Cash Out Refinance Calculator
Estimated market value of your home
Remaining balance on your mortgage
Your current mortgage interest rate
Number of years left on your mortgage
Amount you want to take out in cash
Typically 2-5% of loan amount
The interest rate for your new loan
Length of your new mortgage
Annual property tax amount
Annual home insurance premium
Private Mortgage Insurance rate
For informational purposes
Cash Out Refinance Summary
- Principal & Interest: $0
- Property Tax: $0
- Insurance: $0
- PMI: $0
- Total Payment: $0
- Principal & Interest: $0
- Property Tax: $0
- Insurance: $0
- PMI: $0
- Total Payment: $0
- Current Total Interest: $0
- New Total Interest: $0
- Interest Cost Difference: $0
- Cash Out Amount: $0
- Closing Costs: $0
- Total Cash Benefit: $0
Visual Analysis
Amortization Schedule
| Period | Payment | Principal | Interest | Balance | Total Interest |
|---|
🔍 What Is a Cash-Out Refinance?
A cash-out refinance is a strategic financial move that allows homeowners to refinance their mortgage for more than they owe—and pocket the difference in cash.
Here’s how it works:
You replace your existing mortgage with a new one, ideally at a better rate, and take out extra funds based on the equity you’ve built in your home. This option is popular for:
Home improvements
Debt consolidation
Emergency expenses
Education or medical bills
Investment opportunities
It’s like hitting reset on your home loan—but this time, you walk away with a check.
📊 What Does a Cash-Out Refinance Calculator Do?
A Cash Out Refinance Calculator is a free online tool that helps you estimate:
✅ How much cash you can take out
✅ Your new mortgage balance and monthly payments
✅ The estimated loan-to-value (LTV) ratio
✅ Total interest over the new term
✅ Closing costs or potential fees (if applicable)
By plugging in your current mortgage info and home value, the calculator provides a snapshot of your refinancing potential—no credit check or paperwork required.
🧮 Inputs You’ll Need for the Calculator
To get accurate results, prepare the following information:
| Required Input | Description |
|---|---|
| Current Home Value | Your home’s market value (get an appraisal or estimate) |
| Remaining Mortgage Balance | The amount you still owe on your current loan |
| Desired Cash Out Amount | The amount of equity you’d like to convert to cash |
| New Loan Term (Years) | Choose between 15, 20, or 30 years |
| New Interest Rate (%) | Estimate based on your credit score or lender quote |
| Closing Costs (Optional) | Include if you know them (~2–5% of loan amount) |
🔁 Example: Let’s Break It Down
Let’s say:
Home value = $400,000
Current mortgage = $250,000
You want $50,000 in cash
New interest rate = 6.0% (30-year term)
✅ New loan amount = $250,000 + $50,000 = $300,000
✅ You walk away with $50,000
✅ Your monthly mortgage changes based on the new rate and term
⚠️ Important: Most lenders cap cash-out refinancing at 80% of your home’s value, so your loan-to-value (LTV) ratio shouldn’t exceed 80%.
🧠 Pros & Cons of Cash-Out Refinancing
✅ Pros:
Lower interest rates than personal loans or credit cards
One consolidated mortgage payment
May be tax-deductible if used for home improvement
Long-term repayment flexibility (15–30 years)
❌ Cons:
Higher monthly payments
Restarting your loan term
Risk of foreclosure if you can’t repay
Closing costs and appraisal fees
💡 Pro Tips Before You Refinance
Check Your Credit Score – Better scores mean better rates.
Understand Fees – Don’t forget closing costs, which could eat into your cash.
Use a Reputable Lender – Not all offers are created equal.
Have a Clear Plan – Know exactly how you’ll use the cash.
🏁 Final Thoughts
A Cash-Out Refinance isn’t just a loan—it’s a financial strategy. Whether you’re upgrading your home, consolidating debt, or investing in your future, tapping into your home equity smartly can be a game-changer.
But don’t go in blind. Use the calculator, compare lenders, and plan your move wisely.
💬 Got questions about your refinance options? Drop them in the comments or talk to a local mortgage advisor.
