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Cash-Out Refinance Limit Calculator

Cash-out refinancing lets you tap home equity by replacing your mortgage with a larger one, taking the difference in cash. LTV limits vary by occupancy (80% primary, 75% second home, 70% investment) and closing costs eat into proceeds. This calculator sizes your true maximum cash-out after payoff and closing.

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Net cash to you

$122,400

Maximum new loan

$420,000

Gross cash-out (before closing)

$135,000

Closing cost

$12,600

Post-refi LTV

80.0%

LTV cap used

80.0%

How the math works

On a $525K primary with $285K mortgage and 80% LTV cap: max new loan = $420K. After paying off the $285K existing and 3% closing cost ($12.6K), net cash is $122.4K. LTV lands at 80% with the new loan. Investment-property cash-out at 75% LTV on the same property: max loan $393.75K, net cash $96K — $26K less than primary.

Always run both cash-out and HELOC/HEL side-by-side. Cash-out resets your entire mortgage rate; if the existing rate is low (<4%), a HELOC or HEL preserving that rate is usually cheaper even though the fixed-rate second may have a slightly higher nominal rate.

How to Use

  1. Enter current appraised value and existing mortgage balance.
  2. Choose occupancy type to apply the right LTV cap.
  3. Enter your closing costs (usually 2-5% of new loan).
  4. See new loan size, max cash to you, and post-refi LTV.

Frequently Asked Questions

What are typical LTV limits for cash-out refi?

Primary residence conforming: 80% (Fannie/Freddie). VA: up to 100% (rare). FHA: 80%. Second home: 75%. Investment property (1-unit): 75%. Investment multi-unit (2-4): 70%. DSCR loans on investment: 70-75%. Non-QM can go to 80-85% on primaries with rate premium.

Is cash-out refi still worth it at high rates?

Only if you have very high-rate debt to consolidate (credit cards at 20%+) or a clear use-of-funds producing return above the refi rate. Resetting a 3% mortgage into a 7% cash-out to pay off a 6% HELOC is usually a bad trade. Run both scenarios before committing.

Does cash-out require seasoning?

Yes. Fannie/Freddie require 12 months on-title for cash-out on primaries. Investment delayed-financing can allow cash-out within 6 months if specific rules are met. FHA requires 12 months. VA: no seasoning for IRRRL but cash-out requires the property to have been owned for a while.

What increases my LTV limit?

Strong credit (740+), low DTI (<40%), 6+ months reserves, and no late mortgage payments. Some lenders do up to 85% on primary cash-out with these profiles, especially on conforming loan amounts. Jumbo cash-out maxes at 75-80% for top-tier borrowers; 70% for average.

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