Home Improvements
Consider using available equity for kitchen renovations, bathroom upgrades, major repairs, or improvements that support your home’s long-term needs.
Discuss Home Improvement Financing →
CASH-OUT MORTGAGE REFINANCING
Your Home Has Equity. Your Future Has Possibilities.
Your home equity may help you accomplish more. Explore how a cash-out refinance could provide access to funds for home improvements, debt consolidation, major expenses, or other financial goals.
Explore Available Equity
Compare Financing Options
Personalized Guidance
Make More of Your Home Equity
Explore how cash-out refinancing may support your next financial goal.
Find Cash-Out Refinance Programs in Your City
Select your state and search for your city to explore local mortgage information for this specific loan program.
Select a state to begin.
UNDERSTANDING CASH-OUT REFINANCING
Turn Available Home Equity Into Opportunity.
A cash-out refinance replaces your existing mortgage with a new, larger home loan. After the existing mortgage is paid off and applicable costs are accounted for, eligible homeowners may receive the remaining funds in cash.
The amount available depends on your home’s value, outstanding mortgage balances, loan-to-value limits, credit profile, and other qualification requirements.
Because you’re borrowing against your home, it’s important to consider the new mortgage payment, closing costs, and long-term repayment obligations.
ILLUSTRATIVE CASH-OUT EXAMPLE
See How Your Equity Could Work
Estimated Home Value
$400,000
Existing Mortgage Balance
$220,000
Illustrative LTV Limit
80%
Illustrative New Loan Amount
$320,000
Potential Cash Before Closing Costs
$100,000
Example for educational purposes only. Actual cash available may be lower after closing costs, other liens, and program restrictions. Loan approval is not guaranteed.
How Much Equity Could You Access?
Use our interactive cash-out calculator to explore estimated loan amounts and potential cash availability.
INTERACTIVE CASH-OUT REFINANCE CALCULATOR
How Much Cash Could You Access?
Explore estimated available equity, cash-out proceeds, and your potential new mortgage balance.
Your Home & Mortgage
Adjust the sliders below.
$100K$2M
$0$1.5M
$0$500K
50%90%
$0$30K
$0$500K
Your Estimated Cash-Out Potential
Illustrative results, not a loan offer.
Estimated Home Equity
$180,000
Illustrative Maximum New Loan
$320,000
Existing Liens to Pay Off
$220,000
Estimated Closing Costs
$5,000
Estimated Maximum Cash Available
$95,000
New Loan for Desired Cash-Out
$275,000
Remaining Home Equity
$125,000
Resulting Loan-to-Value Ratio
68.8%
Your desired cash-out fits the illustrative assumptions.
Discuss My Cash-Out Options →Educational estimates only. Assumes all entered liens are paid off and estimated closing costs are financed into the new mortgage. Actual loan eligibility, costs, and limits may vary. Borrowing against your home increases secured debt and may create foreclosure risk.
MAKE MORE OF YOUR HOME EQUITY
What Could You Do With Your Home Equity?
A cash-out refinance may allow eligible homeowners to access a portion of their available equity for a variety of financial goals. Explore common ways homeowners may use cash-out funds.
Debt Consolidation
Explore consolidating eligible credit cards, personal loans, or other debts. Consider repayment terms, total interest, and the risks of securing debt with your home before deciding.
Explore Debt Consolidation →Education Expenses
Some homeowners explore home equity financing for eligible education expenses. Compare the costs and risks with student financing and other available options.
Discuss Education Financing →Major Life Expenses
Cash-out refinancing may help fund significant planned expenses. Consider whether increasing your mortgage debt aligns with your long-term financial priorities.
Explore My Options →Financial Goals
Explore how available equity could support certain financial priorities. Evaluate the potential benefits, financing costs, and associated risks before borrowing.
Discuss Financial Goals →Cash Reserves
Some homeowners consider accessing equity to increase available cash reserves. Compare this strategy with alternatives before increasing debt secured by your property.
Review My Home Equity Options →Not Sure How to Use Your Home Equity?
Speak with an iLoan mortgage consultant to explore cash-out refinancing and other available home equity options.
COMPARE YOUR HOME EQUITY OPTIONS
Cash-Out Refinance vs. HELOC
Both options may help eligible homeowners access available home equity, but they work differently. Understanding the differences can help you decide which financing structure better fits your goals.
OPTION 01
Cash-Out Refinance
Replace your existing mortgage with a new, larger home loan and receive eligible remaining proceeds in cash after applicable payoffs and costs.
- Replaces your current first mortgage.
- Typically provides funds as a lump sum.
- May offer fixed-rate repayment options.
- Changes your first mortgage balance and terms.
- May involve refinance closing costs.
OPTION 02
Home Equity Line of Credit
A HELOC is generally a revolving credit line secured by your home. It typically allows you to retain your existing first mortgage.
- Generally keeps your first mortgage in place.
- Allows draws during an applicable draw period.
- Often features a variable interest rate.
- Payments may change over time.
- Fees, draw limits, and repayment terms vary.
Which Home Equity Option May Fit Your Needs?
Your existing mortgage terms, desired funding amount, and repayment preferences can influence which option makes sense.
- Consider whether you want to replace your first mortgage.
- Compare fixed and variable rate structures.
- Review upfront fees and long-term interest costs.
- Consider lump-sum funding versus flexible draws.
- Evaluate total monthly housing payments.
- Understand the risks of borrowing against your home.
Not Sure Which Option Is Better?
The iLoan mortgage team can help you compare cash-out refinancing with available home equity options based on your financial goals.
Compare My Home Equity Options →
Both options use your home as collateral.
Failure to repay may result in foreclosure.
Loan availability and eligibility depend
on applicable underwriting requirements.
UNDERSTANDING CASH-OUT ELIGIBILITY
What Do You Need to Qualify for a Cash-Out Refinance?
Cash-out refinance requirements vary by loan program, lender, and property. Understanding the factors commonly reviewed can help you prepare.
Home Equity & Property Value
Your home’s estimated value and outstanding mortgage balances help determine available equity and potential cash-out financing limits.
Loan-to-Value Ratio
Loan-to-value limits determine how much you may borrow relative to your property’s value. Maximum ratios vary by loan program.
Credit Score & History
Credit requirements vary among conventional, FHA, VA, and other eligible cash-out refinance programs. Your complete credit profile matters.
Income & Employment
Lenders generally review qualifying income, employment or business history, and documentation supporting your ability to repay the new mortgage.
Debt-to-Income Ratio
Your debt-to-income ratio compares qualifying monthly debt payments with gross monthly income. Acceptable ratios depend on the program.
Mortgage & Property History
Existing mortgage payment history, property ownership, occupancy, and applicable seasoning requirements may affect eligibility.
Documents to Prepare for Cash-Out Refinancing
Having key information available can help streamline the application process. Required documentation varies by loan program.
- Current mortgage statements and payoff information.
- Estimated property value and ownership details.
- Income and employment documentation.
- Recent bank or asset statements when required.
- Homeowners insurance and property tax information.
- Details about additional mortgages or liens.
Not Sure If You Qualify?
The iLoan mortgage team can help you explore potential cash-out refinancing options and understand which qualification requirements may apply to your situation.
Discuss My Cash-Out Options →
Loan availability and eligibility
are subject to applicable underwriting
requirements and approval.
Borrowing against your home
involves financial risk.
UNDERSTAND THE FULL FINANCIAL PICTURE
Understanding Cash-Out Refinance Costs
A cash-out refinance may provide access to available home equity, but replacing your existing mortgage involves expenses. Understanding these costs can help you evaluate the long-term financial impact.
Lender Fees & Loan Charges
Depending on the lender and loan program, costs may include origination fees, underwriting charges, and discount points if selected. Review your Loan Estimate for details.
Appraisal & Property Costs
Some cash-out refinance programs require a property appraisal or other valuation. Requirements vary based on the property, loan type, and lender.
Title & Settlement Services
Closing expenses may include title searches, lender’s title insurance, recording fees, settlement services, and other applicable third-party costs.
Prepaid Items & Escrow Funding
Your closing documents may include prepaid interest, homeowners insurance, property taxes, or initial escrow deposits. These should be distinguished from lender and settlement fees.
Can Closing Costs Be Included in the New Loan?
Some loan programs may allow eligible closing costs to be financed into the new mortgage, subject to loan-to-value limits and other requirements. Financing costs increases the loan balance and may increase total interest paid over time.
6 Smart Considerations Before Taking Cash Out
Accessing equity can create financial flexibility, but a cash-out refinance also changes your mortgage obligations. Consider these factors before deciding.
01
Increasing Your Mortgage Balance
A cash-out refinance generally increases the amount you owe. Consider how the new loan balance affects your long-term finances.
02
Changing Your Interest Rate
Refinancing replaces your existing mortgage. Compare the proposed interest rate and APR with your current loan before proceeding.
03
Extending Your Repayment Term
A longer mortgage term may reduce monthly payments but increase total interest over time.
04
Consolidating Unsecured Debt
Using home equity to pay credit cards or personal loans converts those obligations into debt secured by your home, increasing potential risk.
05
Reducing Available Home Equity
Taking cash out reduces your remaining equity and may affect your flexibility if property values change.
06
Understanding Foreclosure Risk
Your home secures the new mortgage. Failure to make required payments could result in foreclosure.
Want to Explore Your Cash-Out Numbers?
Use our interactive cash-out calculator to estimate available equity, potential proceeds, and a new loan balance.
YOUR CASH-OUT QUESTIONS ANSWERED
Cash-Out Refinance Frequently Asked Questions
Learn how cash-out refinancing works, how much equity you may be able to access, and what to consider before replacing your existing mortgage.
How much cash can I get from a cash-out refinance?
The amount depends on your home’s appraised value, existing mortgage balances, applicable loan-to-value limits, closing costs, and qualification. Different loan programs have different maximum cash-out requirements.
Try our Cash-Out Equity Calculator to explore illustrative amounts.
Do I need 20% equity to get a cash-out refinance?
Not necessarily. Equity requirements vary by loan program, property type, and other eligibility factors. Some programs may have different loan-to-value limits. An iLoan consultant can help review applicable options.
Can I use a cash-out refinance to pay off credit cards?
Cash-out proceeds may be used to consolidate eligible credit card balances and other debts. However, doing so converts unsecured debt into debt secured by your home, which increases foreclosure risk.
Learn more about debt consolidation options and important financial considerations.
Will a cash-out refinance change my interest rate?
A cash-out refinance replaces your existing mortgage with a new loan, which has its own interest rate and repayment terms. The new rate may be higher or lower than your current mortgage rate depending on market conditions and qualification.
Is a cash-out refinance better than a HELOC?
Neither option is automatically better. A cash-out refinance replaces your first mortgage, while a HELOC generally allows you to retain it. Compare interest rates, total borrowing costs, repayment terms, and flexibility.
Explore our Home Equity Line of Credit guide for additional information.
What credit score do I need for a cash-out refinance?
Credit requirements vary by loan program, lender, property type, and other underwriting factors. Your credit score is one of several factors considered.
How long does a cash-out refinance take?
The timeline varies based on appraisal requirements, loan documentation, underwriting, title review, and closing. Your lender can explain the anticipated process.
Can I get a cash-out refinance if I’m self-employed?
Self-employed homeowners may qualify. Lenders typically review qualifying income documentation, tax returns, business history, and other financial information based on the selected program.
Are cash-out refinance proceeds taxable?
Cash received from a mortgage refinance is generally borrowed money rather than taxable income. However, tax treatment and potential mortgage interest deductions depend on your circumstances and applicable law. Consult a qualified tax professional.
Can I refinance again after taking cash out?
Potentially. Future refinancing depends on qualification, equity, loan program requirements, applicable waiting periods, and financial circumstances. Each refinance involves potential costs and tradeoffs.
Still Have Questions About Cash-Out Refinancing?
Connect with the iLoan mortgage team to explore available equity financing options and understand your next steps.
PERSONALIZED HOME EQUITY GUIDANCE
Explore Your Cash-Out Refinance Options With iLoan
Ready to explore how your home equity could support your financial goals? Connect with the iLoan mortgage team to discuss your options and next steps.
Let’s Make Your Home Equity Work for You.
Whether you’re considering home improvements, debt consolidation, or another major financial goal, our mortgage professionals can help you understand available cash-out refinance options and alternatives.
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Review Your Available Equity
Discuss your estimated property value and existing mortgage balances.
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Explore Cash-Out Loan Programs
Review potential financing options based on your circumstances and applicable qualification requirements.
✓
Understand Your Next Steps
Learn about documentation, closing costs, repayment terms, and the refinancing process.
Prefer to speak with us directly?
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Request Your Cash-Out Refinance Consultation
Complete the form below and an iLoan team member can help you explore available home equity options.
iLoan LLC · NMLS #1947845.
Loan options are subject to applicable
underwriting requirements and approval.
Submitting an inquiry does not constitute
a loan application or guarantee financing.
Borrowing against your home involves risk.
