Most lenders cap cash-out refinances at 80% LTV (90% for VA). Compare with a HELOC or home equity loan: if your current rate is much lower than today’s, keeping it and adding a second loan may be cheaper.
How to use the Cash-Out Refinance Calculator
- Current home value
- Current mortgage balance
- Current interest rate
- Remaining term
- Cash out
- New interest rate
- New loan term
- Closing costs (% of new loan)
- Maximum LTV
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the home value, current mortgage details, the cash you want, the new rate and term, closing costs and the lender’s maximum LTV.
Tips
- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.
Common mistakes to avoid
- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.
Inputs explained
| Field | What to enter |
|---|---|
| Current home value | Amount in your currency |
| Current mortgage balance | Amount in your currency |
| Current interest rate | In % |
| Remaining term | Units: years, months |
| Cash out | Amount in your currency |
| New interest rate | In % |
| New loan term | Units: years, months |
| Closing costs (% of new loan) | In % |
| Maximum LTV | In % |
What each result means
- New loan amount = ([Current mortgage balance] + [Cash out])÷(1 – [Closing costs (% of new loan)]÷100)
- Closing costs = [New loan amount]×[Closing costs (% of new loan)]÷100
- New LTV = [New loan amount]÷[Current home value]×100
- Maximum cash out available = max([Current home value]×[Maximum LTV]÷100×(1 – [Closing costs (% of new loan)]÷100) – [Current mortgage balance], 0)
- Current monthly payment = pmt([Current interest rate]÷1200, [Remaining term], [Current mortgage balance])
- New monthly payment = pmt([New interest rate]÷1200, [New loan term], [New loan amount])
- Change in monthly payment = [New monthly payment] – [Current monthly payment]
- Total interest on the new loan = [New monthly payment]×[New loan term] – [New loan amount]
Example values
How the main result changes when Current home value changes and everything else stays at the example values above:
| Current home value | New monthly payment |
|---|---|
| 250,000 | 2,333.79 |
| 375,000 | 2,333.79 |
| 500,000 | 2,333.79 |
| 625,000 | 2,333.79 |
| 750,000 | 2,333.79 |
| 1,000,000 | 2,333.79 |
Formula
Maximum new loan = home value × maximum LTVNew loan = current balance + cash out + closing costs (if financed)New payment = pmt(new rate ÷ 12, new term, new loan)LTV = new loan ÷ home valueWorked example
Inputs — Current home value: $500,000; Current mortgage balance: $280,000; Current interest rate: 4 %; Remaining term: 25 years; Cash out: $80,000; New interest rate: 6.5 %; New loan term: 30 years; Closing costs (% of new loan): 2.5 %; Maximum LTV: 80 %.
Results — New loan amount = $369,230.77; Closing costs = $9,230.77; New LTV = 73.85 %; Maximum cash out available = $110,000.00; Current monthly payment = $1,477.94; New monthly payment = $2,333.79; Change in monthly payment = $855.85; Total interest on the new loan = $470,933.50; LTV check = Within the lender's limit.
Frequently asked questions
How much cash can I take out?
Usually up to 80% of your home's value minus what you owe.
Is a cash-out refinance a good idea?
It can be for high-return uses, but it resets your loan and uses home equity.
Is cash from a refinance taxable?
No – it's borrowed money, not income.
What formula does the Cash-Out Refinance Calculator use?
Maximum new loan = home value × maximum LTV.