Cash-Out Refinance Calculator
Estimate how much cash you may be able to access from your home's equity and how a cash-out refinance could change your monthly payment. This estimate is informational only and is not an approval, rate quote, or commitment to lend.
- 1Property
- 2Current Loan
- 3New Loan
- 4Your Results
Step 1 of 4: Property
Tell us about your property
Start with your home's estimated value, your current mortgage balance, and the cash you'd like to receive.
The estimated cash you'd like to receive from your equity.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan estimate, loan approval, commitment to lend, rate lock, or guarantee of available terms. Estimates compare principal-and-interest payments only and exclude taxes, insurance, HOA dues, mortgage insurance, and escrow adjustments. Actual rates, payments, closing costs, cash available, and eligibility vary by borrower, property, lender, and market conditions. Borrowers should review personalized options with a qualified mortgage professional.
What Is a Cash-Out Refinance?
A cash-out refinance replaces your existing mortgage with a new, larger loan. The new loan pays off your current mortgage balance, and you receive the difference in cash to use for your goals. Because the new loan is larger, your monthly payment and total borrowing cost may change.
Homeowners commonly use cash-out refinancing to access home equity for home improvements, debt consolidation, education, or other major expenses. Because program requirements and availability vary by lender, borrower, and property, Anchor Capital Lending helps homeowners review and compare available refinancing options.
How the Cash-Out Refinance Calculator Works
Enter your property details
Provide your estimated home value, current mortgage balance, and the cash you'd like to receive.
Describe your current loan
Enter your current rate and remaining term so the calculator can estimate your current payment.
Build your new loan
Enter an estimated new rate, select a term, estimate closing costs, and choose whether costs are paid upfront or financed.
Home Equity and Loan-to-Value (LTV)
Your home equity is the difference between your home's value and what you owe. A cash-out refinance lets you convert some of that equity into cash. Loan-to-value (LTV) is the new loan amount divided by your home's value, expressed as a percentage.
Many cash-out programs cap borrowing at or below 80% LTV, meaning the new loan generally should not exceed 80% of your home's value. This calculator shows an 80% planning limit and the estimated maximum cash before costs. Some programs allow higher ratios; availability and terms depend on the lender, loan program, and your qualifications.
Common Uses for Cash-Out Refinance
Home improvements
Fund renovations or repairs that may also increase your home's value over time.
Debt consolidation
Combine higher-interest debts into a single payment, potentially at a lower rate.
Major expenses
Cover education, investment opportunities, or other significant planned costs.
Because a cash-out refinance is secured by your home, it's important to weigh the purpose, the change in monthly payment, and the long-term cost before moving forward.
Understanding Cash-Out Refinance Costs
Cash-out refinancing typically involves closing costs, which may include lender fees, appraisal costs, title charges, and recording fees. These costs vary by lender, loan program, property, and location. This calculator lets you estimate closing costs and choose whether they are paid upfront or financed into the new loan.
Financing closing costs increases the new loan balance and the total interest paid over the life of the loan, while paying them upfront keeps the balance lower but requires more cash at closing. Your actual closing costs will be provided during a personalized review with the lending team.
Cash-Out Refinance vs. HELOC and HELOAN
Cash-Out Refinance
Replaces your entire first mortgage with a new, larger loan. You receive the difference in cash and make a single monthly payment at the new rate and term.
HELOC
A separate revolving line of credit secured by your home. You keep your existing first mortgage and draw on the line as needed, with a variable rate during the draw period.
HELOAN
A separate fixed second mortgage that keeps your existing first mortgage intact. You receive a lump sum and make a fixed second payment alongside your first mortgage.
The right choice depends on your current rate, equity, goals, and whether you prefer a single payment or keeping your first mortgage unchanged. A mortgage professional can help you compare approaches for your scenario.
Eligibility and What Lenders Commonly Review
Credit
A credit review is part of the underwriting process for most cash-out refinancing.
Income and assets
Income documentation and asset statements are commonly reviewed to confirm affordability and reserves.
Property value
An appraisal or other valuation may be used to confirm your home's value and available equity.
Requirements vary by lender and loan program. Your lending professional can provide a specific list for your scenario.
Frequently Asked Questions
What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference in cash. The new loan pays off your current mortgage balance, and you receive the additional amount to use for goals like home improvements, debt consolidation, or other needs. The new loan is secured by your home, so it's important to understand the change in payment and total borrowing cost.
How much cash can I get from a cash-out refinance?
The amount depends on your home's value, your current mortgage balance, and the lender's maximum loan-to-value (LTV) limit. Many cash-out programs cap borrowing at or below 80% LTV, meaning the new loan (balance plus cash-out plus any financed costs) generally should not exceed 80% of your home's value. This calculator shows an 80% planning limit and the estimated maximum cash before costs, though some programs allow higher ratios.
How is loan-to-value (LTV) calculated for a cash-out refinance?
LTV is the new loan amount divided by your home's estimated value, expressed as a percentage. For example, a $400,000 loan on a $500,000 home is an 80% LTV. Lenders use LTV to help determine eligibility, pricing, and the maximum cash available. Lower LTVs generally offer more options and better terms.
What are common uses for cash-out refinance proceeds?
Homeowners commonly use cash-out proceeds for home improvements, debt consolidation, education expenses, or other major expenses. Because the loan is secured by your home, it's important to weigh the purpose, the change in monthly payment, and the long-term cost. A mortgage professional can help you evaluate whether a cash-out refinance fits your goals.
How does a cash-out refinance compare with a HELOC or HELOAN?
A cash-out refinance replaces your entire first mortgage with a new loan at current rates. A home equity line of credit (HELOC) is a separate revolving line of credit, and a home equity loan (HELOAN) is a separate fixed second mortgage. Cash-out refinancing may offer a single payment and potentially a lower rate on your full balance, while a HELOC or HELOAN keeps your existing first mortgage intact. The right choice depends on your current rate, equity, and goals.
What costs are involved in a cash-out refinance?
Cash-out refinancing typically involves closing costs, which may include lender fees, appraisal costs, title charges, and recording fees. This calculator lets you estimate closing costs and choose whether they are paid upfront or financed into the new loan. Financing costs increases the loan balance and the total interest paid over the term.
What do lenders commonly review for a cash-out refinance?
Lenders commonly review your credit, income, assets, property value, and equity. Requirements vary by lender and loan program. A cash-out refinance also typically requires sufficient equity to support the new loan amount and cash you want to receive. Your lending professional can provide specific guidance for your scenario.
Is this calculator result a loan quote or approval?
No. The result is an informational estimate for educational and planning purposes only. It is not a loan estimate, approval, rate lock, or commitment to lend. Actual rates, payments, closing costs, cash available, and eligibility are determined following review by the appropriate licensed lending professional.
Ready to Review Your Cash-Out Refinance Options?
Schedule a consultation to discuss your goals and available lending options. We'll review your scenario and help identify the appropriate next steps.
Submitting an inquiry does not guarantee approval or constitute a commitment to lend. Financing availability and terms are determined following review by the appropriate licensed lending professional.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan estimate, loan approval, commitment to lend, rate lock, or guarantee of available terms. Estimates compare principal-and-interest payments only and exclude taxes, insurance, HOA dues, mortgage insurance, and escrow adjustments. Actual rates, payments, closing costs, cash available, and eligibility vary by borrower, property, lender, and market conditions. Borrowers should review personalized options with a qualified mortgage professional.