Cash-Out Refinance
A cash-out refinance lets homeowners replace their current mortgage with a new, larger loan, enabling them to access their home’s equity as cash. Ideal for debt consolidation, home improvements, or investing, cash-out refinancing provides a flexible way to leverage the value of your property.
How Cash-Out Refinancing Works
A cash-out refinance replaces your current mortgage with a new, larger loan to access cash based on your home’s equity. For example, if your home is valued at $300,000 and you owe $200,000, a refinance loan of $270,000 (up to 90% LTV) could provide $70,000 in cash.
Is a Cash-Out Refinance Right for Me?
Consider this option if you:
- Have high-interest debt and want a lower rate.
- Need funds for home improvements, boosting property value.
- Want to invest in education, a new business, or other goals.
Which Cash-Out Option Fits My Needs?
| Loan Type | LTV Limit | Min FICO | Key Details |
|---|---|---|---|
| Conventional 80% | 80% | 620 | Available for primary, second, and investment properties. |
| Conventional 90% | 89.99% | 680 | Primary residences only; no mortgage insurance required. |
| FHA Cash-Out | 80% | 500 | Accessible for homeowners with lower credit. |
| VA Cash-Out | 100% (641+ FICO) | 500 (90% LTV) | Eligible for veterans and active-duty service members. Full cash-out up to 100% LTV for FICO 641+. |
| Non-QM Loans | Varies | Varies | Includes DSCR and bank statement loans for flexible income documentation. |
Understanding Key Terms
- LTV (Loan-to-Value): The ratio of your loan amount to your home’s appraised value. Cash-out refinancing typically allows LTVs up to 90%.
- DTI (Debt-to-Income Ratio): How much of your monthly income goes toward debt payments.
- Appraisal: An expert evaluation of your home’s value to determine the amount you can borrow.
Estimate Your Savings & Home Value
Use our Mortgage Calculator to explore potential monthly savings and find your Home Value Estimate for an accurate starting point.
Ready to Start?
- Connect with Our Team: Let’s discuss your financial goals.
- Apply: Complete an application and provide necessary documents.
- Appraisal: Confirm your home’s current value.
- Close and Cash Out: Access funds and put them to use!
Get a Refinance Quote – Discover how much cash you could access today!
Get Your Personalized Home Equity Report
Discover your home’s current value, learn about your available equity, and see how you can leverage it to achieve your financial goals. Fill out the form to receive your free, customized report.
