A cash-out refinance re-prices your entire mortgage, not just the money you take. When your current rate is below today's, that can mean paying several dollars in extra interest for every dollar of equity extracted. This calculator shows that number outright.
Files are branded with Abodemic and your results — no data leaves your browser.
Conventional cash-out refinances generally cap at 80% loan-to-value on a primary residence. Multiply your home's value by 0.80, then subtract your current balance and closing costs — what remains is the cash available.
It depends almost entirely on the rate gap. If today's rate is near or below your current one, it's efficient. If your existing rate is well below market, refinancing re-prices the whole balance and the cash can end up costing more than a dollar per dollar borrowed.
A cash-out refinance replaces your entire first mortgage at a new rate. A HELOC adds a second lien and leaves the first mortgage untouched. If your first mortgage carries a low rate, the HELOC almost always wins on total cost.
Closing costs typically run 2%–5% of the new loan amount, usually rolled into the balance. Beyond that, the real cost is the extra lifetime interest — which this calculator expresses as a cost per dollar of cash received.
No. Loan proceeds are borrowed money, not income, so they are not taxable. Interest deductibility is a separate question and generally depends on whether the funds are used to substantially improve the home.
Sources: Fannie Mae Selling Guide — cash-out refinance LTV limits; CFPB — refinancing your mortgage; Standard amortization (annuity) formula.
Estimates for educational purposes only — not a loan offer, financial advice, or a commitment to lend. Actual rates, payments, and terms vary by lender and creditworthiness.