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cash out refinance
A cash-out refinance lets you replace your current mortgage with a new, larger loan and receive the difference in cash.
It can be a smart way to consolidate debt, fund home improvements, invest in real estate, or access equity when refinancing your first mortgage makes sense.
100% secured. No impact to your credit scores.
One loan only, no second mortgages.
receive a lump sum of cash at closing
May be able to eliminate PMI
Lower rates compared to HELOCs and HELOANs
Fixed rate, single payment, potentially lower rate
Tap into the equity you’ve built to get cash when you need it.
Pay off high interest revolving debt and simplify your finances.
Renovate, upgrade and increase the value of your home.
Keep it simple with one loan, one rate and one payment.
Estimate your new payment, possible cash out, refinance costs, and whether it may be worth comparing a HELOC or Home Equity Loan.
See how your current balance, refinance fees, estimated cash out, and remaining equity relate to your home value.
Adjust the numbers to estimate a refinance scenario.
This calculator is for educational estimates only and is not a loan approval, loan estimate, quote, or commitment to lend. Actual payment, interest rate, APR, taxes, insurance, closing costs, and loan terms may vary based on borrower qualifications and lender guidelines.
EQUITY ACCESS OPTIONS COMPARED
|
Option
|
Best For
|
Rate Type
|
Payment Structure
|
Keeps Current Mortgage
|
Access Funds As Needed
|
|---|---|---|---|---|---|
|
Cash-Out Refinance
|
Large expenses, debt consolidation
|
Fixed or Variable
|
Fixed principal & interest payments
|
❌ No
|
❌ No
|
|
HELOC
|
Flexibility, revolving line, on going expenses
|
Variable
|
Interest-only during draw period
|
✅ Yes
|
✅ Yes
|
|
HELOAN
|
One time expenses, fixed rate & payments
|
Fixed
|
Principal & interest payments
|
✅ Yes
|
❌ No
|
If your current mortgage rate is already low, a cash-out refinance may not always be the best option. A HELOC or Home Equity Loan may let you access equity without replacing your first mortgage.
If your current mortgage rate is already low, a cash-out refinance may not always be the best option. A HELOC or Home Equity Loan may let you access equity without replacing your first mortgage.
Before refinancing, compare your new monthly payment, closing costs, loan term, interest rate, and long-term interest. The goal is not just to access cash — it’s to make sure the new loan actually improves your overall financial picture.
Just because you can access home equity does not mean you should pull out the maximum amount. Leaving equity in the home can give you more flexibility later, protect you if home values change, and keep your refinance strategy more conservative.
A cash-out refinance may be a smart way to use your home equity, but it depends on your current mortgage rate, loan balance, credit profile, and how you plan to use the cash.
Compare 3 equity options
Your best option depends on your current rate, equity, credit score, loan amount, and financial goals.
A cash-out refinance replaces your existing mortgage with a new, larger loan. You receive the difference between the two loan amounts in cash at closing.
For example, if your home is worth $500,000 and you owe $250,000, you may be able to borrow up to 80% of your home’s value. In this scenario, you would be able to take out a loan for up to $400,000 and receive $150,000 in cash (before closing costs).
Your new refinance loan will have a new interest rate, term and payment compared to your current. In some cases, it may help you lower your monthly payment, eliminate PMI or you could choose to take a lower term to pay off your mortgage faster – all while giving you the cash you need.
For homeowners, investors, and self-employed borrowers.
✅ Competitive rates and closing costs
✅ Fixed and ARM rates with flexible terms
✅ Income options using bank statements or DSCR rental income
✅ Available for primary, vacation and investment properties
✅ Funds for personal or business use
Get an idea of what rates look like for a cash out refinance today.
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
Compare interest rates for home equity lines of credit.
Qualify using your bank statements for income.
Home Equity Line of Credit for investment properties.
Calculate your house payment with a cash out refinance.
A cash-out refinance replaces your current mortgage with a new, larger mortgage. The difference between your new loan amount and your existing mortgage payoff is given to you in cash, after closing costs.
With a cash-out refinance, you apply for a new mortgage based on your home’s value, current loan balance, credit profile, income, and available equity. If approved, the new loan pays off your existing mortgage, and the remaining available funds are paid to you at closing.
Many homeowners use cash-out refinance funds for debt consolidation, home improvements, purchase another property including investment, business expenses, emergency reserves, education costs, or other major financial goals. The best use depends on your overall financial situation.
No. A cash-out refinance replaces your existing first mortgage with a new mortgage. A HELOC is a separate second mortgage that gives you access to a revolving line of credit while keeping your current first mortgage in place.
A cash-out refinance replaces your current mortgage with a new first mortgage. A home equity loan is typically a separate second mortgage that provides a lump sum of money with fixed payments, while leaving your original first mortgage untouched.
It depends. A cash-out refinance may be better if you want one mortgage payment, need a larger lump sum, or can improve your overall loan terms. A HELOC may be better if you already have a low mortgage rate and do not want to replace your first mortgage.
It depends. If your current mortgage rate is much lower than today’s available rates, replacing your first mortgage may increase your payment or long-term interest cost. In that case, comparing a HELOC or Home Equity Loan may make more sense.
The amount you can receive depends on your home value, current mortgage balance, loan program, credit score, occupancy type, and loan-to-value limits. In general, the more equity you have, the more cash you may be able to access.
In most cases, yes. The lender usually needs to confirm your home’s current value to determine how much equity is available. Some loan programs may offer appraisal waivers if you are leaving a large percentage of equity untapped but that depends on the lender’s underwriting systems.
Credit score requirements depend on the loan program, lender, property type, and overall file strength. Conventional, FHA, VA, jumbo, and Non-QM cash-out refinance options may all have different credit score guidelines.
At Andes Mortgage, we can do cash out refinances with credit scores as low as 520.
Yes. Many homeowners use a cash-out refinance for debt consolidation, especially when paying off high-interest credit cards or personal loans.
Yes, cash-out refinance options are available for investment properties. At Andes Mortgage, we can help you get up to 75% LTV for investment properties.
Cash-out refinance rates can sometimes be higher than rate-and-term refinance rates because the borrower is increasing the loan amount and accessing equity. The final rate depends on credit score, equity, property type, loan program, occupancy, and market conditions.
Yes. Cash-out refinances usually have closing costs, which may include lender fees, title fees, appraisal fees, recording fees, prepaid taxes, insurance, and other transaction costs. In most cases, costs can be rolled into the new loan amount.
Get a personal rate in minutes and explore your best loan options – no impact to your credit.
Book a call and get personalized information.
Skip the wait and get started on your pre-approval asap.