Cash-out refinance calculator

Frequently asked questions

How is net cash to the borrower different from the requested cash-out amount?

The requested cash-out is the gross amount added to the loan balance. Closing costs are deducted from that amount before any cash reaches the borrower, so net cash is always lower than the headline figure unless closing costs are rolled into the loan separately.

What does loan-to-value mean in a cash-out refinance context?

Loan-to-value (LTV) is the new loan balance divided by the appraised home value. Lenders use LTV to assess risk and determine eligibility — programs typically cap the maximum LTV for cash-out refinances, and exceeding certain thresholds can affect rate pricing or require mortgage insurance. Check current lender guidelines for specific limits, as they vary by program.

Will a cash-out refinance always raise my monthly payment?

Not necessarily, but it usually does. The new loan is larger than the original balance, and if rates have risen since you took out the original mortgage, both factors push the payment higher. In some cases, refinancing at a meaningfully lower rate can offset the higher balance.

Are closing costs the same for a cash-out refinance as for a regular refinance?

The cost categories are similar — origination fees, title, appraisal, and prepaid escrow items — but cash-out refinances sometimes carry rate premiums or additional fees compared to rate-and-term refinances. Actual costs vary by lender, loan size, and market conditions.