Free Cash-Out Refinance Calculator

Compare your current mortgage payment to a new cash-out refinance to see if extracting equity makes financial sense.

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Net Cash Received

$50,000

New Monthly Payment$2,368.48
Current Monthly Payment$2,025.62
Monthly Payment Change$342.86
New Total Loan Amount$356,000
New LTV Ratio71.2%

Net Cash Received vs Remaining Years on Current Loan

Cash-Out Refinance Overview

A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan and your old balance is paid to you as cash.

How It Works

1. New Loan Amount = Current Balance + Cash-Out + Closing Costs 2. You receive the cash-out amount at closing 3. Your payment is recalculated on the new, larger balance

When It Makes Sense

  • Consolidating high-interest debt
  • Funding home improvements that increase value
  • Investing in additional property
  • When the new rate is similar to or lower than your current rate
  • Risks

  • Increases your total debt and LTV
  • Resets your amortization clock
  • Closing costs reduce the effective cash received
  • Example Calculation

    A $500,000 home with $300,000 balance at 6.5% (25 years remaining). Cash out $50,000 with a new 30-year loan at 7% with $6,000 closing costs.

    1. 01New loan amount: $300,000 + $50,000 + $6,000 = $356,000
    2. 02New LTV: $356,000 / $500,000 = 71.2%
    3. 03Current payment: $300,000 over 25 years at 6.5% = $2,028.28/month
    4. 04New payment: $356,000 over 30 years at 7% = $2,368.44/month
    5. 05Payment increase: $2,368.44 - $2,028.28 = $340.16/month
    6. 06You receive $50,000 cash at closing

    Frequently Asked Questions

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