Cash-out refinance calculator
Compare a cash-out refinance with keeping your mortgage and adding a home equity loan.
Your numbers
Rates shown are editable examples, not current offers.
New monthly payment
$1,881Principal and interest on a $290,000 loan, up $629 from your current $1,252.
- Loan-to-value after refinancing
- 64.4%
- Most cash within the 80% loan-to-value limit
- $110,000
- Keep your loan + home equity loan payment
- $1,640
- Five-year interest: cash-out refinance
- $95,096
- Five-year interest: keep + home equity loan
- $55,817
- Owed after five years: cash-out refinance
- $272,240
- Owed after five years: keep + home equity loan
- $247,440
Understand this estimate
The cash-out refinance pays off your current balance and adds the cash and any closing costs you enter to a new fixed-rate loan. The comparison keeps your current loan as scheduled and borrows the same cash with a fixed-rate home equity loan, adding its closing costs to that loan. Payments are principal and interest only; taxes and insurance are the same either way. Five-year interest and balances show where each path leaves you. The loan-to-value limit is an editable example: lenders and loan programs set their own. Excludes mortgage insurance, points, and tax effects.
How the calculation works
A cash-out refinance pays off your current mortgage with a new, larger loan. The calculator adds the cash you want and any closing costs you roll in to your current balance, finds the fixed-rate payment on that new loan, and checks its loan-to-value against the limit you enter.
To show what the cash really costs, it also models the main alternative: keeping your current mortgage as scheduled and borrowing the same cash with a fixed-rate home equity loan. It compares the total monthly payments, the interest each path charges over the first five years, and what you would still owe at that point.
Worked example: $40,000 with a 3.50% mortgage
You owe $250,000 at 3.50% with 25 years left, a payment of $1,251.56, on a home worth $450,000. Taking $40,000 out with a 30-year cash-out refinance at 6.75% creates a $290,000 loan, 64.4% of the home’s value, with a payment of $1,880.93. Keeping the mortgage and adding a 15-year home equity loan at 8.25% instead costs $1,639.62 a month in total. Over five years, the cash-out refinance charges $95,096 of interest against $55,817, and leaves $272,240 owed against $247,440. Adding $6,000 of closing costs to the refinance raises its payment to $1,919.85 and its five-year interest to $97,063. At an 80% limit, the most cash this home supports is $110,000 before closing costs.
Common questions
When can a cash-out refinance cost less?
When your current rate is close to or above the new rate, repricing the whole balance costs little or can even save interest. The gap between your current rate and the new rate drives most of the difference, so enter your own.
How much cash can I take out?
Lenders cap the new loan at a share of the appraised value, and the limit depends on the lender and loan program. The calculator shows the most cash available at the limit you enter, after any closing costs added to the loan. Lenders also review credit, income, and debt-to-income.
Why does the new loan term matter?
A new 30-year term lowers the payment on the larger balance but stretches repayment. Compare what you would still owe after five years, not just the monthly payment. A shorter new term raises the payment and cuts interest.
What about a HELOC instead?
A HELOC can have a lower payment at first because it can be interest-only, but the rate is usually variable. The HELOC payment calculator shows the payment when repayment begins.
Related guides
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