Lock a new rate & get funded
Equity becomes cash
Get cash without selling your home, then use it for debt consolidation, renovating, or investing in your future
Lower interest rate
Replacing high-interest debt with a lower rate could save you money over time
One monthly payment
Simplify life by bringing everything together in one mortgage instead of multiple loans or credit cards
Guidelines for cash-out refinancing
Equity
You should have at least 20% equity in your home to take cash out
Credit
You’ll typically need a credit score of at least 580, depending on the loan type
Debt-to-income
You should have a stable income and a debt-to-income ratio that’s comfortable for your budget
Your home
You’ll need a clear title and updated appraisal – we can help with this!
Compare what’s out there
Let’s take a look at some of the key differences compared to other options
Allows for rate reduction
Access to cash
Best for
Links
Cash-out refinance
Allows for rate reduction
Yes
Access to cash
Yes
Best for
Accessing cash
Allows for rate reduction
No, fixed second loan
Access to cash
Yes
Best for
Keeping current mortgage intact
Rate-and-term refinance
Allows for rate reduction
Yes
Access to cash
Yes
Best for
Accessing cash
Allows for rate reduction
No, fixed second loan
Access to cash
Yes
Best for
Keeping current mortgage intact
Home Equity Loan
Allows for rate reduction
Yes
Access to cash
Yes
Best for
Accessing cash
Allows for rate reduction
No, fixed second loan
Access to cash
Yes
Best for
Keeping current mortgage intact
A cash-out refinance could be a good fit if you:
- Have equity in your home that you want to access as cash
- Have high-interest debt or big upcoming expenses
- Want one fixed monthly payment
- Plan to stay in your home for a while and want long-term value
With a cash-out refinance, you:
- Replace your existing mortgage with a larger loan
- Use the new loan to pay off your current mortgage
- Get the difference in cash
A rate-and-term refinance replaces your current mortgage with a new one, typically to lower your interest rate or change your loan term.
Unlike a cash-out refinance, you’re not borrowing extra money—just changing the rate, the term, or both to save over time.
You can use your cash-out funds for almost anything, including:
- Home renovations or repairs
- Consolidating high-interest debt
- College tuition or education expenses
- Major purchases or emergencies
Closing costs typically range from 2% to 6% of the new loan amount and can include loan origination fees, appraisal and title fees, credit report and recording fees, prepaid interest and escrow setup.