How much cash you can take out, the new loan and the new payment
Updated 2026-10-02
A cash-out refinance replaces your mortgage with a bigger one and pays you the difference. The most you can take is your home's value times the lender's maximum loan-to-value (80% on a conventional one-unit primary home), minus your payoff and any closing costs you roll in. Enter your numbers to see the cash, the new loan, your new payment and what it costs against keeping your current loan. Compare a HELOC ยท rate-and-term refinance break-even.
Your home and refinance
Your cash-out refinance
Cash you get
$75,000
most available $142,000
New loan
$333,000
LTV 66.6%
New payment (P&I)
$2,215.46
$895.87 more than now
Extra interest vs keeping your loan
$318,687
over both loans' remaining terms
Estimates for planning, not a loan offer or financial advice. Every rate and cost here is a number you enter or an example you can change; confirm figures with your lender.
Cash-out refinance limits (2026)
Freddie Mac's maximum LTV requirements (checked October 2, 2026) for cash-out refinance mortgages, fixed-rate and ARM:
Freddie Mac maximum LTV/TLTV/HTLTV, cash-out refinance
Property
Maximum LTV
1-unit primary residence
80%
2- to 4-unit primary residence
75%
Second home
75%
1-unit investment property
75%
2- to 4-unit investment property
70%
Fannie Mae's Selling Guide B2-1.3-03 (section dated December 10, 2025) adds timing rules: the first mortgage being paid off must be at least 12 months old, and a borrower must have been on title for at least six months, with listed exceptions. VA cash-out loans carry a funding fee of 2.15% (first use) or 3.3% (after first use) under VA.gov's chart.
How the cash-out is calculated
Max loan = value ร max LTV ยท Max cash = max loan โ payoff โ financed costs ยท New loan = payoff + cash + financed costs ยท Payment = Loan ร r รท (1 โ (1 + r)โn)
The current payment and interest use the same formula on your payoff, current rate and years left. "Extra interest" is the new loan's lifetime interest minus what you'd still pay on the old loan: it shows the full cost of moving the whole balance to the new rate and term, not only the cost of the cash.
Worked example
A $500,000 home with an 80% limit allows a $400,000 loan. After the $250,000 payoff and $8,000 of financed costs, up to $142,000 is available. Taking $75,000 makes a $333,000 loan (66.6% LTV). At 7% for 30 years the payment is $2,215.46, against $1,319.59 today on a 4% loan with 25 years left: $895.87 more a month.
How this calculator works, in plain language
Lenders will only lend up to a set share of your home's value. The calculator works out that ceiling, takes away what you already owe and any costs you add to the loan, and tells you how much cash is left to take. It then sizes the new loan for the cash you asked for (or the most allowed), works out the new monthly payment, and compares it with the payment and interest still left on your current mortgage, so you can see what the cash really costs.
Cash-out refinance by scenario
Six homes at an 80% maximum LTV, a new 30-year loan at an example 7%, $8,000 of closing costs rolled in and a current 4% loan with 25 years left. Rates are examples, not quotes.
Maximum cash, new loan and payment change by scenario
Scenario
Max cash
Cash taken
New loan
LTV
New P&I
Payment change
$400k home, owe $200k, want $50k
$112,000
$50,000
$258,000
64.5%
$1,716.48
$660.81
$500k home, owe $250k, want $75k
$142,000
$75,000
$333,000
66.6%
$2,215.46
$895.87
$500k home, owe $300k, want $100k
$92,000
$92,000
$400,000
80%
$2,661.21
$1,077.70
$600k home, owe $350k, want $100k
$122,000
$100,000
$458,000
76.3%
$3,047.09
$1,199.66
$350k home, owe $260k, want $30k
$12,000
$12,000
$280,000
80%
$1,862.85
$490.47
$750k home, owe $400k, want $150k
$192,000
$150,000
$558,000
74.4%
$3,712.39
$1,601.04
Two rows hit the limit: the $500,000 home owing $300,000 can release only $92,000, and the $350,000 home owing $260,000 only $12,000. With that little equity a HELOC or personal loan may be the only way to borrow the rest.
Common cash-out refinance mistakes
Looking only at the cash. The new rate applies to the whole balance. Swapping a 4% loan for 7% on $250,000 costs more than the cash itself.
Forgetting financed costs eat into the limit. Every dollar of costs rolled in is a dollar less of cash at the same LTV.
Restarting a 30-year clock. Refinancing 25 remaining years into 30 lowers the payment but adds five years of interest. Try a 20-year term above.
Using an online value estimate. The lender's appraisal sets the value; a lower appraisal shrinks the cash.
Ignoring the HELOC option. If your current rate is low, keeping it and adding a HELOC is often cheaper.
This is an estimate for planning, not a loan offer. Your lender's Loan Estimate is final.
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Multiply the home's value by the lender's maximum loan-to-value, then subtract your mortgage payoff and any closing costs you roll in. With a $500,000 home, an 80% limit and a $250,000 payoff: $400,000 โ $250,000 โ $8,000 in costs = $142,000 of cash available at most.
How much equity can I take out with a cash-out refinance?
On a conventional loan, up to 80% of the home's value minus what you owe, for a one-unit primary residence: Freddie Mac's maximum LTV for cash-out refinance mortgages is 80% (75% for 2- to 4-unit homes, second homes and one-unit investment property). Your lender can be stricter.
How soon can I do a cash-out refinance?
Under Fannie Mae's Selling Guide (B2-1.3-03, dated December 10, 2025), a first mortgage being paid off must be at least 12 months old, measured note date to note date, and at least one borrower must have been on title for six months, with listed exceptions.
Does a cash-out refinance raise my payment?
Usually, because the new loan is larger and often at a higher rate than an older mortgage. In the example above the payment rises by $895.87 a month, from $1,319.59 on a 4% loan to $2,215.46 at 7%. The whole balance moves to the new rate, not just the cash you take.
Cash-out refinance or HELOC?
A cash-out refinance replaces your whole mortgage at today's rate; a HELOC leaves your first mortgage alone and adds a second loan on top, usually with a variable rate. If your current rate is well below today's, a HELOC often costs less for the same cash. Compare with the HELOC CLTV calculator on this site.
Can I roll closing costs into a cash-out refinance?
Usually yes, within the maximum LTV. Financed costs count against the limit, so they reduce the cash you can take. Untick the box above to pay them at closing and see the difference.
What is a VA cash-out refinance?
A VA-backed loan that replaces your mortgage and lets eligible veterans take cash out. VA.gov lists a funding fee of 2.15% of the loan on first use and 3.3% after first use. Ask your lender for its maximum loan-to-value and enter it above.
