Cash-Out Refinance
A cash-out refinance replaces your current mortgage with a new, larger loan, and you receive the difference in cash at closing.
Homeowners use cash-out refinances to pay off higher-interest debt, remodel, cover education costs, or invest. Because the loan is secured by your home, rates are often lower than credit cards or personal loans. Think it through carefully, though: you’re turning unsecured debt into debt secured by your home.
Who it’s for
How it works
The amount you can take out depends on your home’s value, your loan program and how much equity has to stay in the home. You get a new rate and term on the whole balance, so we’ll compare it with a HELOC, which leaves your current first mortgage in place.
Typical maximum loan-to-value for a cash-out refinance (primary residence)
| Conventional | Up to 95% of the home’s value |
| FHA | Up to 80% of the home’s value |
| VA | Up to 100% of the home’s value under VA rules (lender limits may be lower) |
| Investment property / DSCR | Up to 85% of the home’s value |
What you need to qualify
- Enough equity after the new loan amount
- Credit and income that support the new payment (DSCR options are available for rentals)
- Time owned and time since your last refinance (seasoning) requirements
- An appraisal in most cases. Some conventional cash-out loans qualify for a waiver.
Documents to have ready
- Your current mortgage statement
- Pay stubs, W-2s and/or tax returns
- Homeowners insurance information
- A list of debts you plan to pay off, if consolidating
How it works with Amerifi Lending
Frequently asked questions
How much cash can I get?
Roughly: the maximum loan amount for your program (for example, 80% of value) minus your current balance and closing costs. We can estimate it in a short call.
Is a cash-out refinance or a HELOC better?
If your current rate is low, a HELOC may be smarter because it leaves that rate alone. If your rate is higher than today’s, a cash-out refinance can improve the rate and give you cash at the same time.
Can I do a cash-out refinance without an appraisal?
Sometimes, on a conventional loan with strong equity. See our guide to refinancing without an appraisal.
Helpful guides
Related loan options
Ready to see what you qualify for?
Have questions? Call or text us, or start your application online. There is no cost to find out what you qualify for.
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