Cash-Out Refinance Calculator

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.

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Cash-Out Refinance

New payment & LTV

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New Monthly Payment (P&I)
New Loan Amount
Cash You Receive
New Loan-to-Value (LTV)
Home Equity Remaining

How a Cash-Out Refinance Works

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.

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Bigger Loan, Cash Back

New loan = old balance + cash out. You get the cash; your payment rises with the larger balance.

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80% LTV Cap

Most lenders require you to keep 20% equity — so the new loan can't exceed 80% of your home's value.

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Mind the Costs

Closing costs of 2–5% apply, and you reset the term — weigh that against the lower rate vs other borrowing.

FAQ

Typically you can borrow up to 80% of your home's value (LTV), minus your current mortgage balance. On a $400,000 home with a $220,000 balance, 80% is $320,000, so you could take out up to about $100,000 in cash. This calculator shows your resulting LTV so you can stay within the limit.
It can be, if you use the cash productively (home improvements or paying off much higher-interest debt) and the new rate is reasonable. The downsides are closing costs, a reset loan term, less home equity, and a higher payment. Compare it against a HELOC or home equity loan, which keep your first mortgage intact.
Loan-to-value is your loan amount divided by the home's value, as a percentage. A $320,000 loan on a $400,000 home is an 80% LTV. Lenders use it to gauge risk; cash-out refinances are usually capped at 80% LTV, and a lower LTV can earn you a better rate.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: Freddie Mac PMMS, Consumer Financial Protection Bureau