To get cash out when you refinance your mortgage, you typically need to have more than 20% equity in your home but every situation is unique. Your lender will advise the maximum amount of cash you can receive based on your inquiry loan application. Then it’s up to you to decide how much you want to take out and how much you want to roll over into your new mortgage. But before you borrow against your home, it’s important to understand the benefits and risks.


  • It frees up cash. If you have equity in your home, refinancing can provide the cash you need to consolidate high-interest debt, pay off outstanding bills or maintain a financial cushion for emergencies. If you have a significant amount of equity in your home, you may be able to take out a large loan, if you qualify.
  • You may qualify for a lower interest rate. Rates are near historically low levels. If you closed your existing mortgage several years ago when rates were higher or your credit has improved since you took out your current loan, you may be able to get a lower interest rate.
  • More space:  We have touchless mortgage options available for a cash out refinance if you are interested in adding a bedroom or bathroom, or that kitchen upgrade project on your list.


  • Home retainment.  The biggest risk associated with a cash-out refinance loan is the associated payment and your ability to repay.
  • You must pay closing costs. You’ll be charged closing costs on your new mortgage just like when you got your original loan.
  • You restart the repayment clock. When you refinance your existing mortgage, you get a new loan with a new term. That means if you’re 10 years into a 30-year mortgage and refinance into another 30-year mortgage, instead of being on track to pay off your loan in 20 years, you’ll be on track to pay it off in 30 years.

Getting a cash-out refinance loan is a financial decision. If you have questions about whether it’s the right choice for you or if you’re ready to get started on your new loan, our Licensed Mortgage Professionals are ready to help.