Home Refinance
Cash-Out Refinance
Your home has been building value. A cash out refinance lets you put that equity to work — without giving up your home.
Smart Financing. Personal Service.
How It Works
How a Cash Out Refinance Works
A cash out refinance lets you tap into the equity you have built in your home while refinancing your existing mortgage into a new loan. The process is similar to your original home purchase loan.
1
Your Equity Determines How Much You Can Access
The amount available depends on your home value, current loan balance, and loan program. Most conventional cash out loans allow you to borrow up to 80% of your home value.
2
Full Underwriting Is Required
A cash out refinance goes through complete underwriting including income verification, credit review, and a new appraisal to confirm your home value.
3
No Restrictions on How You Use the Funds
Once the loan closes, the cash is yours to use however you choose. Common uses include home improvements, debt consolidation, and major expenses.
4
Your Loan Balance Will Increase
Because you are borrowing more than you currently owe, your new loan balance and monthly payment will generally be higher than before.
Basic Eligibility Requirements
Equity: Sufficient based on loan program requirements
Credit Score: Meets program minimums
Employment: Stable 2 year history
Debt to Income: Within program guidelines
Appraisal: Required to confirm current home value
Loan Amount: Within conforming or program limits
Property Type: Primary residence, second home, or eligible investment property
Location: Texas, Florida, Minnesota, or Colorado
Pros and Cons
Is a Cash-Out Refinance Right for You?
Accessing your equity can be a smart financial decision — but it comes with tradeoffs. Here is what to consider before moving forward.
The Advantages
- Access to a large lump sum of cash without selling your home.
- Often carries a lower rate than personal loans or credit cards.
- Can be used to consolidate higher interest debt into one payment.
- Funds can be used for any purpose with no restrictions.
- May allow you to improve your rate or term at the same time.
- One loan replaces your existing mortgage, keeping your finances consolidated.
The Tradeoffs
- Your loan balance increases, which means more interest paid over time.
- Your monthly payment will likely be higher than your current payment.
- Requires a full appraisal and complete underwriting, similar to a purchase loan.
- If home values decline, you could owe more than your home is worth.
- Using equity for non essential spending can put your home at risk if finances change.
- Closing costs apply and can be significant depending on your loan amount.
Who It's Best For
Cash-Out Refinance Works Best For...
This program works well for homeowners who have built meaningful equity and have a clear purpose for the funds.
Home Improvement Projects
Homeowners who want to use their equity to fund renovations that add value and improve their quality of life.
Debt Consolidation
Borrowers carrying high interest credit card or personal loan debt who want to consolidate into a single lower rate payment.
Major Life Expenses
Homeowners who need access to funds for education, medical expenses, or other significant financial goals.
Common Questions
Frequently Asked Questions
Straight answers to the questions we hear most often.
What is a cash out refinance?
It is a refinance where you borrow more than what you currently owe on your mortgage and receive the difference as cash. The new loan replaces your existing one.
How much cash can I take out?
The amount depends on your home value, current loan balance, and loan type. Most conventional loans allow you to borrow up to 80% of your home value. FHA and VA programs have their own limits.
What can I use the cash for?
There are no restrictions on how you use the funds. Common uses include home improvements, debt consolidation, education costs, and large expenses.
Will my monthly payment go up?
It depends on your new loan amount, rate, and term. In some cases borrowers lower their rate while still accessing equity, but your payment will generally reflect the larger loan balance.
Is a cash out refinance the same as a home equity loan?
No. A home equity loan is a second loan added on top of your existing mortgage. A cash out refinance replaces your mortgage entirely with one new loan.
Keep exploring
Compare a cash-out refinance with your other options
Rate and Term Refinance
Change your rate or term without taking cash out. May let you drop mortgage insurance once equity has grown.
Streamline Refinance
For an existing FHA loan at least 210 days old. Less documentation, and often no new appraisal.
Not Sure Where to Start?
Let's Figure It Out Together.
Whether you're ready to apply or just exploring your options, we're here to help. No pressure, no obligation, just honest guidance.