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Cash-out refinance

Cash out refinance calculator: how much cash, and at what cost

A cash-out refinance replaces your mortgage with a bigger one, usually up to 80% of the home's value. On a $500,000 home with $250,000 owed, that allows up to $141,000 after $9,000 of costs; taking $60,000 at 7.11% raises the payment by $724.87. This cash out refinance calculator also prices the HELOC alternative.

HELOC Payment Calculator editorial teamUpdated 10 sources

Calculator

Cash-out refinance vs. mortgage + HELOC

Cash available, new payment and cost over the years you keep it

Home and current mortgage

$
$
%
years

Cash-out refinance

$
%
%
years
$
Pay closing costs

The alternative: keep the mortgage, add a HELOC

%
years
years
$
years
New payment$2,145.93$724.87 more than today's $1,421.06
Cash out$60,000new loan $319,000 (63.8% LTV)
Same cash with a HELOC$1,796.06/momortgage + interest-only line at 7.50%
Blended rate if you keep the mortgage5.081%vs. 7.11% on the whole cash-out loan
Cost over 10 yr (payments + balance still owed, costs included)
OptionMonthly at the startTotal
Cash-out refinance$2,146$531,958
Keep mortgage + HELOC$1,796$452,414

On these inputs the mortgage + HELOC costs $79,544 less over the period. The HELOC figure assumes its rate stays at 7.50%.

How it is calculated. Maximum cash = value × maximum LTV − mortgage balance − closing costs (if added to the loan). New payment = (balance + cash + rolled costs) × r ÷ (1 − (1 + r)−n). Cost over the period = payments made + balance still owed (+ costs paid in cash) for each option; the HELOC option keeps today's mortgage and adds an interest-only line for the same cash. Blended rate = (balance × current rate + cash × HELOC rate) ÷ (balance + cash).

How much cash can you take out?

The cash available is the new loan the lender allows minus what you owe now, minus any closing costs added to the loan. For a one-unit principal residence, Fannie Mae's eligibility matrix caps a cash-out refinance at 80% loan-to-value.[1]

Maximum cash = value × 80% − mortgage balance − rolled-in costs$500,000 × 80% − $250,000 − $9,000 = $141,000

Cash available at an 80% limit, $250,000 owed, by home value (costs added to the loan)
Home valueMaximum new loanCash after costs
$400,000$320,000$61,000
$450,000$360,000$101,000
$500,000$400,000$141,000
$600,000$480,000$221,000
$750,000$600,000$341,000

Staying at or under 80% also means a conventional loan needs no private mortgage insurance; the PMI calculator shows what PMI would cost above that. If you pay the closing costs in cash instead, the maximum cash rises by that amount but you bring the money to closing. Lenders' own limits and other loan programs differ; VA, for example, offers a cash-out refinance to eligible veterans living in the home, including refinancing a non-VA loan.[7]

Cash-out refinance vs. HELOC

A cash-out refinance re-prices your whole mortgage at the new rate; a HELOC leaves the existing mortgage alone and charges its own, usually variable, rate only on the cash. A home equity loan pays a lump sum, while a HELOC lets you draw as you go and its payment varies with the balance.[8] The quickest test is the blended rate: if you keep the mortgage and add a HELOC, the average rate on all your debt is:

Blended rate = (balance × current rate + cash × HELOC rate) ÷ (balance + cash)($250,000 × 4.5% + $60,000 × 7.50%) ÷ $310,000 = 5.081%

Here that is 5.081% against 7.11% on the whole cash-out loan, before closing costs. When your current rate is well below today's, refinancing all of it to get a smaller sum of cash is the expensive route.

Which costs less over 10 years: $60,000 by cash-out refinance at 7.11% or by HELOC at 7.50% (HELOC fees $0, refinance costs $9,000)
Current mortgage rateBlended rate with a HELOCMonthly: refinance / mortgage + HELOCCheaper optionBy
3%3.871%$2,146 / $1,594Mortgage + HELOC$113,680
4%4.677%$2,146 / $1,727Mortgage + HELOC$91,084
5%5.484%$2,146 / $1,867Mortgage + HELOC$67,855
6%6.290%$2,146 / $2,015Mortgage + HELOC$44,068
7%7.097%$2,146 / $2,169Mortgage + HELOC$19,798
8%7.903%$2,146 / $2,330Cash-out refinance$4,884

On these inputs the HELOC route costs less until the current mortgage rate reaches about 8%; above that, refinancing the expensive mortgage is worth the costs. The HELOC column assumes its rate stays at 7.50% for 10 years. HELOC rates follow the prime rate, 7.00% on November 12, 2026,[10] so test a higher rate in the calculator. The home equity loan vs. HELOC page compares the fixed-rate option too.

Is a cash-out refinance a good idea?

A cash-out refinance is a good idea mainly when the new rate is close to or below your current one and you will keep the loan long enough to earn back the costs. The CFPB notes refinancing costs can be about the same as your original purchase loan, and its rule of thumb is to go ahead only if the new rate saves that amount within about two years.[2] It also warns that if you may move within a few years, you might not recoup the cost.[3]

  • Often sensible: your current rate is near or above today's rate; you want one fixed payment; you need a large sum and will stay for years.
  • Often costly: your current rate is low; you need a modest amount; you may sell soon; the cash is for spending rather than the home.
  • Either way: the new loan restarts the term, so a lower monthly payment can still mean more total interest; the refi calculator shows the break-even month for a rate-and-term refinance.

Costs, rescission and taxes

Closing costs on a purchase typically run 2% to 5% of the price, and a refinance can cost about as much.[4][2] Put the figures from your Loan Estimate into the calculator rather than a percentage. If the loan is secured by your principal dwelling, federal rules give you until midnight of the third business day after closing to cancel, and the lender cannot pay out the cash before then; if you refinance with your current lender, the right covers the new money borrowed.[5]

For taxes, the refinanced loan counts as home acquisition debt only up to the old mortgage's balance; cash out that is not used to buy, build or substantially improve the home is not acquisition debt, so its interest is not deductible as mortgage interest. Points on a refinance are generally deducted over the life of the loan.[6] See is HELOC interest tax deductible for the same rule on a line of credit.

Worked example

  1. Limit: $500,000 × 80% = $400,000. Minus $250,000 owed and $9,000 of costs added to the loan = $141,000 available.
  2. New loan: $250,000 + $60,000 + $9,000 = $319,000 (63.8% LTV). At 7.11% for 30 years the payment is $2,145.93, up from $1,421.06.
  3. Alternative: keep the 4.5% mortgage and draw $60,000 on a HELOC at 7.50%: $1,421.06 + $375.00 interest-only = $1,796.06 a month.
  4. Over 10 years, counting payments and what is still owed, the mortgage + HELOC costs $79,544 less.

Before you chooseCheck how much you can borrow against the home with the HELOC LTV calculator, and the ways out of a line later on can you refinance a HELOC. Rates here are examples; use the rates and costs on your own Loan Estimate and HELOC disclosures.

Frequently asked questions

How much cash can I take out with a cash-out refinance?

Usually up to 80% of the home's value minus what you owe, and minus closing costs if they are added to the loan. On a $500,000 home with $250,000 owed: $150,000 before costs.[1]

Is a cash-out refinance better than a HELOC?

When your current mortgage rate is close to or above today's rate, often yes. When it is lower, keeping it and adding a HELOC usually costs less; compare the blended rate with the new rate.

Does a cash-out refinance increase my monthly payment?

Usually, because the loan is bigger and often at a higher rate. In the example the payment rises by $724.87 a month even though the term restarts at 30 years.

Is cash-out refinance interest tax deductible?

Only the part that refinances the old balance, or that you spend to buy, build or substantially improve the home, counts as home acquisition debt.[6]

Sources

  1. Eligibility Matrix (Selling Guide) · Fannie Mae, August 5, 2026
  2. Your home loan toolkit: A step-by-step guide · Consumer Financial Protection Bureau, July 2026
  3. Should I refinance? (handout) · Consumer Financial Protection Bureau, n.d.
  4. Figure out how much you want to spend (Owning a Home) · Consumer Financial Protection Bureau, updated February 18, 2026
  5. Regulation Z § 1026.23, Right of rescission (closed-end credit) · Consumer Financial Protection Bureau, current as of November 10, 2026
  6. Publication 936 (2025), Home Mortgage Interest Deduction · Internal Revenue Service, for 2025 returns, reviewed April 30, 2026
  7. VA cash-out refinance loan · U.S. Department of Veterans Affairs, updated January 7, 2026
  8. What is the difference between a home equity loan and a home equity line of credit (HELOC)? · Consumer Financial Protection Bureau, reviewed August 28, 2026
  9. Primary Mortgage Market Survey (PMMS) · Freddie Mac, week of November 12, 2026
  10. H.15 Selected Interest Rates (bank prime loan rate) · Board of Governors of the Federal Reserve System, release of November 12, 2026