See your new mortgage payment and loan-to-value (LTV) when you refinance and take cash out of your home equity. Enter your home value, current balance, cash amount, and new loan terms.
New payment & LTV
A cash-out refinance replaces your existing mortgage with a larger new loan and gives you the difference in cash. Your new loan = current balance + cash taken out, and your new monthly payment is based on that amount at the new rate and term. Lenders cap how much you can borrow against your home's value, usually allowing a maximum loan-to-value (LTV) of 80% — meaning you must keep at least 20% equity. On a $400,000 home, an 80% LTV limits the new loan to $320,000.
Cash-out refinancing is popular for funding home improvements, consolidating higher-interest debt, or covering large expenses, because mortgage rates are typically lower than credit cards or personal loans. The trade-offs: you reset your loan term, pay closing costs (often 2–5%), and reduce your home equity. This calculator shows your new payment, the cash you'd receive, and your new LTV so you can confirm you stay within the 80% limit.
New loan = old balance + cash out. You get the cash; your payment rises with the larger balance.
Most lenders require you to keep 20% equity — so the new loan can't exceed 80% of your home's value.
Closing costs of 2–5% apply, and you reset the term — weigh that against the lower rate vs other borrowing.
A cash-out refinance replaces your mortgage with a larger one and hands you the difference. It is the cheapest large-scale borrowing most households can access, because it is secured on the home — but that security is precisely the risk, since the debt is now attached to somewhere you live. Lenders generally cap the new loan at 80% of appraised value, and the cash available is that ceiling minus what you still owe minus closing costs. The subtle cost is that you are usually refinancing your entire balance at today's rate, which is a bad trade if your existing rate is well below current market.
Maximum new loan = Appraised value × max LTV (typically 80%)Cash available = Maximum new loan − Current balance − Closing costsNew payment = New loan amortized at the new rate over the new termwhere:
Assumptions: Converts unsecured needs into secured debt — default risk becomes loss of the home. Interest is deductible only when proceeds buy, build or substantially improve the residence securing the loan.
A homeowner with a 4.1% mortgage considers cashing out at today's 6.9%.
Result$60,000 cash — but the payment rises $793.09 a month
Only about $390 of that increase relates to the new money; the rest is the penalty for moving $310,000 of cheap debt to an expensive rate. With a low existing rate, a home equity loan or HELOC that leaves the first mortgage untouched is usually far cheaper, even at a higher headline rate.