Cash out refinance calculator
A cash out refinance replaces your entire mortgage with a larger one and hands you the difference in cash. This calculator shows the new payment against your old one plainly, since a cash out refinance can raise your payment even when the new rate is lower, simply because the loan itself is bigger.
vs $2,024/mo now, on a new loan of $320,000
Your new payment is $2,076 a month, higher than your $2,024 payment now.
- •That is because you are borrowing an extra $40,000 on top of the $280,000 you already owe.
- •Because your payment went up instead of down, there is no monthly savings to pay back the $8,000 in closing costs over time, the way there would be with a typical refinance.
- •Instead, treat that $8,000 as the straight up cost of turning $40,000 of your home equity into cash today.
| Metric | Current mortgage | New mortgage |
|---|---|---|
| Loan amount | $280,000 | $320,000 |
| Interest rate | 7.25% | 6.75% |
| Monthly payment | $2,024 | $2,076 |
| Interest owed from today forward | $327,158 | $427,185 |
| Cash you get today | $0 | $40,000 |
| Closing costs to get there | $0 | $8,000 |
Most lenders cap a cash out refinance at around 80% loan to value. At 71.1% loan to value here, this amount is within that typical cap, though your own lender's limit can still vary.
A free account keeps your numbers ready across every calculator, no re entering them each time.
How this calculator works
- Step 1Enter your current mortgage
Balance, rate, years left, and your home value.
- Step 2Enter the new loan
How much cash you want out, the new rate, term, and closing costs.
- Step 3See the real comparison
New payment versus old payment, and a break even point only when one actually exists.
Frequently asked questions
Why did my payment go up even though the new rate is lower?
A cash out refinance adds the cash you take out directly to the loan balance, so even a lower rate can be outweighed by a larger loan amount. This calculator shows that plainly rather than only highlighting the rate.
Is there always a break even point on a cash out refinance?
No. A break even point only exists when your new payment is actually lower than your old one, at which point the monthly savings eventually pays back the closing costs. If your new payment is higher, which is common with a meaningful cash out amount, the tradeoff is simply about accessing that cash now, not a future payback.
How much cash can I actually take out?
Lenders commonly cap a cash out refinance around 80% loan to value, meaning your new loan generally cannot push your total mortgage debt above about 80% of your home value. This calculator shows your resulting loan to value so you can check it against that common limit.
What can the cash from a cash out refinance be used for?
Anything, there is no restriction on use once the loan closes, common uses include debt consolidation, home improvements, or covering a large expense. Keep in mind you are converting that amount into long term mortgage debt secured by your home, worth weighing against other borrowing options.
Are closing costs on a cash out refinance different from a regular refinance?
Not usually, closing costs are typically 2% to 5% of the new loan amount either way, covering the appraisal, title, and lender fees. Since a cash out loan amount is often larger, the dollar amount of those costs can end up higher even at the same percentage.
More refinancing calculators
Compare your current payment to a new rate and term, and see the break even point.
The total dollar question: how much refinancing saves or costs over the full loan life.
Same mortgage, two ways to refinance it. See what taking cash out really costs you each month.
Every number on this page is a planning estimate, for informational and educational purposes only, not professional advice.
Before you act on any major decisions, consult a qualified accountant, tax advisor, or financial advisor who knows your full picture.