See the cash you'll receive, the new monthly payment, and the 30-year cost.
Project a cash-out refinance at 80% LTV: how much you can take, new monthly payment, closing costs rolled in, and the lifetime cost of borrowing.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
New mortgage for more than you owe; the difference is paid in cash.
You take out a new, larger mortgage that pays off your existing one. The extra amount is given to you in cash at closing. Most lenders cap cash-out at 80% LTV.
Up to 80% LTV minus existing mortgage balance.
If your home's worth $500k and you owe $200k, max cash-out is (500 × 0.80) − 200 = $200k. VA loans allow 100% LTV cash-out. FHA allows 80%.
For high-rate debt payoff or major investments, yes. For lifestyle spending, no.
Good: paying off 22% credit-card debt with 7% mortgage debt, funding a major home improvement, consolidating high-interest debt. Bad: vacation, car, lifestyle. You're trading short-term cash for 30 years of mortgage payment.
Closing costs and a higher monthly payment.
Closing costs run 2–5% of the new loan (rolled in or paid out of pocket). Your monthly payment increases due to the larger principal, and if rates are higher than your old loan, the rate also goes up on the entire balance.
The mechanics in short answers. No jargon, no upsell.
They'll order an appraisal to confirm current market value. The 80% LTV cap is based on this appraised value.
Subtract your existing mortgage balance from 80% of appraised value. Subtract closing costs (rolled in). That's your maximum cash-out.
Your new monthly P&I is calculated on the new (larger) loan amount at the new rate. Includes the cash you took plus the original balance plus closing costs.
Lender pays off your old loan directly. You walk away with the cash difference (minus closing costs if paid out of pocket).
Worked example: On a $550,000 home with a $240,000 balance, the 80% LTV cap allows up to $200,000 cash out. Taking $80,000 with 3% closing costs rolled in makes the new loan $329,600; at 7% for 30 years the payment is about $2,193/mo, and the $80,000 of cash ends up costing roughly $469,000 over the loan's life.
The old payment is approximated by re-amortizing your current balance over 30 years at your current rate, and the new loan is simulated month by month. This ignores taxes and any prepayment penalties. Everything runs locally in your browser; your numbers never leave this page.
Designed so anyone can model their situation in under a minute, with or without a finance background.
At 80% LTV, minus existing balance and closing costs.
New payment vs old: the delta you live with for 30 years.
Lifetime cost of the cash you're taking out.
2–5% built in, not a footnote.
Old rate vs new rate effect on monthly.
Months to recoup closing costs if rate is lower.
Everything you might ask before, during, or after using this tool.
On a conventional cash-out: no. FHA: up to 80%. VA: up to 100% in some cases. Some specialty lenders offer up to 90% cash-out on conventional with steep rate premiums and PMI requirements.
Mortgage interest on cash-out is deductible only if the cash is used to "buy, build, or substantially improve" the home (per IRS rules post-2017). Cash used for debt consolidation, car purchase, or lifestyle is not deductible. Track use carefully.
Cash-out refi: replaces your existing mortgage with a larger one at a new rate. HELOC: a second mortgage that doesn't touch your existing first. HELOC keeps your low first-mortgage rate intact, usually better in a rising-rate environment.
When current mortgage rates are higher than your existing rate, since you don't want to re-rate the whole balance. HELOC adds a second loan at current rates but keeps the first untouched. Most homeowners with 3–4% mortgages should use HELOC, not cash-out refi.
Conventional cash-out: 620+ minimum, 700+ for best rates. FHA: 580+ technically; lender overlays push to 620+. VA: no minimum federally, but most lenders require 620+. Lower scores mean worse rates which compound the cost of taking cash out.
Typically 30–60 days from application to funding. The appraisal is the biggest variable: 2–3 weeks for the appraisal, then underwriting, then closing. Plan for two months end-to-end.
Anything: debt consolidation, home improvement, college tuition, business investment, even vacation. But cash from a refi isn't free; you're paying mortgage interest on it for 30 years. Match the use to the borrowing horizon.
Almost never. You're borrowing at your mortgage rate (7%+) to invest at uncertain returns. Closer to leveraged speculation than investing. Better strategies: max retirement accounts first, taxable brokerage second, then consider it only if you can lock in a clearly higher expected return.
Other Lazysmirk tools that pair well with this one.
Find out if refinancing your mortgage actually saves money. Break-even month, lifetime interest savings, and the term-reset trap, all in one calculator.
See your home equity, current LTV, and how much you could borrow with a HELOC or home equity loan.
Calculate your true monthly mortgage payment with taxes, insurance, and PMI included. See how much interest you'll actually pay over 30 years.
Estimate your total US mortgage closing costs (lender fees, title, government taxes, and prepaids) and find out exactly how much cash you need to close.
See the full month-by-month amortization schedule for any loan: EMI, principal vs interest split, and total interest paid. Works for home, car, personal, and student loans.
Paying off 18%+ APR debt with 7% mortgage rate: clear win on rate spread.
Funding a real home improvement that increases value (kitchen, bath): often pays for itself in appreciation.
Consolidating multiple high-rate debts when your current mortgage rate is similar to current rates: simplification + savings.
Bridging a major life event when no better option exists: defensible.
Current mortgage rate is 3–4% and current rates are 6–7%: you're re-rating $300k of debt to save on $50k of cash. Math fails.
Using cash for lifestyle (vacation, car, big-screen TV): you're paying 30 years of interest on a consumable.
Investing the cash in stocks: leveraged speculation, not investing.
When a HELOC keeps your first mortgage intact: cheaper, faster, less paperwork.
Cash-out: one loan, locked rate, 30-year term, but re-rates your entire balance.
HELOC: second loan, variable rate, 10-year draw + 20-year repay, but first mortgage stays put.
In a low-rate-first-mortgage environment (your 3% from 2021): always HELOC, almost never cash-out.
In a rising-rate environment where your old mortgage is similar to current rates: either works.
Closing costs are typically 2–5% of the new loan: $5–15k on a $300k cash-out.
Either rolled into the loan (paid via higher principal + interest) or paid out of pocket at close.
A larger closing-cost rollover is fine when borrowing for productive use. It's expensive when the cash is consumed.
Two short notes worth reading before you trust any number on this page.
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We are not a bank, NBFC, advisor, broker, or distributor of any financial product. The numbers shown here are estimates for educational purposes only, based on the inputs you provide.
Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
