Gypes

Home equity borrowing

Cash-out refinance calculator

See how replacing the current mortgage and taking cash out changes the new loan amount, estimated LTV, monthly principal and interest, remaining balance, and equity.

Gather a current mortgage payoff, a defensible property value, and a written fixed-rate refinance scenario. Gray placeholders are examples only and are not used until you enter a value. This tool does not assume one universal LTV limit or choose how you pay closing costs.

1Describe the home and current payoff

Use today’s supportable property value and a current payoff quote—not the original purchase price or loan amount.

2Copy the current mortgage terms

Use the note rate and scheduled whole years remaining from the current statement.

3Enter the cash request and closing costs

Keep the money you want to receive separate from the costs of creating the new mortgage. Select how the entered costs are paid.

4Enter the proposed mortgage and LTV ceiling

The note rate drives amortization. The LTV ceiling is only the lender or policy scenario you want to test; eligibility can depend on many other factors.

5Choose a realistic comparison date

Use the period you expect to keep this mortgage before selling, paying it off, or refinancing again. The result compares both balances at that same date.

What the cash-out refinance calculation does

The calculator replaces the entered current mortgage balance with a new fixed-rate mortgage. The new principal equals the current payoff balance plus requested cash and, when selected, financed closing costs. It then divides that principal by the entered home value to estimate loan-to-value ratio, or LTV. This makes the equity effect visible before the monthly payment is considered.

The result is a scenario, not an approval amount. The maximum LTV field is deliberately supplied by you because limits can depend on lender, loan program, occupancy, property, credit, liens, and current policy. A result below that ceiling does not establish eligibility, acceptable debt-to-income ratio, sufficient appraisal, or affordable monthly cash flow.

Start with documents people can actually find

Use a current payoff quote when possible. A statement balance may omit interest accruing through the closing date or other payoff amounts. Use a supportable property value and rerun the model when an appraisal or better market evidence becomes available. For the new loan, copy the note rate, term, and itemized closing costs from a dated offer or Loan Estimate instead of relying on an advertisement.

The CFPB’s Loan Estimate explainer identifies where to review loan amount, interest rate, monthly principal and interest, closing costs, lender credits, and estimated cash to close. Keep APR visible for offer comparison, but use the note rate—not APR—as the amortization input.

Financed costs do not disappear

If costs are added to the loan, they increase principal, payment, interest, balance, and LTV. If paid in cash, they reduce the modeled cash retained at closing but do not raise the mortgage balance. The calculator applies the entered costs in exactly one of those paths so they are not accidentally omitted or counted twice.

Real closing cash can also include prepaid interest, escrow funding, taxes, payoff adjustments, lender credits, refunds, or other items outside this simplified model. Compare the output with the actual “Calculating Cash to Close” amounts. The CFPB provides official refinance Loan Estimate and Closing Disclosure samples.

Why the same-date balance comparison matters

A 30-year cash-out loan can have an attractive required payment while leaving substantially more debt five or ten years later. The table calculates both fixed-rate paths to the same horizon and displays cumulative payments, interest paid, and remaining balances. This prevents a restarted term from looking cheaper merely because principal is repaid more slowly.

The payoff-equivalent comparison adds modeled payments and remaining balance. For the cash-out path it also includes any cash-paid closing costs and credits the requested cash received. The resulting difference estimates the additional financing cost or advantage through the selected date; it does not value whatever the cash is used to purchase or repay.

Converting other debt into mortgage debt changes the risk

Using home equity to repay a credit card, vehicle loan, or other obligation can lower an interest rate, but it also converts debt into an obligation secured by the home and may extend repayment. A January 2025 CFPB research report on cash-out refinancing notes that this can make sense when extraction cost is lower, while also warning that unsustainable mortgage payments can put the home at foreclosure risk.

If the cash will repay another debt, compare both complete paths: keep the current mortgage and continue the other debt, versus replace the mortgage and eliminate that debt. Include origination costs, payoff time, remaining balances, and the possibility of creating new balances later. A mortgage payment alone cannot answer that decision.

Check the complete housing payment

The calculator reports principal and interest only. Property taxes, homeowners insurance, flood insurance, mortgage insurance, association charges, and escrow changes can affect actual monthly cash flow. A higher LTV or different loan program may change mortgage insurance. Add those amounts from the written scenario before deciding the payment is comfortable.

Review the final disclosure before closing

Compare the final loan amount, rate, payment, costs, cash to close, and other terms with the most recent Loan Estimate. The CFPB’s Closing Disclosure explainer says borrowers should check these details and ask about unexpected changes. Recalculate the scenario whenever the appraisal, payoff, rate, points, credits, fees, cash amount, term, or likely holding period changes.

Use the mortgage refinance calculator when no new cash is being borrowed. Compare a second-lien alternative with the home equity loan calculator and HELOC payment calculator, then read the mortgage refinance guide.

This calculator provides general educational arithmetic, not a mortgage recommendation, appraisal, approval estimate, loan offer, or financial, tax, insurance, legal, or foreclosure advice. It models one fixed-rate current loan and one fixed-rate refinance; it excludes other liens, adjustable rates, balloon terms, escrow, mortgage insurance changes, taxes, benefits from using the cash, and investment opportunity cost. Verify all figures and risks with current official documents and qualified professionals.