Will I owe PMI on a cash-out?

If LTV exceeds program thresholds, PMI may apply. This model doesn’t include PMI—add it separately if relevant.

What if my appraisal comes in low?

Max LTV uses appraised value; a lower appraisal reduces cash-out. Re-run with a conservative value.

Are closing costs financed?

This assumes closing costs come from proceeds. If you pay them upfront, cash-out increases by that amount.

Does this include taxes/insurance?

No. P&I only. Add escrows to see full payment impact.

How does this compare to a HELOC?

HELOCs can have lower upfront costs and variable rates. Use this for fixed-rate cash-out; compare against HELOC terms separately.

finance calculator

Cash-Out Refinance Calculator

See how much cash you can pull from your home, your new payment, and interest tradeoffs when refinancing with a cash-out.

Results

Max loan allowed (LTV): $400,000
Estimated cash-out (after costs): $75,500
New loan amount: $400,000
New monthly payment (P&I): $2,463
Payment change vs current: $387
Current payment (P&I): $2,076
Interest remaining (current path): $352,467
Interest over new term: $486,633

How to use this calculator

Enter your home value, current balance, current rate/term, and months elapsed.
Enter max LTV, new rate/term, and closing costs.
Review max loan, cash available, new payment, and payment change.
Compare current remaining interest vs new loan interest to judge the tradeoff.

Inputs explained

Max LTV: Typical limit is 80% for conventional cash-out; adjust if your program differs.
Closing costs: Include lender fees, title, recording. Reduces available cash if paid from proceeds.
Months elapsed: Used to estimate remaining interest on your current loan.

How it works

Max new loan = home value × max LTV. Cash-out = max loan − current balance − closing costs (floor at 0).

New payment uses the new loan amount, new rate, and new term. Payment change = new minus current payment.

We also show remaining interest on the current path vs total interest on the new loan for a simple comparison.

Formula

Max loan = Home value × Max LTV
Cash-out = Max loan − Current balance − Closing costs
Payment = P × r(1+r)^n / [(1+r)^n − 1] with r = new APR/12, n = new term months

When to use it

Checking how much cash you could pull for renovations or debt payoff.
Comparing payment increase/decrease when resetting the term.
Seeing if the cash-out makes sense versus a HELOC or personal loan.

Tips & cautions

Conservative value estimates avoid overestimating cash-out; appraisals control the final number.
If rates are higher than your current loan, payment may rise—ensure cash need justifies the cost.
Compare to a HELOC when you need flexibility or lower upfront costs.
Include points or credits in closing costs to see true proceeds.
Simplified interest comparison; does not model amortization crossover or time value of money.
Does not include PMI, escrows, or points beyond the closing cost input.
Cash-out availability depends on appraisal, program limits, and underwriting.

Worked examples

$500k value, $320k balance, 80% LTV, 6.25%/30yr, $4,500 costs

Max loan = $400k; cash-out ≈ $75,500
New P&I ≈ $2,463; current P&I ≈ $2,076
Payment change ≈ +$387; new interest over term ≈ $486,633

$650k value, $410k balance, 80% LTV, 5.75%/30yr, $5,500 costs

Max loan = $520k; cash-out ≈ $104,500
New P&I ≈ $3,035; current P&I ≈ $2,700
Payment change ≈ +$334; new interest over term ≈ $572,448

Deep dive

This cash-out refinance calculator shows how much cash you can take from your home at a given LTV, plus your new payment and interest comparison vs your current loan.

Use it to decide if a cash-out refi makes sense or if a HELOC/personal loan is better for your needs.

FAQs

Will I owe PMI on a cash-out?: If LTV exceeds program thresholds, PMI may apply. This model doesn’t include PMI—add it separately if relevant.
What if my appraisal comes in low?: Max LTV uses appraised value; a lower appraisal reduces cash-out. Re-run with a conservative value.
Are closing costs financed?: This assumes closing costs come from proceeds. If you pay them upfront, cash-out increases by that amount.
Does this include taxes/insurance?: No. P&I only. Add escrows to see full payment impact.
How does this compare to a HELOC?: HELOCs can have lower upfront costs and variable rates. Use this for fixed-rate cash-out; compare against HELOC terms separately.

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Estimates only. Cash-out limits, PMI, closing costs, and underwriting vary by lender/investor. Confirm with your lender before relying on these figures.