Cash-Out Refinance
Turn Your Home Equity Into Cash. On Your Terms. At Mortgage Rates.
You've built serious equity in your home. A cash-out refinance lets you pull a chunk of it as cash to consolidate debt, renovate, invest, launch a business, or fund tuition — at mortgage rates (6-7%), not credit card rates (22%+). We shop your file across 20+ wholesale lenders to get you the highest cash out at the lowest rate.
Up to 80%LTV standard programs
Up to 100%LTV on VA cash-out
21-30 daysTypical closing
20+ lendersWe shop for you
6 Reasons Homeowners Choose Cash-Out Refi Over a HELOC or Personal Loan
Cash-out refi replaces your existing mortgage with a larger one and gives you the difference as cash. Fixed rate. Fixed payment. 30 years to repay. Here's what our clients do with it.
Wipe Out High-Interest Debt
Credit cards at 22% APR are wealth killers. Roll $40,000 of card debt into a cash-out refi at 6.5% and you save $6,200/year in interest alone. Same debt, dramatically better terms.
Save $3K-$10K/yr typicalFund Major Home Improvements
Kitchen remodel, primary bath, ADU, solar, backyard build-out. Cash-out lets you self-fund the project without a second loan — and often those improvements add more value to the home than they cost.
Tax-deductible if home usePay for College Tuition
Cash-out at 6.5% beats parent PLUS loans at 8-9% and private education loans at 10-13%. Fund one or four years of tuition in a single lump sum with a fixed, predictable payment.
Better rate than PLUS loansBuy an Investment Property
Use cash-out from your primary home as the down payment on a rental or vacation property. You keep the primary rate low and get a rental at investment property rates. Two rates, two properties, one strategy.
Common wealth-building playLaunch a Business
Business loans are hard to get and expensive when you can get them. Cash-out gives founders $50K-$300K at fixed mortgage rates instead of variable business rates 3-4% higher. No personal guarantee beyond your home.
Cheaper than SBA typicallyMedical or Emergency Fund
A large planned medical bill, an aging parent's care, a divorce buyout, a family emergency. Cash-out gives you a defined, low-rate payment plan instead of putting the burden on high-interest credit or 401(k) loans.
Predictable monthly payment
How Much Cash Can You Take Out? It Depends on Your Loan Program.
The loan-to-value (LTV) ceiling on a cash-out refi varies significantly by program. This is where a wholesale broker matters — different investors offer different ceilings on the same file.
| Program | Max Cash-Out LTV | Best For | Notes |
|---|---|---|---|
| Conventional (Fannie / Freddie) | 80% LTV | Most homeowners with strong FICO 720+ | Best rates in normal market. PMI possible above 80% but limits cash-out to 80% anyway. |
| FHA Cash-Out | 80% LTV | Lower FICO (as low as 580 with some lenders) | More flexible on credit and DTI. Includes upfront + annual MIP. Best for stretched files. |
| VA Cash-OutBest | 100% LTV | Veterans, active duty, some surviving spouses | Highest ceiling in the market. No PMI. Funding fee applies (can be rolled into loan). |
| Jumbo Cash-Out | 70-80% LTV | Loan amounts above conforming limits ($806K+ most of US) | Investor-specific ceilings. Some jumbo cash-out programs cap at 70% for larger loans. FICO usually 700+. |
| Non-QM Cash-Out | 75-85% LTV | Self-employed, complex income, DSCR | Bank statement, DSCR, asset depletion programs. Higher rates but more flexibility on income documentation. |
LTV ceilings shown are program maximums. Your file may qualify for less depending on FICO, DTI, occupancy, and property type. We'll pre-shop your file across all programs above at no cost.
The Math: How Much Cash Can You Actually Get?
The cash-out amount is the difference between the new loan and everything else that has to be paid off at closing (existing mortgage + closing costs).
Example: $700K Home, $300K Owed, Conventional 80% LTV
Home value × 80% LTV → $700,000 × 0.80 = $560,000 max new loan
Minus existing mortgage payoff → − $300,000
Minus closing costs (rolled in) → − $14,000
= $246,000 in cash to you at closing
Same home, VA-eligible borrower at 100% LTV would net closer to $385,000 cash at closing. Same home, jumbo cash-out at 70% LTV nets closer to $176,000 cash. Your file, your program, your ceiling.
Cash-Out Refi vs HELOC vs Home Equity Loan vs Personal Loan
Four common ways to convert home equity or borrow money. Each has a different best-use case. Here's how to pick the right one.
Cash-Out Refi
Rate: 6.5-7.0% · Fixed 30-year
- Fixed rate for full term
- Single monthly payment
- Highest borrowing ceiling
- Interest may be tax-deductible
- Restarts amortization clock
Best for: large cash needs ($50K+), long-term debt consolidation, home improvement, business.
HELOC
Rate: 8-10% · Variable
- Revolving credit line
- Interest only during draw period
- Only pay for what you use
- Variable rate can spike
- Payment can jump at repayment period
Best for: unpredictable ongoing needs, home renovation done in phases, emergency backstop.
Home Equity Loan
Rate: 7.5-9% · Fixed
- Fixed rate for term
- Fixed monthly payment
- Keep your first mortgage untouched
- Second mortgage payment on top of first
- Higher rate than cash-out
Best for: keeping a very low first mortgage rate intact while borrowing a smaller amount.
Personal Loan
Rate: 10-24% · Fixed 3-7 yr
- No collateral (home not at risk)
- Fast approval (days)
- Short repayment term
- Highest rate of the four
- Small loan amounts typical
Best for: short-term needs under $50K when speed matters more than rate.
Three Cash-Out Refi Scenarios We Close Regularly
Real-shape scenarios pulled from OnPoint files. Your specific numbers will differ. The math is honest.
Scenario A · Debt Consolidation
Wipe $45K of Credit Card Debt
Orange County homeowner. $725K home, $390K owed. Carries $45K in cards at 22% APR. Roll it all into a cash-out refi.
Cash-out amount$45,000
New loan / rate$449K / 6.5%
Old CC min payments$1,350/mo
New mortgage payment+$355/mo vs old
Net monthly cash flow+$995/mo
Annual CC Interest Killed
$9,900/yr
Scenario B · ADU / Home Improvement
Build a Backyard Rental Unit
San Diego homeowner. $950K home, $450K owed. Wants to build a $180K ADU for rental income ($2,800/mo market).
Cash-out amount$180,000
New loan / rate$640K / 6.5%
New payment increase+$1,180/mo
Expected ADU rent$2,800/mo
Home appraisal after ADU+~$220K value
Net Monthly Cash Flow
+$1,620/mo
Scenario C · VA Cash-Out 100% LTV
Veteran Unlocks Full Equity
Riverside veteran homeowner. $580K home, $220K owed. Wants to pay off medical debt + fund kids' tuition. Uses VA cash-out.
Home value$580,000
Max VA cash-out (100% LTV)$580,000
Minus existing payoff + costs− $232K
Cash to borrower$348,000
New payment increase+$1,830/mo
Debt Retired + Tuition Funded
$348K liquid
Illustrations based on July 2026 wholesale pricing, 30-year fixed, 720+ FICO. We'll run YOUR exact scenario in 24 hours, free, no credit impact at first call.
When NOT to Cash Out (Broker's Honest Take)
Cash-out refi is a powerful tool. It's also easy to misuse. Here's when we'll tell you not to do it, even if you qualify.
- Your current rate is 4% or below. Cashing out means giving up that rate on your entire balance. A HELOC or Home Equity Loan preserves the first mortgage. Do the math both ways.
- You'd use it for consumption, not an asset. A car, a vacation, a boat. You're pulling long-term equity to fund short-term consumption. There are better tools.
- You'll run the credit cards back up after payoff. Debt consolidation only works once. If the cards return, you've doubled your debt (mortgage AND cards). We'll ask you the hard question.
- You're within 3 years of retirement. Restarting a 30-year amortization at 65 means carrying a mortgage into fixed-income years. Sometimes right; often not. Talk to us and your financial advisor.
- Your job is at risk or income is dropping. Cash-out increases your monthly obligation. Not the time to add a bigger payment.
- You just refinanced 6 months ago. You'll pay closing costs again on the same equity you already touched. Wait for a real rate improvement or major equity build-up.
Cash-Out Refi Process: 5 Steps, 21-30 Days
We do the shopping and the paperwork. You review, sign, and get the cash. Mobile notary options available for closing.
1
Discovery Call
30-min call to understand your equity, your goal, and your file. No credit pull at this stage.
15-30 min2
Rate Shop
We shop your file across 20+ wholesale lenders. Present the top 3 with side-by-side comparison.
24-48 hrs3
Application + Docs
You upload income, asset, and credit docs. Soft or hard credit pull based on program.
Days 1-34
Appraisal + Underwriting
Home appraisal orders same day. Underwriter reviews. Conditional approval typically day 10-15.
Days 4-205
Sign + Fund
Sign at title or with mobile notary. Federal 3-day rescission. Cash wires to your account.
Days 21-30Victor Santos, NMLS #888844 — Your Wholesale Broker
Senior Loan Officer at OnPoint Mortgage Pro. Headquartered in Irvine, California. Licensed in 9 states. When you call, you talk to me — not a call center.
- 20+ wholesale lenders competing for your loan
- Direct broker access, no retail markup
- Same-day quote turnaround
- Free cash-out analysis, no credit impact
What Real Clients Say About OnPoint
Verified reviews from OnPoint Mortgage Pro clients across our purchase, refinance, and cash-out refi book. No edits. No curation.
Cash-Out Refinance FAQ
The questions we hear most. If yours isn't here, call (877) 870-0007 — we'll answer it in the discovery call.
How much equity do I need to do a cash-out refi?
You need to leave enough equity in the home to satisfy the program's LTV ceiling. For conventional and FHA cash-out, that's 20% equity remaining (80% LTV cap). For VA cash-out, you can go all the way to 100% LTV, meaning you can cash out essentially all your equity. For jumbo cash-out, expect 20-30% equity remaining depending on loan size and investor.
Are cash-out refi rates higher than rate-and-term refi rates?
Yes, typically 0.25-0.50% higher. The lender is taking more risk (higher LTV, larger loan). This is priced into the rate. That said, we shop across 20+ wholesale lenders and the spread varies significantly — sometimes we find cash-out pricing that matches rate-and-term at a specific lender.
How long does a cash-out refi take to close?
21-30 days is typical. VA and FHA cash-out sometimes take a few days longer due to program-specific underwriting. Non-QM cash-out (bank statement, DSCR) can close faster than conventional in some cases because there's less documentation. We give you a real timeline in the discovery call, not marketing math.
Is the cash I take out taxable?
No. Cash-out refi proceeds are NOT considered income for tax purposes — it's a loan, not income. You may lose some mortgage interest deduction eligibility on the cash-out portion if you use it for non-home purposes (per current TCJA rules), so consult a CPA on the deduction question specifically.
Can I use cash-out proceeds to buy an investment property?
Yes. This is one of the most common wealth-building uses. You keep your primary home's low rate on the primary loan and use cash-out proceeds as the down payment on a rental or investment property. Two rates, two properties, one strategy. See our Cash-Out Refi for Investors guide for the full playbook.
What are the closing costs on a cash-out refi?
Typically 2-4% of the new loan amount. You can pay them out of pocket at close, roll them into the loan (most common), or take a lender credit for near-zero out of pocket in exchange for a slightly higher rate. On a $450K new loan, closing costs are $9,000-$18,000. We show you all three options with the actual break-even math.
What's the difference between cash-out refi and HELOC?
Cash-out refi replaces your existing mortgage with a bigger one at a fixed rate; you get the difference in cash at close, and repay it over 30 years. HELOC is a second mortgage — a revolving credit line at a variable rate, tied to prime. Cash-out is better for large lump-sum needs and long-term repayment. HELOC is better for unpredictable, ongoing draws. Full comparison in the table above.
Can I do cash-out on an investment property?
Yes, but LTV ceilings are lower (typically 70-75% max on 1-4 unit investment properties), rates are higher (0.5-1.5% above owner-occupied), and reserves requirements are stricter (6-12 months). DSCR loan programs are often the best fit for investment cash-out on properties held in an LLC or held for pure rental income.
Will a cash-out refi hurt my credit score?
Short-term impact is typical: a hard credit pull drops your score 3-10 points temporarily, and opening a new large loan slightly changes your credit utilization mix. Long-term impact is usually positive: paying off high-interest revolving debt (credit cards) with a lower-interest installment loan often boosts scores by 20-50 points over 6-12 months. Net effect: nearly always positive if you're using cash-out for debt consolidation.
How is a cash-out refi different from a home equity loan?
Cash-out refi REPLACES your existing mortgage — you have one loan. Home equity loan (HEL) is a SECOND mortgage on top of your existing one — you have two loans, two payments. HEL preserves your existing first mortgage rate (helpful if it's very low). Cash-out gives you a lower blended rate and single payment. Different tools for different situations.
Can I get a cash-out refi if I'm self-employed?
Yes. If your tax returns show enough income for conventional/FHA/VA, those programs work. If you write off aggressively and your tax returns understate cash flow, we use Non-QM programs (bank statement, DSCR, asset depletion). Bank statement programs qualify you on 12 or 24 months of business bank deposits — often 40-70% more borrowing power than conventional would allow.
Do you do cash-out refi in states other than California?
Yes. OnPoint Mortgage Pro is licensed in California, Colorado, Florida, Idaho, Maryland, New Hampshire, South Carolina, Texas, and Virginia. All programs above are available in all licensed states, though state-specific LTV limits and title fees may vary slightly.
Ready to Turn Your Equity Into Cash?
Free cash-out analysis. 24-hour quote turnaround. No credit impact at the first call. We'll shop your file across 20+ wholesale lenders and show you the top 3 options side by side.
(877) 870-0007