Turn Available Home Equity Into a New Mortgage Strategy
Replace your existing mortgage with a new loan while accessing a portion of your available equity in one lump sum.
Review potential options based on your property value, mortgage balance, credit profile, income, and financing goals.
Initial estimates are for educational purposes and do not represent approval or a commitment to lend.
Cash-Out Snapshot
Estimate your available cash
Estimated available cash
$88,500Estimate only — not an approval.
- Estimated current equity
- $340,000
- Estimated new loan
- $460,000
- Est. post-transaction LTV
- 65.7%
- Est. closing-cost range
- $9,775–$13,225
Estimates are for educational purposes only and do not represent an approval, appraisal, loan estimate, or commitment to lend.
One Transaction, Two Financial Changes
A cash-out refinance replaces your current mortgage with a larger new mortgage. The difference, after paying off existing liens and transaction costs, is generally provided to you as cash.
Illustrative example
Illustrative example only. Actual proceeds, fees, value, and terms vary.
Potential Benefits and Important Tradeoffs
Potential Benefits
- Access a lump sum of available equity
- Consolidate mortgage and cash needs into one loan
- Potentially replace variable or short-term debt
- Finance renovations or major expenses
- Potentially adjust the mortgage term
- Maintain one primary housing payment
Important Tradeoffs
- Your current mortgage is replaced
- The new interest rate may be higher
- Closing costs generally apply
- The mortgage term may restart
- Monthly payments may increase
- Your home secures the new debt
- Taking cash reduces remaining home equity
- Long-term borrowing costs may increase
Cash-Out Refinance or HELOC?
Compare the two structures against your priorities.
Select what matters most to you:
Cash-Out Refinance
Best considered when
- You want one lump-sum disbursement
- You are open to replacing the current mortgage
- You want a fixed mortgage structure
- You need a relatively large amount
- The new mortgage terms support your long-term plan
Characteristics
- Replaces existing first mortgage
- Funds provided at closing
- Closing costs typically apply
- Fixed-rate options are usually available
- Interest generally applies to the entire borrowed amount
HELOC
Best considered when
- You want flexible access over time
- You prefer to keep the current mortgage
- You need funds in stages
- You want to borrow only when needed
- Your current mortgage rate is favorable
Characteristics
- Usually remains behind the first mortgage
- Revolving access during the draw period
- Rates are commonly variable
- Payment may change over time
- Interest generally applies to the outstanding balance
Estimate Your Potential Cash-Out Proceeds
Adjust the assumptions to see estimated proceeds, payments, and break-even.
Current equity
$340,000
Max estimated new loan
$560,000
Gross cash available
$200,000
Estimated closing costs
$11,500
Monthly P&I
$2,984
Est. total housing (PITIA)
$3,634
Post-transaction LTV
65.7%
Remaining equity
$240,000
Calculator results are estimates based solely on the information entered. They are not an appraisal, loan estimate, approval, or commitment to lend. Actual property value, loan limits, costs, rates, payments, and proceeds may differ.
How Homeowners Commonly Use Cash-Out Proceeds
Home renovations
Financing improvements adds to the loan balance secured by your home.
Debt consolidation
Consolidating unsecured debt into a mortgage may reduce monthly payments, but it converts that debt into an obligation secured by your home and may extend the repayment period.
Business investment
Using home equity for business carries risk to your primary residence.
Education expenses
Compare against student-loan options and repayment protections first.
Major purchases
Large one-time costs are spread across the full mortgage term.
Emergency reserves
Borrowing to hold reserves increases interest cost over time.
Investment-property down payment
Leveraging one property to acquire another increases overall exposure.
Other significant expenses
Weigh total borrowing cost against the benefit of the expense.
What Mortgage Providers Commonly Review
Requirements vary by lender, state, program, property type, occupancy, and borrower profile.
Quick eligibility checklist
A self-review only. Checking items does not guarantee approval.
Documents You May Be Asked to Provide
Exact documentation depends on the program and applicant profile.
What the Process May Look Like
Initial Review
Property, mortgage, financing goal, and contact information.
Credit and Income Review
Credit authorization and verification of income, assets, and debts.
Property Review
Automated valuation, appraisal, inspection, or other property review may be required.
Title and Underwriting
Review of ownership, existing liens, property eligibility, and loan conditions.
Final Disclosures and Closing
Review final terms, sign closing documents, and complete any required waiting period.
Disbursement
Eligible proceeds are released after closing conditions and applicable rescission periods are satisfied.
Some eligible transactions may qualify for an expedited process. Timelines are not guaranteed. Actual timelines vary based on appraisal, title, document completion, underwriting conditions, lender capacity, and applicable waiting periods.
See How the Structure Changes
Switch priorities to see how the emphasis shifts.
Lower monthly payment
Prioritizing a lower payment may mean a longer term or a different structure. Compare total interest before deciding.
Based on your selected priority, compare cash-out refinancing with a HELOC or home equity loan before choosing a structure.
Designed for a Clearer Borrowing Experience
Renovation Scenario
- Goal
- Finance a major property renovation
- Structure reviewed
- Cash-out refinance versus HELOC
- Key consideration
- Whether replacing the existing mortgage justified the closing costs
Illustrative scenario. Not a customer testimonial. Actual outcomes vary.
Debt Consolidation Scenario
- Goal
- Replace multiple monthly debt payments
- Structure reviewed
- Cash-out refinancing
- Key consideration
- Total long-term cost and converting unsecured debt into debt secured by the home
Illustrative scenario. Not a customer testimonial. Actual outcomes vary.
Major Expense Scenario
- Goal
- Access a large one-time amount
- Structure reviewed
- Cash-out refinance and fixed home equity loan
- Key consideration
- Monthly payment, rate structure, and remaining equity
Illustrative scenario. Not a customer testimonial. Actual outcomes vary.
A Secure Process for Sensitive Financial Information
Encrypted data transmission
Information is transmitted over secure connections.
Identity verification
Steps to help confirm applicant identity.
Controlled document access
Documents are handled through controlled workflows.
Communication consent
Clear, opt-in communication preferences.
Cash-Out Refinance Questions
See What a Cash-Out Refinance Could Look Like
Answer a few questions about your property, existing mortgage, and financing goals to review potential next steps.
No obligation. Estimates are not approvals. Final rates, terms, costs, proceeds, and eligibility are subject to verification and underwriting.