Cash-Out Refinance Calculator

Calculate your new payment, available cash, and LTV for a cash-out refinance. See how much equity you can tap and the total cost of borrowing against your home.

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New Monthly Payment
$2,205
Cash received: $60,000 · New loan: $340,000 · LTV: 68.0%
Cash Received
$60,000
New Loan Amount
$340,000
New LTV Ratio
68.0%
Remaining Equity
$160,000
Total Interest (30 yrs)
$453,884
Max Cash-Out Available
$120,000

How to Use This Cash-Out Refinance Calculator

Enter your Home Value (current appraised value), Current Loan Balance, and the Cash-Out Amount you want to receive. The calculator caps cash at the 80% LTV limit automatically. Add your New Interest Rate and Term to see the new monthly payment and total cost analysis.

A cash-out refinance replaces your entire existing mortgage with a new, larger loan. The difference between the new loan and your current balance is paid to you at closing.

Cash-Out Refinance Formula

New Loan Amount = Current Balance + Cash-Out Amount
Maximum Loan = Home Value × 80% (typical LTV limit)
Maximum Cash-Out = Home Value × 80% − Current Balance

New Monthly Payment = Monthly Payment(New Loan, New Rate, New Term)
Remaining Equity = Home Value − New Loan Amount

Example: Accessing $80,000 for Home Renovation

$500,000 Home, $280,000 Balance

Home Value$500,000
Current Balance$280,000
Max Cash-Out (80% LTV)$120,000
Cash Requested$80,000
New Loan Amount$360,000
New Rate / Term6.75% / 30 years
New Monthly Payment$2,335
New LTV72%
Remaining Equity$140,000

Using $80,000 cash-out for a kitchen and bathroom renovation may return 60–80% of cost in home value at resale, while the interest on the improvement portion may be tax deductible.

Frequently Asked Questions

Most conventional lenders cap total loan at 80% of home value. On a $500,000 home, max loan is $400,000. If you owe $280,000, max cash-out is $120,000. VA loans allow up to 90% LTV. FHA cash-out is also capped at 80% LTV. Your credit score and debt-to-income ratio may further limit the amount.
Cash-out refi replaces your mortgage with a larger loan at a potentially new rate — single loan, single payment. HELOC adds a revolving credit line on top of your existing mortgage with variable rates. Cash-out refi is better for large one-time needs when you also want to change your rate. HELOC is better for ongoing access to funds without touching your first mortgage.
Interest on the portion used to "buy, build, or substantially improve" your home is deductible (subject to the $750K limit). Interest on cash used for other purposes (debt consolidation, vacation, investments) is not deductible as home mortgage interest. Keep records of how you use the funds.
Key risks: you're using your home as collateral (foreclosure risk if you can't make payments), you reduce equity (important buffer in market downturns), closing costs reduce immediate cash benefit, and extending your term can significantly increase lifetime interest costs. Only borrow what you need for high-priority uses.
Cash-out refinances typically close in 30–45 days, similar to a purchase mortgage. The process involves application, appraisal (usually required), underwriting, and closing. After closing, there's a 3-day right of rescission for primary residence refinances — funds are available on day 4.

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