Cash-Out Refinance Made Easy

Turn your home equity into low-cost cash for debt payoff, renovations, tuition and more.

Crush High-Interest Debt 🏦

Swap double-digit card APR for a single low-rate mortgage payment.

Fund Major Renovations 🔨

Finance kitchens, baths & additions—boost comfort and resale value.

Pay Off Student Loans 🎓

Bundle education balances into one manageable payment.

Conventional Cash-Out Refinance vs Fixed-Rate HELOC

Conventional Cash-Out (FNMA / FHLMC)

  • Max LTV: 80 % (75 % on 2-4 unit & condos)
  • Min FICO: 620 (pricing improves 680+)
  • Mortgage Insurance: None when ≤ 80 % LTV
  • Loan Limits: Up to \$1.15 M high-balance (2025)
  • Early pay-off flexibility: No prepay penalty on owner-occupied

Fixed-Rate HELOC / HELOAN

  • Second-lien—keep your ultra-low first mortgage intact
  • Interest-only draw for 2-10 yrs; then amortize over 20-yrs
  • CLTV up to 85 – 90 % with strong credit
  • Fast closings—often no appraisal under \$250 k
  • Great for incremental projects or staged tuition bills

Choose conventional when you need a large lump sum & prefer one fixed payment; choose HELOC for flexible, smaller draws or if your first mortgage rate is dramatically lower than today’s.

Why Homeowners Pull Cash-Out in 2025

  • Record Tappable Equity: National average \$206 k—don’t leave it idle.
  • High-Rate Consumer Debt: Cards at 22 %+. Mortgage rates ≈ 6-7 %.
  • Renovation Pay-Back: Energy-efficiency upgrades recoup up to 85 % of cost.
  • HELOC Resets: Many 2015 HELOCs hitting amortization—refi before payment shock.

Popular Ways Homeowners Use Equity

  1. Credit-Card Payoff: Erase balances & lift FICO scores.
  2. Kitchen / Bath Remodel: #1 ROI project four years running.
  3. College Tuition: Borrow at mortgage rates vs private loans 10 %+
  4. Investment Property Down Payment
  5. Medical or Business Startup Costs

Cash-Out Refinance FAQs

How much equity do I need?

Conventional requires 20 % equity left after closing. FHA: 20 % as well. VA can refinance up to 100 % LTV.

Will my payment increase?

Depends on new balance, rate & term. Many borrowers cut total monthly outgo by rolling high-interest debt into one payment.

Is the cash taxable?

No. Loan proceeds aren’t treated as income.

How long does the process take?

Typical closing 14–30 days. Rapid-close options available if appraisal waiver applies.