Refinance

WHAT IS A CASH-OUT REFINANCE

A cash-out refinance lets you replace your existing mortgage with a new one while taking out cash from your home’s equity. You receive a lump sum at closing and repay it over time as part of your new mortgage. This option is ideal when you want a fixed rate, a single payment, or a structured payout.

LEARN HOW CASH-OUT REFINANCING WORKS

A cash-out refinance replaces your current mortgage with a new loan that has a higher balance. The difference between your old loan and the new loan amount is paid to you as cash. Your new loan may have a different rate, term, or payment structure depending on your goals.

SEE CASH-OUT PAYMENT EXAMPLES

Cash-out refinance payments depend on your new loan amount, interest rate, and chosen term. Because this is a full refinance, your entire mortgage payment may change. Many homeowners use this option to secure a lower rate or extend their term for lower monthly payments.

UNDERSTAND CASH-OUT RATES

Cash-out refinance rates are based on your credit score, loan-to-value ratio, and market conditions. Borrowers with strong credit and lower LTV ratios typically receive more competitive rates.

SEE HOW CASH-OUT RATES ARE SET

Lenders start with market rates and adjust based on your credit profile, income, debt levels, and equity position. Understanding how rates are set helps you prepare before applying.

CASH-OUT CREDIT REQUIREMENTS

Lenders review your credit score, income, debt-to-income ratio, and available equity. Most lenders require you to keep at least 20% equity in your home after the refinance.

CHECK CASH-OUT REQUIREMENTS

CASH-OUT FEES AND COSTS

Typical costs include appraisal fees, title fees, lender fees, and closing costs. Some lenders offer reduced-fee or no-closing-cost options, but these may come with higher rates or added terms.

REVIEW CASH-OUT FEES

CASH-OUT VS. HELOC

A cash-out refinance provides a lump sum and a single fixed payment. A HELOC offers a revolving line of credit with flexible access to funds.

COMPARE CASH-OUT VS. HELOC

COMMON USES FOR CASH-OUT FUNDS

Home improvements, debt consolidation, emergency expenses, education costs, or major purchases. Because the funds are tied to your mortgage, this option can be more cost-effective than high-interest alternatives.

EXPLORE CASH-OUT USES

TAX CONSIDERATIONS

Interest may be tax-deductible when funds are used for qualified home improvements. Other uses typically do not qualify.

LEARN CASH-OUT TAX RULES

HOW TO APPLY FOR A CASH-OUT REFINANCE

You’ll provide financial documents, verify income, complete a home appraisal, and review your new loan terms. Once approved, you receive your cash at closing and begin making payments on your new mortgage.

START YOUR CASH-OUT REQUEST