Cash Out Refinance Mortgage Calculator

A Cash‑Out Refinance Mortgage Calculator helps homeowners estimate new monthly payments, total interest, and available cash after refinancing their mortgage for a larger amount than they owe. This tool is invaluable for assessing whether tapping into home equity—while adjusting terms and rates—is financially beneficial.

Cash-Out Refinance Mortgage Calculator

  1. Home’s current estimated value
  2. Existing mortgage balance
  3. Desired cash-out amount
  4. New interest rate (APR)
  5. New loan term (years or months)
  6. (Optional) Closing costs and fees, and whether they’re rolled into the loan.

Once submitted, the calculator outputs:

  • New loan balance
  • Available cash after payoff and costs
  • Estimated monthly mortgage payment
  • Total interest paid over loan term
  • Comparison to existing payment and balance

Some calculators (e.g. NerdWallet, AmeriSave, Zillow, LendingTree) allow side-by-side comparison of original vs. refinanced scenarios and even include property taxes, insurance, or HOA fees.WOWA+10NerdWallet+10Amerisave+10InvestopediaInvestopedia+3nesto.ca+3MarketWatch+3LendingTree+1nesto.ca+1InvestopediaZillow+1Investopedia+1Bank of America+1NerdWallet+1

🧮 How the Calculator Works: Loan Math Explained

The tool uses the standard amortized loan formula to estimate monthly payments:

iniCopyEditA = P × [i × (1 + i)^n] ÷ [(1 + i)^n – 1]
  • A: monthly payment
  • P: new loan principal (existing balance + cash-out + rolled-in costs)
  • i: monthly rate = APR ÷ 12
  • n: total payments = loan term × 12

This allows comparison with your current loan to see how terms shift with different rates, cash-outs, or timeframes.Calculator.netInvestopediaBankrate

📘 Real‑World Example

Current loan:

  • Home value: $400,000
  • Original mortgage: $200,000 (owes)
  • Equity: $200,000

Refinance scenario:

  • Loan-to-value limit: 80% (max refinance = $320,000)
  • Desired cash-out: $40,000
  • Closing costs: 3% ($9,600) rolled into loan
  • New loan amount: $200,000 + 40,000 + 9,600 = $249,600
  • New rate: 6.5%
  • Term: 30 years

Results:

Compare this to your old payment and evaluate break-even time and net savings.Navy Federal Credit UnionKiplinger

🎯 Cash‑Out Refinance Calculator Benefits

✅ Considerations Before Cash‑Out Refinancing

  • Interest rate premium: Cash‑out often carries ~0.25%‑0.5% higher rates than rate‑and‑term refinancing due to increased lender risk.Wikipedia+1Kiplinger+1
  • LTV limits: Most lenders cap at ~80% LTV (varies with loan type—VA, FHA may differ).NerdWalletWOWA
  • Closing costs: Typically 2–6% of loan value; include in break-even calculation.NerdWallet
  • Qualification criteria: Require minimum credit score (~620+), DTI below ~43%, and seasoning requirements.Bankrate+1NerdWallet+1
  • Equity risk: Borrowing more reduces equity cushion and increases foreclosure risk if unable to pay.
  • Break-even horizon: If you don’t stay long enough to recoup fees through savings, refinance may not be worth it.

🙋 20 Frequently Asked Questions

  1. What is a cash‑out refinance?
    Replaces your current mortgage with a larger one; the difference is released as cash.MarketWatch+1NerdWallet+1Navy Federal Credit UnionAmerisave+6Bankrate+6NerdWallet+6Loans Canada+8Investopedia+8nesto.ca+8
  2. How much can I cash out?
    Typically up to 80% of property value minus existing mortgage balance.WOWANerdWallet+1nesto.ca+1
  3. Do I need 20% equity?
    Yes—most lenders require at least 20% equity to qualify.MarketWatch+5NerdWallet+5Investopedia+5
  4. Why are rates higher than standard refinance?
    Increased loan amount and risk means lenders charge a small premium.Navy Federal Credit Union+3Investopedia+3NerdWallet+3
  5. Can I roll closing costs into the loan?
    Yes—many calculators let you model that, but this increases your loan balance.
  6. What qualifies me?
    Credit score (~620+), DTI under ~43%, seasoning (6–12 months of ownership), and sufficient equity.Bankrate+1NerdWallet+1
  7. What can I use the cash for?
    Home improvements, debt consolidation, college tuition, investments, etc.LendingTree+10Amerisave+10Bankrate+10
  8. Are cash‑out refinance fees tax-deductible?
    Closing costs and mortgage interest may be tax-deductible—consult a tax advisor.
  9. How long to break even?
    Depends on savings vs closing cost; use calculator to estimate break-even timeframe.Navy Federal Credit UnionKiplinger
  10. Can I refinance again later?
    Possibly, but you’d need to meet seasoning and equity requirements again.
  11. What about ARMs vs fixed?
    Calculator works for any rate type—you can compare term options.
  12. Do I still need an appraisal?
    Yes—lenders usually require home appraisal to confirm value.
  13. Is cash-out refinance better than HELOC?
    Often yes if you want a fixed rate and lower borrowing costs; HELOC offers flexibility.MarketWatch+1nesto.ca+1BankrateNerdWallet+1NerdWallet+1
  14. Can I use it to consolidate credit card debt?
    Yes—makes sense if mortgage rate is much lower.
  15. What if home value drops?
    Lower value reduces your allowable LTV and cashable equity.
  16. Will it change term length?
    Yes—you can choose new terms (e.g. reset to 30 years).
  17. Does it affect credit score?
    Applying causes a soft inquiry; closing creates a new loan account—slight impact.
  18. What if I refinance before term ends?
    May incur penalty depending on your original mortgage terms.
  19. Is refinancing worth it if rates haven’t dropped?
    Only if you need access to cash—otherwise consider HELOC or wait for rate drops.
  20. Does the calculator account for PMI?
    Some do include PMI or insurance if your LTV exceeds guidelines.

✅ Final Thoughts

A Cash‑Out Refinance Mortgage Calculator gives clarity on how much equity you can access, how your payments and loan structure will change, and what it costs to refinance. It’s a vital planning tool to evaluate whether refinancing for cash makes financial sense—especially when comparing with alternatives like HELOCs or home equity loans.