Unlock Your Home's Potential with a Cash Out Refinance Loan

Convert your home equity into cash for high-value uses like debt consolidation, renovations, or major investments.

What is a Cash-Out Refinance?

A **Cash-Out Refinance** replaces your current mortgage with a new, larger loan. The difference between the new loan amount and your existing balance (plus closing costs) is given to you as a lump sum of **tax-free cash** at closing. This creates a new, first lien, allowing you to access a substantial portion of your home's built-up equity.

Unlike a Home Equity Line of Credit (HELOC), a Cash-Out Refinance provides a single, **fixed-rate loan** covering your entire principal, giving you predictable monthly payments and long-term budget stability.

Top 3 Strategic Uses for Your Cash-Out Funds

High-Interest Debt Consolidation

Major Home Improvements

Strategic Investment or Tuition

Pay off credit cards, personal loans, or auto loans. Replacing 20%+ debt with a lower, tax-deductible mortgage rate often results in the largest monthly savings.

Fund substantial renovations (kitchens, additions, pools) that increase your home's market value, effectively leveraging debt to create wealth.

Use low-cost funds for college tuition, medical bills, or a down payment on a second investment property. Control the capital, control your future.

**Joseph Schibelli (NMLS #1214394)**, our Senior Loan Specialist, says: "The smartest Cash-Out clients focus on consolidating high-interest consumer debt. It’s not just about getting cash; it's about optimizing your overall debt portfolio to save thousands per year."

Key Qualification Rules: The 80% LTV Limit

How Much Cash Can I Take Out?

Most conventional Cash-Out Refinances are limited by the **80% Loan-to-Value (LTV)** rule. LTV is calculated by dividing your new loan amount by your home's appraised value.

FHA & VA Cash-Out Details

**FHA Cash-Out:** Allows up to **80% LTV**. Requires an updated appraisal and meets standard FHA credit/income rules.
**VA Cash-Out:** The most aggressive option, often allowing up to **100% LTV** for eligible veterans (subject to specific lender and program overlays).
**Credit Score:** While often higher than Rate & Term, generally a 620+ FICO is required for conventional financing.
**Credit Score:** While often higher than Rate & Term, generally a 620+ FICO is required for conventional financing.

**Example:** If your home is appraised at **$400,000**, the maximum new loan amount is **$320,000** ($400,000 x 80%). We use the difference between the $320,000 and your current mortgage balance to determine your cash-out potential.

"LTV rules are non-negotiable, but where our team shines is maximizing the cash amount you qualify for within those rules. We look at FHA, VA, and Conventional options to see which delivers the biggest check." — Kenneth Mickens (NMLS #2415397)

Connect with a Cash-Out Refinance Specialist