Cash-Out Refinance Calculator — Estimate Your Equity & New Payment (2025)
Our free cash-out refinance calculator helps you determine how much equity you can access from your home, your new monthly payment, and whether it's the right financial move. Includes 2025 LTV limits, closing costs, and qualification guidelines.
Cash-Out Refinance Calculator
Calculate your cash-out amount, new payment, and total costs. See if it's the right financial move for your situation.
Common Scenarios
Current Mortgage
New Cash-Out Loan
How to Use Our Cash-Out Refinance Calculator
Enter Property Details
Input your home's current market value and outstanding mortgage balance. These determine your available equity. Check recent comparable sales for accuracy.
Add Interest Rates & Terms
Enter your current rate and remaining term, plus your expected new rate and term. Most lenders allow up to 80% LTV for conventional cash-out refinances.
Specify Cash Amount & Costs
Enter how much cash you need (up to 80% LTV limit) and estimated closing costs. The calculator warns if you exceed maximum LTV or available equity.
Review Results & LTV Warning
Check your new loan amount, cash received, payment change, and LTV ratio. If LTV exceeds 80%, you may need PMI. Review breakeven point carefully.
Key Features & Benefits
Accurate LTV Calculations
Calculates up to 80% conforming loan limits with real-time warnings when you exceed maximum LTV ratios. Includes FHA (85%) and VA (90%) guidelines for qualified borrowers.
Real-Time Updates
All calculations update instantly as you adjust home value, cash-out amount, rates, or terms. See immediately how changes affect your payment, LTV, and total costs.
Comprehensive Cost Analysis
Includes closing costs, PMI warnings when LTV exceeds 80%, and detailed breakeven analysis. Compare old vs. new loan total costs over the full loan term.
Interactive Charts
Visual loan balance comparison chart showing current vs. new loan over time. See exactly when your new loan balance catches up and surpasses your current trajectory.
Preset Scenarios
One-click presets for common cash-out purposes: home improvement, debt consolidation, investment property down payment, or rate reduction with cash back.
Export & Share
Export detailed results to CSV format for loan officers, financial advisors, or your records. Share scenarios with family members or partners making joint decisions.
Complete Guide to Cash-Out Refinancing in 2025
Cash-out refinancing allows homeowners to tap into their home equity by replacing their existing mortgage with a larger one and receiving the difference in cash. This financial strategy can be used for home improvements, debt consolidation, or major expenses. Our calculator helps you determine if cash-out refinancing makes financial sense for your situation by analyzing your available equity, new payment amounts, and total costs including closing fees and PMI.
About the Author
Jurica Šinko
Finance Expert, CPA, MBA with 15+ years in mortgage lending and real estate finance
Connect with JuricaFrequently Asked Questions About Cash-Out Refinancing
Q: What is the maximum LTV for a cash-out refinance in 2025?
For conventional loans, the maximum LTV is 80% of your home's appraised value. This means you must keep at least 20% equity in your home. FHA cash-out refinances allow up to 85% LTV, while VA loans permit up to 90% LTV for eligible veterans. Jumbo loans typically cap at 70-75% LTV. Your lender will order a professional appraisal to determine your home's current market value, which directly impacts how much you can borrow.
Q: How do I calculate if a cash-out refinance makes financial sense?
Calculate your breakeven point: divide total closing costs by monthly payment savings if rates dropped. If rates are higher, the analysis becomes about need vs. cost. For example, if you need $50,000 for home improvements and closing costs are $6,000, you're effectively paying 12% to access that cash. Compare this to alternatives: credit cards (18-25% APR), personal loans (8-15% APR), or HELOCs (7-10% APR). Also consider tax deductions: mortgage interest may be deductible if used for home improvements, while credit card interest is never deductible.
Q: What are typical closing costs for a cash-out refinance in 2025?
Closing costs typically range from 2-6% of the loan amount, averaging $4,000-$12,000 for most borrowers. These include: appraisal fee ($500-$1,000), title search and insurance ($1,000-$2,500), origination fees (0.5-1% of loan amount), recording fees ($50-$500), and potentially points to buy down your rate. Some lenders offer 'no-closing-cost' refinances that roll fees into your interest rate or loan balance. Always compare the APR, not just the interest rate, to see the true cost.
Q: How long does it take to get cash from a cash-out refinance?
The typical timeline is 30-45 days from application to funding. Here's the breakdown: application and pre-approval (1-3 days), document gathering (3-7 days), appraisal (7-14 days), underwriting (7-14 days), and closing/funding (3-7 days). You can speed this up by: having all documents ready (tax returns, pay stubs, bank statements), responding quickly to lender requests, and avoiding new credit inquiries or job changes during the process. After closing, there's a mandatory 3-day right of rescission period before funds are disbursed.
Q: Can I use the cash for anything I want? Are there restrictions?
Unlike purchase mortgages with strict use restrictions, cash-out refinance proceeds can be used for any purpose: debt consolidation, home improvements, investments, education, medical expenses, or even vacations. However, tax deductibility depends on usage. Interest is tax-deductible only when cash is used to 'buy, build, or substantially improve' your home. If you use the money to pay off credit cards or buy a car, that interest portion is not deductible. Keep detailed receipts if you plan to claim the deduction.
Q: How does a cash-out refinance compare to a HELOC or home equity loan?
Cash-out refinances replace your entire mortgage with a new loan, while HELOCs and home equity loans are second mortgages added to your existing mortgage. Key differences: (1) Interest rates: Cash-out refi rates are typically 0.25-0.50% lower than HELOCs. (2) Payment structure: Cash-out refi has fixed payments; HELOCs have variable rates and interest-only periods. (3) Closing costs: HELOCs cost $0-$500 vs. $4,000-$12,000 for cash-out refi. (4) Flexibility: HELOCs let you draw as needed; cash-out gives lump sum upfront. Choose cash-out refi if you need significant cash and can get a better rate; choose HELOC for smaller amounts or ongoing flexibility.
Q: What credit score and income do I need to qualify for a cash-out refinance?
Conventional loans generally require a 620 minimum credit score, but 680+ gets better rates. Debt-to-income ratio (DTI) typically must be below 43-45%, though some lenders allow up to 50% with compensating factors like high credit scores or substantial reserves. You'll need stable income documentation (W-2s, tax returns, pay stubs) showing consistent earnings for the past 2 years. Self-employed borrowers face more scrutiny and may need 2+ years of business tax returns. For the best rates, aim for 740+ credit score and DTI below 36%.
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