Cash-Out Refinance — Check Your Rate in 30 Seconds

The amount you can pull out depends on your home value, your current mortgage balance, and the loan program. As a rough example: on a conventional cash-out capped at 80% LTV, a home worth $400,000 with a $200,000 existing mortgage could support a new loan up to $320,000 — roughly $120,000 in gross cash before closing costs. FHA allows up to 85% LTV, and VA can go up to 100% LTV for eligible veterans. Our free rate check shows you an estimate based on the numbers you enter.

A cash-out refinance replaces your existing first mortgage with a new, larger loan at a fixed or adjustable rate. A HELOC (home equity line of credit) is a second lien that sits behind your existing mortgage, typically at a variable rate, and works like a credit card you draw from. Cash-out is one loan and one payment. HELOC is two loans and two payments. The right choice depends on your current mortgage rate, how much you need, and whether you want a fixed payment. We can walk you through both options.

Under current IRS rules, mortgage interest is generally only deductible on cash-out proceeds that are used to "buy, build, or substantially improve" the home securing the loan. Proceeds used for other purposes — debt consolidation, college, vacations — typically are not deductible. Tax rules change and depend on your individual situation. We recommend consulting a tax professional. Lendtrain does not provide tax advice.

Yes, many homeowners use cash-out refinance proceeds to pay off higher-rate credit cards, personal loans, or auto loans. The trade-off is that you are converting unsecured debt into debt secured by your home, and you are stretching it out over a longer term. The monthly payment may drop, but total interest paid over the life of the loan can be higher if you are not careful. Run the full math before you commit.

Maximum loan-to-value varies by program. Conventional cash-out (Fannie Mae / Freddie Mac) typically caps at 80% LTV on a primary residence. FHA cash-out allows up to 85% LTV. VA cash-out can go up to 100% LTV for eligible veterans, which is one of the few programs that allows full equity cash-out. Investment properties and second homes have lower caps. Lender overlays may apply.

Generally, cash-out refinance rates price slightly higher than a no-cash-out (rate-and-term) refinance because agencies price in more risk for cash-out transactions. The exact difference depends on the program, your credit score, LTV, and the market that day. Our free rate check shows you an estimated rate for a cash-out scenario in about 30 seconds.

Yes, but Texas has specific rules under the state constitution (Section 50(a)(6), commonly called a "Texas home equity" loan) that apply to cash-out refinances on a primary residence. These rules cap total fees, require specific disclosures, and set a 12-day waiting period from application. Lendtrain is licensed in Texas and handles the 50(a)(6) process for eligible borrowers.

A typical cash-out refinance takes 30 to 45 days from application to closing, depending on the appraisal, title work, and the lender. After closing there is a 3-business-day right of rescission on primary residences, meaning you actually receive the cash a few days after the closing date.