Cash-out refinance · Put your equity to work

Turn the equity you’ve built into cash for what’s next.

A cash-out refinance replaces your mortgage with a new, larger one and pays you the difference at closing. People use it for renovations, paying off higher-rate debt, tuition or their next property. Your loan officer compares it with a HELOC, so you see which fits.

See how much cash I can get

See cash-out next to a HELOC, with the costs of each, before you touch your equity.

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What to know.

The essentials, in plain English.

Borrow at a mortgage rate: Mortgage rates are usually lower than credit card or personal loan rates. If you pay off other debt, weigh the total cost over the life of the new loan.
One loan, one payment: Your new mortgage replaces the old one, so you still have a single monthly mortgage payment.
A fixed rate if you want one: Choose a fixed rate on the whole new balance, so your principal and interest stay predictable.
Weighed against a HELOC: Your loan officer shows a cash-out refinance next to a HELOC, so you see which costs less for your plans.

See how much cash I can get

What happens after you press the button.

Your loan officer reaches out: Andrew reads what you send personally and gets in touch to talk it through.
What you’ll talk about: What the money is for, roughly what your home is worth and what you owe, so cash-out and a HELOC can be compared.
What to have handy: Your latest mortgage statement, and a rough idea of how much you’d like to take out.

See how much cash I can get

Who it fits
Homeowners with equity and a clear plan for the money.
- Owners planning a renovation
- Owners paying off higher-rate debt
- Owners funding tuition or a large expense
- Investors raising money for their next property
See how much cash I can get
What you’ll need
Your loan officer confirms the list for your loan.
- Your latest mortgage statement
- Recent pay stubs, W-2s and tax returns
- Your homeowners insurance details
- Bank statements
See how much cash I can get

Cash-out refinance or HELOC?

	Cash-out refinance	HELOC
Your first mortgage	Replaced by one new, larger loan	Stays as it is, rate and all
How you get the money	All at once, at closing	As you need it, up to your limit
Rate	Fixed or adjustable, on the whole loan	Usually adjustable, on what you draw
Often fits when	A new rate on the whole loan works in your favor	You want to keep your current mortgage

Common questions

Cash-out refinance or HELOC?

A cash-out refinance replaces your mortgage with one new loan; a HELOC adds a line of credit and keeps your first mortgage. If your current rate is low, a HELOC often keeps it.

How much cash can I take out?

Lenders limit your new loan to a share of your home’s value, which depends on the loan type and the property. An appraisal confirms the value, and your loan officer can estimate your range.

Is the cash taxable?

Money from a cash-out refinance is a loan, not income. Ask a tax professional how the interest is treated in your situation.

What can I use the money for?

Renovations, paying off debt, tuition, a down payment on another property, or other goals. Some loan types ask what the money is for.

Does a cash-out refinance have closing costs?

Yes, like any refinance: lender fees, an appraisal and title costs. Your Loan Estimate lists them before you commit.

Can I do a cash-out refinance on a rental?

Yes. Many lenders offer cash-out refinances on investment properties, with stricter requirements than on the home you live in.

How long do I need to own my home first?

Most cash-out loans have a waiting period after you buy or last refinanced. Your loan officer can tell you when you’re eligible.

Will checking my options affect my credit?

Answering a few questions doesn’t check your credit. A credit check comes later, only with your permission, and your loan officer can explain how it may affect your score.

What if I don’t qualify?

Your loan officer can look at a HELOC or a smaller cash-out amount, and explain what would change the answer.

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