What will a cash-out refinance cost?
See how much cash you can take out of your home with a new mortgage, what the new loan costs a month, and how much equity you keep.
- New monthly payment
- $2,069.03
Taking $60,000.00 out of a $450,000.00 home makes a $319,000.00 loan at 6.75% that costs $2,069.03 a month.
- New loan amount
- $319,000.00
- New loan-to-value
- 70.9%
- Most cash you can take out
- $101,000.00
- Current monthly payment
- $1,461.48
- Payment change
- $607.55
- Equity left
- $131,000.00
- Interest on the new loan
- $425,850.05
- Interest left on the current loan
- $188,442.53
- New loan paid off in
- September 2056
- Months
- 360
Answer for the example date Wednesday, September 30, 2026. It changes to today's date when the page loads.
New monthly payment: $2,069.03. Taking $60,000.00 out of a $450,000.00 home makes a $319,000.00 loan at 6.75% that costs $2,069.03 a month.
How much of the home do you still own after the cash-out?
How do the two balances fall?
What does every new payment look like?
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes the new loan, payment, and loan-to-value of a cash-out refinance, the most cash the lender’s limit allows, and how the payment and interest compare with the current mortgage.
Example with the default inputs (Home value $450,000.00, Mortgage balance today $250,000.00, Current interest rate 5%, Months left to pay 300, Cash to take out $60,000.00, New interest rate 6.75%, New loan term (years) 30, Closing costs $9,000.00, Pay the closing costs Add to the loan, New loan start date September 30, 2026, Lender’s loan-to-value limit 80%) on the example date Wednesday, September 30, 2026: Taking $60,000.00 out of a $450,000.00 home makes a $319,000.00 loan at 6.75% that costs $2,069.03 a month.
Method: new loan = balance + cash (+ closing costs if added); loan-to-value = new loan ÷ home value; payment = L × r ÷ (1 − (1 + r)^−n), with r the rate ÷ 12 and n the months.
- Both loans have fixed rates, and interest is charged monthly at the yearly rate ÷ 12.
- The current payment is the one that repays today’s balance over the months left.
- The lender’s limit applies to the new loan alone; no other loans are secured by the home.
- Tax, insurance, mortgage insurance, and any prepayment penalty are not included; nothing is rounded between months.
Worked examples
Each example is checked against the calculator on every build.
- Home value $450,000.00, Mortgage balance today $250,000.00, Current interest rate 5%, Months left to pay 300, Cash to take out $60,000.00, New interest rate 6.75%, New loan term (years) 30, Closing costs $9,000.00, Pay the closing costs Add to the loan, Lender’s loan-to-value limit 80% gives New loan amount $319,000.00, New loan-to-value 70.888889%, Most cash you can take out $101,000.00, New monthly payment $2,069.03, Current monthly payment $1,461.48, Payment change $607.55, Equity left $131,000.00.
- Home value $400,000.00, Mortgage balance today $200,000.00, Current interest rate 4%, Months left to pay 240, Cash to take out $120,000.00, New interest rate 7%, New loan term (years) 30, Closing costs $8,000.00, Pay the closing costs In cash, Lender’s loan-to-value limit 80% gives New loan amount $320,000.00, New loan-to-value 80%, Most cash you can take out $120,000.00, New monthly payment $2,128.97, Payment change $917.01.Source: Fannie Mae Eligibility Matrix: an 80% maximum loan-to-value for a cash-out refinance of a one-unit principal residence
- Home value $300,000.00, Mortgage balance today $90,000.00, Current interest rate 0%, Months left to pay 180, Cash to take out $30,000.00, New interest rate 0%, New loan term (years) 20, Closing costs $0.00, Pay the closing costs Add to the loan, Lender’s loan-to-value limit 80% gives New loan amount $120,000.00, New monthly payment $500.00, Current monthly payment $500.00, Payment change $0.00, Interest on the new loan $0.00, Most cash you can take out $150,000.00.
How it works
Write V for the home value, B for today's balance, r₀ for the current yearly rate ÷ 1200, k for the months left, X for the cash to take out, r₁ for the new yearly rate ÷ 1200, n for the new term in months (years × 12), C for the closing costs, and c for the lender's loan-to-value limit in percent.
- New loan. L = B + X + C when the costs are added to the loan, and L = B + X when they are paid in cash. If L is 0 there is no loan and no answer.
- Loan-to-value = L ÷ V × 100. If it is more than c, the lender's limit, there is no answer.
- Most cash = V × c ÷ 100 − B − (C when added to the loan, else 0).
- Payments. Each loan's level payment is amount × rate ÷ (1 − (1 + rate)^−months), or amount ÷ months at 0%. The new payment is P₁ on L at r₁ over n months. The current payment is P₀ on B at r₀ over k months: the payment that repays today's balance over the months left. The payment change is P₁ − P₀.
- Equity left = V − L.
- Interest. Each loan runs month by month: interest = balance × monthly rate, principal = payment − interest, and the last payment clears the balance. The new loan's interest is the sum over its n payments (n × P₁ − L); the interest left on the current loan is the sum over its k payments (k × P₀ − B).
- New loan paid off in (with a start date): the month of the new loan's last payment, n months after the start date (payment k is dated k months after it).
Assumptions
- Both loans have fixed rates, and interest is charged monthly at the yearly rate ÷ 12.
- Your current payment is the one that repays today's balance over the months left (principal and interest only).
- No other loans are secured by the home, so the limit applies to the new loan alone.
- Tax, insurance, mortgage insurance, and any prepayment penalty are not included, and nothing is rounded between months.
- The default rates, costs, and limit are examples, not current market terms.
Worked examples by hand
A $450,000 home with $250,000 owed at 5% and 300 months left, taking $60,000 out at 6.75% over 30 years, with $9,000 of costs added to the loan. L = 250,000 + 60,000 + 9,000 = $319,000, and the loan-to-value is 319,000 ÷ 450,000 = 70.9%, within the 80% limit. The most cash is 450,000 × 0.80 − 250,000 − 9,000 = $101,000. With r₁ = 0.0675 ÷ 12 = 0.005625 and (1 + r₁)^−360 = 0.132745, P₁ = 319,000 × 0.005625 ÷ 0.867255 = $2,069.03. With r₀ = 0.05 ÷ 12 and (1 + r₀)^−300 = 0.287250, P₀ = 250,000 × 0.00416667 ÷ 0.712750 = $1,461.48. The payment rises by $607.55, and the equity left is 450,000 − 319,000 = $131,000.
A $400,000 home with $200,000 owed at 4% and 240 months left, taking $120,000 out at 7% over 30 years, with $8,000 of costs paid in cash. L = 200,000 + 120,000 = $320,000, exactly the 80% limit, and the most cash is 400,000 × 0.80 − 200,000 = $120,000. With r₁ = 0.07 ÷ 12 and (1 + r₁)^−360 = 0.123206, P₁ = 320,000 × 0.00583333 ÷ 0.876794 = $2,128.97. The current payment is $1,211.96, so the payment rises by $917.01.
A $300,000 home with $90,000 owed at 0% and 180 months left, taking $30,000 out at 0% over 20 years, with no costs. L = $120,000, P₁ = 120,000 ÷ 240 = $500, and P₀ = 90,000 ÷ 180 = $500, so the payment does not change ($0) and the new loan charges $0 of interest. The most cash is 300,000 × 0.80 − 90,000 = $150,000.
Other questions people ask
How does a cash-out refinance work?
You replace your mortgage with a bigger one. The new loan pays off today's balance, and you get the difference in cash. With $250,000 owed and $60,000 taken out, plus $9,000 of costs added to the loan, the new loan is $319,000.
How much cash can I take out?
Lenders cap the new loan at a percent of the home value. Fannie Mae's limit for a cash-out refinance of a one-unit home you live in is 80%. The most cash is the home value times the limit, minus today's balance and any costs added to the loan: 450,000 × 0.80 − 250,000 − 9,000 = $101,000.
Why does my payment go up so much?
You borrow more, and often at a higher rate than your old loan, and the term may restart at 30 years. In the example, the payment rises from $1,461.48 to $2,069.03, $607.55 more a month.
Is a cash-out refinance better than a HELOC or home equity loan?
A cash-out refinance replaces your whole mortgage, so if today's rates are higher than your current rate, you pay the higher rate on all of it. A HELOC or home equity loan keeps your first mortgage and borrows only the extra amount, usually at a higher rate on a smaller sum. Compare the total cost of each.
What are the closing costs on a cash-out refinance?
Similar to any refinance: Freddie Mac puts them at about 3% to 6% of the loan principal. They are often added to the loan, which lowers the most cash you can take out.
Does the break-even rule work for a cash-out refinance?
No. Freddie Mac notes that dividing the costs by the monthly saving does not work for a cash-out refinance, because the new loan is bigger. Compare the payment change and the new loan's interest instead.