A cash-out refinance replaces your current mortgage with a new, larger loan, and you receive the difference in cash at closing. It's a way to put your home's equity to work for renovations, debt consolidation, education costs, or other major expenses, using a single loan rather than a separate line of credit.
Generally a good fit if you...
- Have built up meaningful equity in your home
- Want a lump sum of cash rather than a revolving line like a HELOC
- Can accept a new loan balance (and possibly a new rate) in exchange for that cash
General guidelines
- Loan-to-value: most lenders cap cash-out refinances around 80–85% of your home's value
- Rate: often slightly higher than a standard rate-and-term refinance
- Use of funds: no restrictions on what the cash is used for
Have equity you'd like to turn into cash?
Every situation is different, and these are general guidelines — the fastest way to know where you stand is a quick conversation. Send us a message or visit our team page to apply directly.