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 increase your home's 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
Access equity to fund a down payment on an investment property or other financial opportunities.
Up to 80% LTV
Conventional cash-out allows up to 80% loan-to-value — meaning you can access 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. I'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 and are yours to use.
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. I'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 when you need a large sum at a predictable rate; HELOCs are better for ongoing access to smaller amounts. I'll help you compare both for your situation.
Other Refinance Options
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Takes 2 minutes · No credit pull · No obligation