What You Can Do with a Cash-Out Refi
Home Improvements
Renovate your kitchen, add a bathroom, or build an ADU — using equity you've already built to add more value.
Debt Consolidation
Replace high-interest credit card or auto debt with a single lower-rate mortgage payment.
Education or Major Expenses
Fund college tuition, medical bills, or major life events at mortgage rates rather than personal loan rates.
Investment Opportunities
Use equity to fund a down payment on an investment property or other financial goals.
Up to 80% LTV
Conventional cash-out allows up to 80% loan-to-value — meaning up to 80% of your home's current value.
Potentially Lower Rate Too
If rates are lower than your current loan, your cash-out refi can deliver both cash and a lower payment.
Cash-Out Refinance Requirements
- ✓Credit Score: 620+ for conventional; 580+ for FHA cash-out
- ✓Equity: Conventional allows up to 80% LTV; FHA cash-out up to 80% LTV; VA cash-out up to 90–100% LTV
- ✓Income: Full income and employment verification required
- ✓DTI: Debt-to-income ratio calculated with new, higher loan balance
- ✓Appraisal: New appraisal typically required to establish current value
- ✓Seasoning: Most programs require the property to be owned for at least 6–12 months
Cash-Out Refi FAQ
How much cash can I take out?
With conventional financing, you can borrow up to 80% of your home's current appraised value. For example, if your home is worth $500,000 and you owe $250,000, you could potentially access up to $150,000 in cash. We'll calculate your exact maximum based on your home value and current balance.
Are there restrictions on what I can use the cash for?
No — there are no restrictions on how you use cash-out refinance funds. Common uses include home improvements, debt consolidation, education costs, and investment property down payments. The funds arrive at closing.
Will my monthly payment go up?
Typically yes — a higher loan balance means a higher payment, even if the rate is the same or lower. The exception is when rates have dropped significantly from your original loan. We'll show you the exact before-and-after payment comparison for your scenario.
How does a cash-out refi compare to a HELOC?
A cash-out refi gives you a lump sum at a fixed rate, replacing your first mortgage. A HELOC is a separate line of credit at a variable rate. Cash-out refis are often better for large, one-time needs at a predictable rate; HELOCs are better for ongoing access to smaller amounts. We'll help you compare both.
Other Refinance Options
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Takes 2 minutes · No credit pull · No obligation