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Cash-Out Refinance

A cash-out refinance replaces your mortgage with a larger loan and gives you the difference in cash. Homeowners use it to remodel, consolidate high-interest debt, pay for education or invest.

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What is a Cash-Out Refinance?

With a cash-out refinance, you take a new first mortgage for more than your current balance. After your old loan is paid off, the remaining funds go to you at closing. Most programs let you borrow up to about 80% of your home's value, with VA allowing more for eligible veterans.

One payment

Keep a single first mortgage instead of adding a second.

Debt consolidation

Replace high-interest credit cards with a lower rate.

Home improvements

Fund the remodel that adds value to your home.

Fixed rate options

Lock a predictable payment on the full balance.

Is a Cash-Out Refinance right for you?

Who it is for

  • Homeowners with meaningful equity
  • Borrowers consolidating high-interest debt
  • Homeowners funding renovations or tuition
  • Investors raising capital for the next property

Benefits

  • One loan and one payment
  • Usually lower rates than credit cards or personal loans
  • Fixed-rate options for predictable payments
  • Large lump sum at closing

Things to consider

  • Replaces your current first mortgage, including its rate
  • Closing costs apply
  • Your home secures the debt

Everything about the Cash-Out Refinance

Choose a topic to jump to the details.

How much cash you can getConsolidating debtCash-out refinance vs. HELOCHow much cash you can takeCash-Out Refinance FAQs

How much cash you can get

Lenders usually cap the new loan at 80% of your home's value for conventional loans. Subtract your current balance to estimate your available cash.

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Consolidating debt

Rolling credit card or personal loan balances into your mortgage can lower your monthly obligations significantly. Our original clients often used this to save hundreds per month.

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Cash-out refinance vs. HELOC

A cash-out refinance makes sense when you can also improve your rate or want a fixed payment on everything. A HELOC may be better if you like your current first mortgage rate.

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How much cash you can take

  • Conventional: typically up to 80% of the home's value on a primary residence
  • FHA: up to 80%
  • VA: up to 90% or more for eligible veterans
  • DSCR and investment properties: commonly 70% to 75%

The appraisal sets the value used in these calculations.

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How to apply

  1. 1

    Request a call back

    Tell us about your goals. A loan officer will confirm whether this program is the right fit.

  2. 2

    We prepare the application

    We fill out the application with you and send a secure list of documents to upload.

  3. 3

    Approval and closing

    We handle appraisal, underwriting and title, keeping you updated by phone, text or email.

Documents to have ready

  • Current mortgage statement
  • Pay stubs and W-2s or tax returns
  • Bank statements
  • Homeowner's insurance
  • Statements for debts you are paying off

Every file is different. Your loan officer will send an exact list.

Cash-Out Refinance FAQs

Have a question that is not answered here? Ask a loan officer.

Is the cash taxable?

Cash-out proceeds are loan funds, not income. Talk to your tax advisor about interest deductibility.

How much equity do I need?

Typically at least 20% equity remaining after the cash-out.

Can I do a cash-out refinance on a rental?

Yes, with conventional or DSCR programs, usually at lower loan-to-value limits.

How long does it take?

Most close in about 30 days.

Should I choose a cash-out refinance or a HELOC?

If your current rate is low, a HELOC or home equity loan lets you keep it. If rates are similar or you want one payment, a cash-out refinance may be simpler.

Talk to a loan officer

Talk with us about a Cash-Out Refinance

Tell us a little about your plans. A licensed loan officer will call you, usually the same business day.

  • No cost and no obligation
  • We can fill out the application for you
  • Evening and weekend calls available

Prefer to call? (800) 592-8882

Related programs

HELOC I want a flexible line of credit A revolving line of credit secured by your home's equity. Learn more Home Equity Loan I want a lump sum with a fixed payment Borrow a fixed amount against your equity with a fixed rate. Learn more Rate & Term Refinance I want a lower rate or a different term Replace your current mortgage to lower your rate, payment or term. Learn more