Loan program

Cash-out refinance

Replace your loan with a larger one and receive the difference as cash, using some of your home equity.

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Typical terms

15 to 30 years, fixed or adjustable. The new loan is larger than the old one. Loan-to-value limits and closing costs apply.

Example minimum down payment

20% equity remaining after the cash-out in this example.

Who it is for

Homeowners with built-up equity who have a specific, planned use for the cash, such as repairs, improvements or paying off other debt.

Pros

Turns home equity into cash for a planned purpose. One monthly mortgage payment. Fixed-rate options are available.

Considerations

You borrow more against your home and may pay more interest over time. Your payment may rise. If a loan cannot be repaid, the home is at risk.

About this program

A cash-out refinance replaces your current mortgage with a larger one. The new loan pays off the old balance, and you receive the difference in cash at closing.

Because you are borrowing more against your home, it works best with a specific plan for the money and a monthly payment you are confident you can manage. Lenders usually require that some equity stays in the home.

Talk through the trade-offs with a loan officer before you decide. Planner figures are illustrative only and are not an offer or a commitment to lend.

Try it with this program

Home price

Down payment

$90,000 down

Term

Illustrative interest rate

For a $360,000 loan, about $2,305 a month in principal and interest.

Principal and interest: $2,305
Estimated taxes and insurance: $500
Total estimated monthly payment: $2,805
Loan amount: $360,000

Estimates only. Rates and figures are illustrative, not a rate quote, loan offer or commitment to lend.

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Carries your price, down payment and term into the application.

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