Cash-Out Refinance

A cash-out refinance allows homeowners to access home equity by replacing their mortgage with a larger loan, receiving cash back.

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What Is a Cash-Out Refinance?

A cash-out refinance is the replacement of an existing mortgage with another mortgage under different terms and takes cash out of your home equity. This type of refinance allows you to make home improvements, consolidate debt, or cover unexpected medical bills. Refinancing and taking out cash out on the equity of your home can give you access to a large lump sum of cash which can be used in a number of ways to improve your situation.

Benefits of a Cash-Out Refinance

A cash-out refinance is best for those who need extra funds and have enough home equity to leverage, though it may result in a higher loan balance and potentially higher monthly payments

Access to Cash – Homeowners can use the equity for home improvements, debt consolidation, investments, or other financial needs
Potentially Lower Interest Rate on Debt – Replaces high-interest debt (like credit cards) with a lower mortgage rate
Increases Home Value – Funds can be used for renovations, which may boost property value
Consolidate Multiple Loans – Allows homeowners to roll in a second mortgage or HELOC into a single loan

Cash-Out Refinance Options

Discover flexible loan options for a cash-out refinance.

Conventional

Allows homeowners to borrow up to 80% of their home’s value while replacing their existing mortgage.

FHA

Backed by the Federal Housing Administration, this option provides more flexible credit and income requirements.

VA

Exclusive to eligible buyers, the VA cash-out refinance allows borrowing up to 100% of the home’s value.

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How to Refinance a House

Our refinance process has been carefully designed, with you in mind. Making it easier, faster, and strategically smarter.

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Cash-Out Refinance FAQ

What can I use the cash from a refinance for?

The money you receive from a cash-out refinance is flexible and can be used for almost anything, including home renovations, paying off high-interest debt, covering college tuition, investing, or even funding large purchases or expenses.

How much equity do I need for a cash-out refinance?

Most lenders allow you to borrow up to 80% of your home’s current value, which means you need to have at least 20% equity in your home. Some government-backed loans (like FHA or VA loans) may allow you to borrow a higher percentage of your home’s value.

Are there risks associated with a cash-out refinance?

One risk is that you’re increasing your mortgage balance, which could lead to higher monthly payments or a longer repayment period. Additionally, because you’re borrowing against your home’s equity, there’s a risk of foreclosure if you’re unable to repay the loan.

Do I need an appraisal for a cash-out refinance?

Yes, most lenders will require a home appraisal to determine your home’s current market value and assess how much equity you have available for borrowing.

What is the difference between a cash-out refinance and a home equity loan?

A cash-out refinance replaces your existing mortgage with a new one, increasing your loan balance, while a home equity loan is a second loan in addition to your first mortgage. Both allow you to access your home’s equity, but a cash-out refinance consolidates your debt into one loan, whereas a home equity loan leaves your original mortgage unchanged.

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