Cash-Out Refinance Calculator

You replace your existing mortgage with a new, larger loan, and receive the difference between the new loan amount and your old mortgage balance as cash at closing. Unlike a HELOC or home equity loan, a cash-out refinance replaces your entire mortgage rather than adding a second loan on top of it.

Lenders cap the new loan at a maximum loan-to-value ratio, commonly 80% for conventional loans (up to 90% for some VA cash-out refinances). Maximum new loan = home value × max LTV%. Your cash out = maximum new loan − your current mortgage balance − any closing costs rolled into the loan.

Because you're borrowing more than your old balance (the amount you cashed out, plus any rolled-in closing costs), a larger loan can still mean a higher payment even if the new interest rate is lower than your old rate — the increased principal often outweighs the rate savings.

No — a HELOC or home equity loan is a separate loan alongside your existing mortgage. A cash-out refinance replaces your existing mortgage entirely with one new, larger loan, so you only have one mortgage payment going forward, but you also reset the clock on your loan term and closing costs apply to the whole new loan amount.

Cash-out refinance closing costs are typically similar to a standard refinance (about 2-5% of the loan amount) but apply to the new, larger loan amount — many borrowers roll these costs into the new loan rather than paying them upfront, which slightly increases the loan balance and payment.