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Cash-Out Mortgage Refinance Calculator
Refinancing your mortgage can help you lower your interest rate, reduce your monthly payment, change your loan term, or all three. And despite the tool’s name, you don’t have to take cash out to benefit. A “rate-and-term refinance” simply replaces your existing mortgage with a new loan that may offer a better deal.
Our cash-out mortgage refinance calculator (also called a cash-out refinance calculator or mortgage refinance calculator) helps you estimate how a new loan could affect your mortgage payment, your total interest costs, and your break-even timeline after closing costs.
Cash-Out Mortgage Refinance Calculator
Compare your current mortgage to a new refinance scenario. Results are estimated and typically reflect principal and interest only (escrow is not included).
Current loan
Enter your best estimates. You can adjust anytime.
What Your Refinance Could Look Like Estimated
- Pay $— less each month
- Spend $— less over the life of the loan
- Break even on upfront costs in —
| Current loan | New loan | Difference | |
|---|---|---|---|
| Loan amount | $— | $— | — |
| Loan term | — | — | — |
| Monthly payment (P&I) | $— | $— | — |
| Interest rate | — | — | — |
| Total interest | $— | $— | — |
| Total payments | $— | $— | — |
| Upfront costs | — | $— | — |
Estimated Balance Over Time
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Important: This calculator is for educational purposes only. Results are estimates and may not reflect actual loan offers. Rates and costs vary by lender and by individual circumstances.
How To Use The Cash-Out Mortgage Refinance Calculator
Many choose to simply input quick estimates first to get an idea of potential savings, and come back to put in more accurate numbers later.
- Enter your existing mortgage details: remaining balance, current interest rate, and remaining loan term.
- Enter your new refinance scenario: new loan term and estimated new interest rate.
- Add upfront costs: include closing costs and any points, if applicable.
- Add your cash out amount (optional): enter the extra cash you want to borrow.
- Review results: compare estimated monthly payment, total interest, and break-even timing.
Pro TipFrom our on-staff Certified Financial Educator Many homeowners don’t know their exact total mortgage payment because lenders often include property taxes and homeowners’ insurance in escrow and as part of their monthly payments. If you’re unsure, focus on principal-and-interest estimates and treat total payment results as directional, not exact. You can also check your statement for these amounts if you wish to be more precise. |
What Is a Cash-Out Refinance? And Why People Use It
A cash-out refinance replaces your existing mortgage with a new, larger loan amount. In the transaction, you pay off the old balance and take the difference as a cash-out amount at closing.
People often use a cash-out refinance to pay for:
- Home improvements
- Consolidating high-interest debt, including credit cards
- Covering emergency costs or major life expenses
In most cases, the amount of money you can access depends on your equity in your home, your lender’s guidelines, and your credit score.
Can I Refinance My Home Without Taking Out Cash?
A rate-and-term refinance changes your interest rate and/or loan term without increasing the loan amount. However, closing costs will apply. You can use this approach when you want a lower payment or a faster payoff, but you don’t need cash.
There are several reasons you may choose to refinance without taking out equity:
- Switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage for stability and predictability.
- Take advantage of any recently reduced interest rate offerings.
- Qualify for a better interest rate than your existing mortgage if your credit score has improved since initially getting the loan.
- Potentially remove the need to pay private mortgage insurance (PMI).
- What Your Refinance Results Mean
Your cash-out mortgage refinance calculator estimates the outputs you’ll want when comparing refinance loan options.
- Monthly payment and mortgage payment change
- Total interest difference between the old and new loans
- Break-even point, or how long it could take to recover closing costs
Note: Your break-even point matters most if you’re not sure how long you’ll keep the home or the new loan. If you move before you break-even with the new arrangement, the refinance may not be worth it.
What Does a Good Refinance Look Like?
A refinance can look “good” in different ways. It all depends on your refinancing goals.
A refinance is considered a solid choice if it:
- Lowers your monthly payment and improves cash flow.
- Lowers your interest rate to reduce lifetime interest costs.
- Shortens your loan term to build equity faster and save money overall.
- You benefit from the cash-out amount for home improvements or paying off higher-interest debt.
- You keep your home until after the break-even point on the new loan.
Other Ways To Access Cash Without Refinancing Your Mortgage
If you’re seeking to make a large purchase, consolidate debt, or just need cash for other reasons, refinancing your mortgage isn’t your only option. Depending on your goals, timeline, and credit profile, you likely also have other alternatives to consider.
1. Debt Consolidation
If you’re considering refinancing to pay down other high-interest balances, debt consolidation could be a better fit than putting your home at risk as collateral. Consolidation can be especially helpful for paying off credit card debt, which typically has higher rates than home loans.
2. Personal Loans
While the amount and interest rate you can get for a signature, or personal, loan vary widely depending on several factors, a personal loan can provide a lump sum for a specific need or to consolidate debt.
3. HELOCs
You can also access part of your home’s equity through A HELOC or home equity loan. HELOCs can offer more flexibility than a full refinance, depending on your needs, and can be useful if you want to keep your current mortgage rate and borrow only what you need.
A side-by-side look at how a HELOC and a cash-out refinance differ when accessing home equity.
Financial Calculators
Regardless of your financial situation or where you’re starting from. Understanding your options is always the best money move. Here are several free financial calculators to help you evaluate your position and make excellent financial choices.
- Personal Loan Calculator
- Debt Consolidation Calculator
- Home Equity Loan Calculator
- HELOC Payment Calculator
- Mortgage Payoff Calculator
- Early Loan Payoff Calculator
- Debt Snowball Budget Calculator
- Monthly Budget Calculator
- Auto Loan Early Payoff Calculator
- Auto Loan Refinance Calculator
- Home Affordability Calculator
- Car Affordability Calculator
- Savings Interest Rate Calculator
- And More!
FAQs
What’s the difference between a cash-out refinance and a standard refinance?
A cash-out refinance provides you with access to cash that’s tied up in the equity you have in your home. The arrangement increases your loan amount by the equity you take out, plus closing costs. A standard rate-and-term refinance changes your interest rate and/or loan term without taking cash out.
Should I choose a fixed-rate mortgage or an adjustable-rate mortgage?
The type of mortgage you choose solely depends on your financial goals. A fixed-rate mortgage provides predictable, steady monthly payments, while an adjustable-rate mortgage provides payments that can fluctuate over time based on prevailing interest rates. ARM payments may start lower but can change later. Your best option depends on how long you plan to keep the loan and how comfortable you are with changing rates.
Conclusion
Refinancing your home can help you lower your interest rate, change your loan term, reduce your monthly payment, or access equity in your home through a cash-out amount. Use our cash-out mortgage refinance calculator to compare scenarios and understand how closing costs may affect your break-even point and other factors. You can also check out our other financial calculators to assist you with all of your budgeting and financial decision-making needs.
For guidance tailored to your specific situation, consider consulting with qualified professionals before choosing a refinance loan.