Turn the equity you have built into cash.
A cash-out refinance replaces your mortgage with a larger one and hands you the difference at closing. Use it for renovations, debt, tuition or an investment. The rate is often lower than a card or personal loan, but the term is longer and your home secures it, so we show you the whole cost, not just the rate.
Quotes are free and start with no hard credit inquiry. Licensed in 39 states, rated 4.9 across 5,300+ Google reviews.
A $450,000 home, as an example
What you still owe
$285,000
You could take out
$75,000
Stays yours by rule
$90,000
Most conventional and FHA cash-out programs on a primary home stop at 80 percent of the value, so a fifth of your home stays as equity; the exact cap depends on the program, property and occupancy. VA cash-out can go higher for eligible veterans, subject to VA and lender rules.
What a cash-out refinance actually is.
Every payment you make and every dollar your home gains in value builds equity, which is the part of the house you own outright. A cash-out refinance lets you borrow against that equity. You take a new mortgage larger than the one you have, the old loan is paid off at closing, and the difference comes to you as cash.
It is not a second loan or a second payment. When it is done you have one mortgage, one rate and one monthly payment, on the new balance. That is the main difference between this and a home equity line, which sits behind your first mortgage and usually carries a variable rate.
Most lenders let you borrow up to 80 percent of what your home is worth, so you keep at least a fifth of the value as equity. VA rules permit eligible veterans to go higher, up to 100 percent of the value, though most lenders cap it at 90. If you want a lower rate or a shorter term without taking money out, a rate-and-term refinance is the simpler and cheaper option.
What homeowners do with the cash.
The money is yours to use for anything. These are the reasons we hear most.
Renovate the house
Kitchens, additions, roofs and windows. Improving the home with money borrowed against the home is the most common reason people do this, and interest may be deductible when the funds go into the property. Ask your tax advisor.
Clear high-interest debt
Credit cards and personal loans often carry much higher rates than a mortgage. Rolling them into one fixed payment can lower the rate you pay, though a longer term can raise the total cost; we show both numbers, and it only works if the balances stay paid off.
Pay for education
Tuition, a degree for yourself or support for a child. Depending on your situation, a mortgage rate can be lower than some private education financing, with one predictable payment instead of several; compare the total cost over the term before deciding.
Fund a business
Some owners compare home-equity borrowing with the business financing available to them. The rate can be lower and nothing is given up in ownership, but it does put your home behind a business risk, which belongs in the decision.
Buy another property
Equity in your current home can become the down payment on a second home or a rental, which is how a good number of our clients start investing in property.
Build a cushion
A medical bill, a job change or a major repair is easier to face with reserves in the bank. Some homeowners take cash out simply to hold it, while they have the equity and qualify comfortably.
Equity you can see, turned into money you can use.
Most homeowners have gained equity in the last few years without doing anything but making payments. A cash-out refinance converts part of it into cash at closing, at a mortgage rate rather than a card or personal-loan rate.
The question is how much to take and what the new payment looks like. Your pro models both before you commit to anything.
How much could you take out?
Enter what your home is worth and what you still owe, then pick the loan type you expect to use. The result is the cash you could receive at closing after costs, and what the new payment would look like.
Cash-out by loan type.
How much you can take depends on the program you qualify for. Your pro will price all of the ones you are eligible for.
Most common
Conventional cash-out
Borrow up to 80 percent of your home value with a credit score from about 620. No mortgage insurance at that level, and no upfront government fee. This is the default route for most homeowners with solid credit.
Lower credit scores
FHA cash-out
Also capped at 80 percent of value, but with credit requirements that start lower, often around 580. FHA mortgage insurance applies for 11 years or the life of the loan depending on the loan-to-value, which your pro will factor into the comparison.
Veterans and service members
VA cash-out
VA rules permit cash-out up to 100 percent of the home’s value for eligible borrowers, though most lenders cap it at 90 percent, with no monthly mortgage insurance. A one-time VA funding fee applies unless you are exempt, and it can be rolled into the loan.
Equity, put to work
Renovations, debt payoff, tuition or a rental down payment: cash-out funds arrive at closing, in one sum.
Is taking cash out the right move?
This is your home securing the loan, so the honest answer matters more than the sale. Here is how we look at it.
A good fit if you want to
- You are putting the money back into the property through a renovation that adds value
- You are replacing higher-interest debt and the total interest you pay goes down
- You have a clear use for the money and a plan for the new payment
- You have comfortable equity to spare and will still keep a healthy cushion
- You are a veteran who can access more of your equity without mortgage insurance
- The new rate is close to your current one, so the extra cost of borrowing is small
Probably not the right move if
- Your current mortgage rate is far below what is available today and the trade would be expensive
- The cash would cover everyday expenses rather than something that lasts
- You would be consolidating debt without changing the spending that created it
- You plan to sell soon, leaving little time to recover the closing costs
- The new payment would stretch your budget if your income changed
What lenders look for.
General guidelines for cash-out programs. Lenders set their own overlays, and your pro will confirm which apply to you.
| Requirement | Conventional | FHA | VA |
|---|---|---|---|
| Maximum loan-to-value | 80 percent of appraised value on a primary residence; lower on second homes and rentals | 80 percent of appraised value, owner-occupied only | Up to 100 percent under VA rules; most lenders cap at 90 |
| Minimum credit score | Usually 620; best pricing from about 740 | Often 580 | No VA minimum; lenders commonly want 580 to 620 |
| Debt-to-income ratio | Typically up to 43 to 50 percent | Often up to 50 percent with compensating factors | Guided by residual income as well as ratio |
| Ownership seasoning | Generally 6 to 12 months | Twelve months of on-time payments in most cases | Six months and six payments in most cases |
| Appraisal | Required | Required | Required |
| Mortgage insurance | None at 80 percent or below | FHA MIP applies for 11 years or the life of the loan, by loan-to-value | None; one-time funding fee unless exempt |
| Occupancy | Primary, second home or investment, with different limits | Primary residence only | Primary residence only |
Guidelines change and vary by lender. This table is a starting point, not a commitment to lend.
The U.S. mortgage market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Cash-out loans usually price slightly above a straight refinance because the loan is larger relative to the home. Your pro will show you your real number.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How a cash-out refinance works with us.
Four steps, one pro, and you always know what happens next.
1
Tell us the plan
What the money is for and roughly what your home is worth. We give you an honest read on how much equity you can reach and whether a cash-out is the lowest-cost way to get it. No hard credit pull yet.
2
See real numbers
Your pro shops the lenders we work with and comes back with the cash available, the new payment and every cost, explained line by line so you can compare against anyone else.
3
Apply and appraise
Nearly every cash-out loan needs an appraisal, which sets the value the whole deal rests on; in some eligible cases the lender or investor accepts an alternative valuation instead. We order the valuation early and collect your income, asset and property documents once, not three times.
4
Close and get your funds
You sign, and because the loan is secured by your principal residence and advances new money, federal law gives you three business days to cancel before anything funds; a cash-out on a second home or rental funds without that wait. After that the old loan is paid off and the cash is wired to you.
See how much equity you could put to work.
A licensed pro estimates your home’s value, your available cash and your new payment, then walks you through it.
Cash-out questions, answered.
The questions homeowners ask us most before they borrow against their equity. If yours is not here, a licensed pro will answer it directly, with no obligation.
How much cash can I actually get?
Take your home value, multiply by the maximum loan-to-value for your program (generally 80 percent on a primary residence for conventional and FHA; up to 100 percent under VA rules, though most lenders cap at 90), then subtract what you still owe and the closing costs. On a $450,000 home with a $285,000 balance and a conventional loan, that is roughly $75,000 before costs. The calculator above does this for your numbers.
How much equity do I need to keep?
Conventional and FHA cash-out loans generally require you to keep at least 20 percent of your home value as equity. VA rules allow eligible borrowers to go up to 100 percent of value, though most lenders cap it at 90 percent. Keeping a cushion also protects you if values soften.
Is the money taxable?
No. Borrowed money is not income, so a cash-out refinance is not a taxable event. Whether the interest is deductible is a separate question that generally depends on using the funds to buy, build or substantially improve the home. Talk to your tax advisor about your situation.
How is this different from a home equity line of credit?
A cash-out refinance replaces your mortgage, so you end up with one loan and one payment, usually at a fixed rate. A home equity line is a second loan behind your first, typically at a variable rate, that you draw on as needed. If your current rate is very low, keeping it and adding a second loan can work out cheaper, which we will tell you plainly.
Will my monthly payment go up?
Usually yes, because you are borrowing more. How much depends on the new rate and term. If the cash clears debts with much higher payments, your total monthly outgoings can still fall even though the mortgage payment rises. We show you both numbers side by side.
What does it cost?
Closing costs generally run 2 to 5 percent of the new loan amount and cover lender fees, the appraisal, title work and recording. They can usually be paid out of the cash you are taking, so nothing comes out of pocket. VA borrowers also pay a one-time funding fee unless they are exempt.
Do I need an appraisal?
Usually. Cash-out loans are sized against the current value of your home, so most require a full appraisal, though in some eligible cases the lender or investor accepts an alternative valuation. A full appraisal typically takes one to two weeks and costs a few hundred dollars. If the value comes in lower than expected, we rework the numbers with you before you commit.
How long do I have to own the home first?
Conventional cash-out generally requires 6 to 12 months of ownership. FHA usually wants twelve months of on-time payments, and VA typically six months and six payments. Inherited property and a few other situations have their own rules, which your pro will check.
Can I take cash out of a rental property?
Yes, on conventional financing. Investment properties have lower maximum loan-to-value limits, usually around 70 to 75 percent, and price higher than a primary residence. FHA and VA cash-out programs are for primary residences only.
What credit score do I need?
Conventional cash-out generally starts at 620, with the best pricing from about 740. FHA options often start near 580. VA sets no minimum, though most lenders look for 580 to 620. Because cash-out loans are larger relative to the home, pricing is more sensitive to score than a standard refinance.
Cash out in any of the 39 states we serve.
MortgagePros is licensed in each state below; license types vary by state and are listed on our Licensing page. Wherever your home is, the same pro is your point of contact from quote to closing.
AL · AR · AZ · CA · CO · CT · DE · FL · GA · IA · ID · IL · IN · KS · KY · LA · MA · MD · ME · MI · MN · MS · MT · NC · ND · NE · NJ · NM · OH · OK · OR · PA · SC · SD · TN · TX · VA · WA · WI
Get your cash-out quote.
Tell us what your home is worth and what you owe. A licensed pro will call with the cash available and the real cost, usually the same business day. Asking does not start a loan or require a hard credit pull.
Prefer to talk?
248-416-1361
Open 24/7. Ask for a refinance specialist.
What happens next
A short call about your plan for the money, then a written quote with the cash available, the new payment and every cost. No hard credit pull until you decide to move forward.
Licensed and reviewed
Licensed in 39 states. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.