Mortgage Cash-Out Refi Calculator

Cash-out refi extracts equity but resets clock and may raise rate.

Current balance

Home value

New loan LTV %

Closing cost %

Current rate %

New rate %

Net cash to borrower

$100,125

New loan amount

$412,500

Monthly payment change

$1,155

How the math works

New loan = value × LTV. Net cash = new − old balance − closing.

$550k × 75% = $412.5k new − $300k bal − $12.4k closing = $100k cash. Payment +$1,140/mo.

How to Use

Enter current balance.
Enter home value.
Enter new loan ltv %.
Enter closing cost %.
Enter current rate %.
Enter new rate %.
Read net cash to borrower.

Frequently Asked Questions

Cash-out refi terms?

Conventional: up to 80% LTV cash-out (75% on 2nd home/investment). VA: up to 100% LTV (with VA funding fee 2.15–3.3%). FHA: up to 80% LTV. Rate premium vs purchase/rate-and-term: 0.25–0.75 bps higher. Closing cost: 2–4% of loan amount. Use cases: home improvement, debt consolidation, investment, education. Tax: cash-out interest deductible only if used to buy/build/improve home (TCJA). Track LTV, current rate vs new rate, and use-of-proceeds to value the trade.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.