🏠 Cash-Out Refinance Calculator
Calculate cash-out refinancing options
Amount of cash you want to take out
Closing costs (can be rolled into loan)
How to Use This Calculator
Enter Home Value
Input your current home value. This is used to calculate the maximum loan amount (typically 80% of home value).
Enter Current Mortgage Balance
Input your current mortgage balance - the amount you still owe on your existing mortgage.
Enter Cash-Out Amount
Enter how much cash you want to take out from your home's equity. This amount will be added to your new loan.
Enter New Loan Terms
Enter the new interest rate and loan term for the refinanced loan. Review the results to see your new monthly payment and cash received.
Formula
New Loan Amount = Current Balance + Cash-Out Amount + Closing Costs
Monthly Payment = New Loan × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]
Maximum Loan = Home Value × 0.80 (80% LTV)
Example Calculation:
If home value $300,000, current balance $200,000, cash-out $30,000, new rate 4.5%, term 30 years:
• New loan = $200,000 + $30,000 = $230,000
• Monthly payment: ~$1,165
• Cash received: $30,000
• LTV: 76.7% (within 80% limit)
About Cash-Out Refinance Calculator
A cash-out refinance calculator helps you understand cash-out refinancing, where you refinance your mortgage for more than you currently owe and receive the difference in cash. This allows you to tap into your home's equity while refinancing your mortgage. The new loan pays off your existing mortgage, and you receive cash from the difference. This calculator shows you the new loan amount, monthly payment, and cash you'll receive.
When to Use This Calculator
- Cash-Out Planning: Calculate how much cash you can take out
- Home Improvement: Finance home improvements or repairs
- Debt Consolidation: Use home equity to pay off higher-interest debt
- Investment: Access cash for investments or other purposes
Understanding Cash-Out Refinancing
- Home Equity: Difference between home value and current mortgage balance
- Loan-to-Value (LTV): Typically capped at 80% of home value
- New Loan: Larger than current balance, includes cash-out amount
- Tax Implications: Cash-out may have tax implications - consult a tax advisor
Why Use Our Calculator?
- ✅ Cash Amount: See exactly how much cash you'll receive
- ✅ Payment Calculation: Calculate new monthly payment
- ✅ LTV Check: Verify loan stays within limits
- ✅ Planning Tool: Plan your cash-out refinance
- ✅ 100% Free: No registration or payment required
Important Considerations
- Equity Reduction: Cash-out reduces your home equity
- Higher Payments: New loan amount may increase monthly payments
- Interest Cost: Paying interest on cash you take out
- Closing Costs: Refinancing involves closing costs
- Tax Implications: Consult tax advisor about deductibility
Frequently Asked Questions
What is cash-out refinancing?
Cash-out refinancing is when you refinance your mortgage for more than you currently owe and receive the difference in cash. For example, if you owe $200,000 and refinance for $230,000, you receive $30,000 in cash.
How much can I cash out?
Typically, you can cash out up to 80% of your home's value (80% LTV). So if your home is worth $300,000, the maximum loan would be $240,000. If you owe $200,000, you could cash out up to $40,000 (minus closing costs).
What can I use cash-out funds for?
You can use cash-out funds for various purposes: home improvements, debt consolidation, investments, major expenses, or other financial needs. Some uses may have tax implications, so consult a tax advisor.
Will my monthly payment increase?
Your monthly payment depends on the new loan amount, interest rate, and term. Since the new loan is larger (includes cash-out), your payment may increase unless the new rate is significantly lower or the term is longer. Use this calculator to see the exact impact.