refinance
Cash-Out Refinance
Turn the equity you've built into cash for debt consolidation, home improvements, or your next property, with one new loan and one payment.
Eligibility
- Requires sufficient equity in your home; most programs let you borrow up to a set share of its value
- Available on primary residences, second homes, and investment properties
- Qualification considers your credit, income, and the new loan's payment
Key benefits
- One loan and one payment instead of a separate loan on top of your mortgage
- Use the funds for debt consolidation, renovations, or buying another property
- Fixed-rate and adjustable-rate options
- We'll show you the math side by side against a HELOC before you commit
What is a cash-out refinance?
A cash-out refinance replaces your current mortgage with a new, larger loan and puts the difference in your pocket at closing. It's the most direct way to turn the equity you've built into money you can use, while keeping a single loan and a single payment. Whether it's the right way depends on your current rate and what the cash is for, and that's a conversation we'll have with real numbers before you commit to anything.
Who it's for
Homeowners who've built meaningful equity and have a clear use for it: paying off higher-cost debt, funding a renovation, or putting a down payment on the next property. It fits best when the new loan's rate and term still make sense for your budget on their own merits.
The four most common uses
Consolidating higher-cost debt
Credit cards and personal loans usually carry rates far above mortgage rates. Rolling those balances into your mortgage can cut your total monthly outlay significantly. The honest caveat: you're converting unsecured debt into debt secured by your home and paying it over a longer term, so this works best with a plan to not refill the cards. We'll show you the full cost both ways.
Home improvements
Funding a renovation from equity often beats financing it any other way, and the right projects add value back to the home. For bigger remodels, we'll also price a renovation-specific loan such as a HomeStyle loan so you can compare structures.
Buying another property
Equity in your current home can become the down payment on a second home or an investment property. We'll compare pulling cash from your current home against financing more of the new purchase, and structure whichever path the numbers favor.
A better overall loan
Sometimes the cash is only half the story: if your current rate or term no longer fits, a cash-out refinance can restructure the whole loan while it frees up funds.
We'll do the math with you first
A cash-out refinance touches your largest asset, so we treat it like it matters. Bring us your goal and your numbers, and we'll show you the new payment, the total cost, and how it compares to a HELOC or leaving things alone. When the math doesn't favor it, we'll say so.
Frequently asked
- How does a cash-out refinance work?
- You replace your current mortgage with a new, larger loan and receive the difference in cash at closing. The new loan has its own rate and term, so the decision depends on your current rate, how much equity you have, and what the cash will do for you. We'll run your numbers both ways before you commit to anything.
- Is a cash-out refinance a good way to consolidate debt?
- It can be, when the math works. Mortgage rates are typically well below credit card and personal loan rates, so folding higher-cost balances into your mortgage can lower your total monthly outlay. The tradeoff is that you're securing that debt with your home and paying it over a longer term, so it works best paired with a clear payoff plan. We'll tell you plainly if the numbers don't favor it.
- Can I use a cash-out refinance to pay for home improvements?
- Yes, and it's one of the most common uses. Funding renovations from equity at mortgage rates often beats financing them with cards or unsecured loans, and improvements that add value can build back some of the equity you're using. For major renovation projects, we'll also compare a renovation-specific loan so you can see which structure fits better.
- Can I use equity from my home to buy another property?
- Yes. A cash-out refinance on your current home can fund the down payment on a second home or investment property. Whether it beats other routes, like financing more of the new purchase itself, depends on the rates and equity involved, so we'll map both paths with real numbers.
- Should I do a cash-out refinance or a HELOC?
- It usually comes down to your current mortgage rate. If your existing rate is lower than today's rates, a HELOC lets you keep it and borrow separately. If your rate is at or above today's, a cash-out refinance may improve the whole picture at once. We'll show you both side by side.