{
  "id": "cash-out-refinance",
  "version": "8773804ec5d8",
  "status": "published",
  "name": "Cash Out Refinance Calculator",
  "question": "What will a cash-out refinance cost?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/cash-out-refinance-calculator",
  "markdown": "https://www.acalculator.org/finance/cash-out-refinance-calculator.md",
  "kind": "schedule",
  "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.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "value": {
        "title": "Home value",
        "description": "What your home is worth today, for example from an appraisal.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 1000000000
      },
      "balance": {
        "title": "Mortgage balance today",
        "description": "The principal you still owe on the current mortgage.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "rate": {
        "title": "Current interest rate",
        "description": "The fixed yearly rate on the current mortgage.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "left": {
        "title": "Months left to pay",
        "description": "The number of monthly payments left on the current mortgage.",
        "type": "integer",
        "minimum": 1,
        "maximum": 480
      },
      "cash": {
        "title": "Cash to take out",
        "description": "The cash you want from the new loan.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "newRate": {
        "title": "New interest rate",
        "description": "The fixed yearly rate on the new loan.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "newYears": {
        "title": "New loan term (years)",
        "description": "The length of the new loan, for example 30 or 15 years.",
        "type": "integer",
        "minimum": 1,
        "maximum": 40
      },
      "costs": {
        "title": "Closing costs",
        "description": "The fees and points to refinance.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000
      },
      "roll": {
        "title": "Pay the closing costs",
        "description": "Add the closing costs to the new loan, or pay them in cash.",
        "type": "string",
        "enum": [
          "loan",
          "cash"
        ]
      },
      "start": {
        "title": "New loan start date",
        "description": "The day the loan starts. The first payment is one month later.",
        "type": "string",
        "format": "date"
      },
      "limit": {
        "title": "Lender’s loan-to-value limit",
        "description": "The most the new loan may be, as a percent of the home value.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 1,
        "maximum": 100
      }
    }
  },
  "outputs": {
    "newPayment": {
      "label": "New monthly payment",
      "description": "The principal and interest payment on the new loan.",
      "format": "money"
    },
    "newLoan": {
      "label": "New loan amount",
      "description": "Today’s balance plus the cash, plus the closing costs when they are added to the loan.",
      "format": "money"
    },
    "ltv": {
      "label": "New loan-to-value",
      "description": "The new loan as a percent of the home value.",
      "format": "percent"
    },
    "most": {
      "label": "Most cash you can take out",
      "description": "The home value × the limit, minus today’s balance and any closing costs added to the loan.",
      "format": "money"
    },
    "oldPayment": {
      "label": "Current monthly payment",
      "description": "The payment that repays today’s balance over the months left at the current rate.",
      "format": "money"
    },
    "change": {
      "label": "Payment change",
      "description": "The new payment minus the current payment.",
      "format": "money"
    },
    "equity": {
      "label": "Equity left",
      "description": "The home value minus the new loan.",
      "format": "money"
    },
    "newInterest": {
      "label": "Interest on the new loan",
      "description": "All the interest the new loan charges.",
      "format": "money"
    },
    "oldInterest": {
      "label": "Interest left on the current loan",
      "description": "The interest the current loan charges from today until it is paid off.",
      "format": "money"
    },
    "payoff": {
      "label": "New loan paid off in",
      "description": "The month of the new loan’s last payment, when a start date is given.",
      "format": "month-year"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "value": 450000,
      "balance": 250000,
      "rate": 5,
      "left": 300,
      "cash": 60000,
      "newRate": 6.75,
      "newYears": 30,
      "costs": 9000,
      "roll": "loan",
      "start": "2026-09-30",
      "limit": 80
    },
    "outputs": {
      "newPayment": 2069.027928052606,
      "newLoan": 319000,
      "ltv": 70.88888888888889,
      "most": 101000,
      "oldPayment": 1461.4751037699475,
      "change": 607.5528242826585,
      "equity": 131000,
      "newInterest": 425850.05409893824,
      "oldInterest": 188442.53113098416,
      "payoff": "2056-09-30"
    },
    "text": "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."
  },
  "examples": [
    {
      "given": {
        "value": 450000,
        "balance": 250000,
        "rate": 5,
        "left": 300,
        "cash": 60000,
        "newRate": 6.75,
        "newYears": 30,
        "costs": 9000,
        "roll": "loan",
        "limit": 80
      },
      "expect": {
        "newLoan": 319000,
        "ltv": 70.88888888888889,
        "most": 101000,
        "newPayment": 2069.027928052608,
        "oldPayment": 1461.4751037699505,
        "change": 607.5528242826574,
        "equity": 131000
      },
      "source": "hand calculation in content.mdx, checked in Python 3 (docs/progress/WP-48/python/cash_out.py)"
    },
    {
      "given": {
        "value": 400000,
        "balance": 200000,
        "rate": 4,
        "left": 240,
        "cash": 120000,
        "newRate": 7,
        "newYears": 30,
        "costs": 8000,
        "roll": "cash",
        "limit": 80
      },
      "expect": {
        "newLoan": 320000,
        "ltv": 80,
        "most": 120000,
        "newPayment": 2128.9679845733835,
        "change": 917.0073259745645
      },
      "source": "Fannie Mae Eligibility Matrix: an 80% maximum loan-to-value for a cash-out refinance of a one-unit principal residence; hand calculation in content.mdx, checked in Python 3 (docs/progress/WP-48/python/cash_out.py)"
    },
    {
      "given": {
        "value": 300000,
        "balance": 90000,
        "rate": 0,
        "left": 180,
        "cash": 30000,
        "newRate": 0,
        "newYears": 20,
        "costs": 0,
        "roll": "loan",
        "limit": 80
      },
      "expect": {
        "newLoan": 120000,
        "newPayment": 500,
        "oldPayment": 500,
        "change": 0,
        "newInterest": 0,
        "most": 150000
      },
      "source": "hand calculation in content.mdx: at 0%, 120,000 ÷ 240 and 90,000 ÷ 180"
    }
  ],
  "sources": [
    "Fannie Mae, Eligibility Matrix (cash-out refinance of a one-unit principal residence: maximum LTV/CLTV 80%). https://singlefamily.fanniemae.com/media/document/pdf/eligibility-matrix-december-10-2025",
    "Freddie Mac, Planning to refinance (the break-even rule does not work for cash-out refinances). https://myhome.freddiemac.com/refinancing/planning-to-refinance",
    "Freddie Mac, Understanding the costs of refinancing (about 3% to 6% of the loan principal). https://myhome.freddiemac.com/refinancing/costs-of-refinancing",
    "Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3."
  ],
  "related": [
    "refinance",
    "heloc",
    "home-equity-loan",
    "home-equity"
  ],
  "changelog": []
}