401(k) Loan Calculator
Calculate 401(k) loan repayment, interest paid back to yourself, and the opportunity cost of lost market returns. See the true cost of borrowing from retirement.
Cash-Out Refinance Calculator
Calculate cash-out refinance proceeds, new payment, LTV, and compare costs against your current mortgage. See PMI thresholds and scenario analysis.
$
$
%
yrs
$
%
yrs
$
Cash Out Amount⧉
$122,000.00
New loan − old balance − closing costs
New Monthly Payment⧉
$2,270.09
vs $1,350.99 current
Payment Change⧉
+$919.10/mo
Higher payment
Loan-to-Value (LTV)⧉
77.8%
Below 80% — no PMI
Remaining Equity⧉
$100,000.00
Home value − new loan
New Total Interest⧉
$467,234.00
Over new loan term
Equity Position
Loan 77.8%
Equity 22.2%
Cost Comparison
| Item | Current Loan | New Loan | Difference |
|---|---|---|---|
| Monthly Payment | $1,350.99 | $2,270.09 | +$919.10 |
| Total Interest | $185,298.00 | $467,234.00 | +$281,936.00 |
| Closing Costs | — | $8,000.00 | $8,000.00 |
LTV Scenarios
| Max LTV | Max Loan | Max Cash Out | PMI Required |
|---|---|---|---|
| 60% | $270,000.00 | $42,000.00 | No |
| 70% | $315,000.00 | $87,000.00 | No |
| 75% | $337,500.00 | $109,500.00 | No |
| 80% | $360,000.00 | $132,000.00 | No |
| 85% | $382,500.00 | $154,500.00 | Yes |
| 90% | $405,000.00 | $177,000.00 | Yes |
Planning notes, formulas, and examples
About the Cash-Out Refinance Calculator
A cash-out refinance replaces your current mortgage with a larger one and turns part of your home equity into cash. The main questions are how much proceeds remain after payoff and closing costs, how the new payment compares with the old one, and how much equity cushion you give up by taking cash out.
Program rules differ by lender, loan type, occupancy, credit profile, and property characteristics. Many conventional scenarios use about 80% loan-to-value as a common planning benchmark, but the real limit and pricing adjustments depend on the specific quote and underwriting path.
This calculator models the transaction as a refinance worksheet. It estimates net proceeds, recomputes the principal-and-interest payment for the proposed new loan, and shows the resulting LTV against the entered home value. The scenario table is there to help compare leverage levels, not to represent a universal lending promise.
When This Page Helps
Use this when you want to turn home equity into cash while understanding the trade-off in payment, interest cost, and remaining equity. It helps you compare the refinance against keeping the current mortgage or using a HELOC instead.
How to Use the Inputs
- Enter your current home value.
- Input your existing mortgage balance and rate.
- Specify remaining term on the current loan.
- Set the new loan amount, rate, and term.
- Enter estimated closing costs.
- Review cash-out amount, payment change, and LTV.
- Check the LTV scenarios for maximum borrowing levels.
Formula used
Cash Out = New Loan Amount − Current Balance − Closing Costs. LTV = New Loan / Home Value × 100. New Payment = New Loan × [r(1+r)^n] / [(1+r)^n − 1].Example Calculation
Result: Cash out: $122,000 — New payment: $2,270/mo — LTV: 77.8% — No PMI
Refinancing from a $220K balance to a $350K loan at 6.75% yields $122,000 cash ($350K − $220K − $8K closing). The new payment is $2,270/mo. LTV of 77.8% stays below the 80% PMI threshold, and you retain $100K in equity.
Tips & Best Practices
- Use 80% LTV as a conservative planning benchmark unless you already have a specific lender guideline in hand.
- Closing costs, pricing adjustments, escrow setup, and mortgage-insurance treatment vary by loan program and borrower profile.
- Compare cash-out refinance vs HELOC — a HELOC may be better for smaller amounts or variable needs.
- Using cash-out for home improvements can increase your home value, partially or fully offsetting the cost.
- Using cash-out for debt consolidation only makes sense if you actually pay off the high-rate debt and don't re-accumulate it.
- Remember that a cash-out refi resets your loan term — you may pay more total interest even at a lower rate.
Cash-Out Trade-Offs
A lower rate does not automatically make a cash-out refinance better. The larger balance, closing costs, and longer repayment horizon can raise the total interest paid even when the monthly payment looks manageable.
Equity and LTV
LTV is the main guardrail. Staying at or below 80% usually avoids PMI, while higher leverage can make the refinance more expensive. Use the scenario table to compare how much cash you gain against the equity cushion you give up.
Sources & Methodology
Last updated:
Methodology
This page estimates a cash-out refinance by subtracting the current mortgage payoff and estimated closing costs from the proposed new loan amount to show net proceeds. It then computes the new monthly principal-and-interest payment from the proposed rate and term, compares that payment with the current mortgage path, and shows the resulting loan-to-value ratio against the entered home value.
It is a refinance-screening worksheet, not a lender disclosure. Actual cash-out limits, pricing adjustments, mortgage insurance treatment, and closing costs vary by borrower profile, property type, and loan program, so the official Loan Estimate and Closing Disclosure control.
Sources
- Cash-Out Refinances and Paydown Behavior of Non-mortgage Debt Balances (Consumer Financial Protection Bureau) — CFPB research report explaining how cash-out refinances are used and the tradeoff between extracting cash and increasing mortgage debt risk.
- Is there such a thing as a no-cost or no-closing cost loan or refinancing? (Consumer Financial Protection Bureau) — CFPB explanation that refinance costs are still paid either through higher rates or larger loan amounts, which matters for cash-out comparisons.
Frequently Asked Questions
The usable amount comes from the proposed new loan minus your current payoff and closing costs. Many borrowers use an 80% LTV ceiling as a conservative estimate, but the real limit depends on lender rules, loan program, occupancy, credit, and property details.
The cash received is not taxable income — it is loan proceeds, not earnings. However, the interest on the new loan is only tax-deductible to the extent it is used for home improvements (under current tax law). Consult a tax professional.
A cash-out refi replaces your entire mortgage with a new loan. A HELOC is a second lien (revolving credit line) on top of your existing mortgage. Cash-out refi typically has lower rates but higher closing costs. HELOCs are more flexible for ongoing needs.
Cash-out pricing can differ from a rate-and-term refinance because the loan is larger and the remaining equity cushion is smaller. The exact spread varies by lender, loan program, credit profile, and the final LTV.
The timeline depends on appraisal, underwriting, disclosures, title work, and any program-specific waiting periods. It is best treated as a lender-process question rather than a fixed number of days.
The main risks are: reduced equity (less cushion if home values drop), higher monthly payment, more total interest over the life of the loan, and potential for negative equity if the market declines. Only cash out what you truly need.
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