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Ask us what cash out refinance rate we can offer you!

The cash out refinance rate we may be able to offer you depends on your credit score, income, finances, the current mortgage rate market, and other factors. Freedom Mortgage may be able to offer you a rate that is lower – or higher – than the rate you see advertised by other lenders. Ask us today what cash out refinance rate we can offer you.

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Overview of cash out refinancing

A cash out refinance helps you get cash from the equity in your home. You replace your current mortgage with a new mortgage that has a higher amount and get the difference in cash at closing.

For example, say you have a mortgage with a loan balance of $150,000. A cash out refinance might let you get a new mortgage for $170,000 plus $20,000 cash at closing.

You can use this money to consolidate higher interest debts, pay for college educations, or pay for home improvements. You typically have to pay closing costs with cash out refinances and you will need to meet credit, income, and financial requirements to get your application approved.

Get cash from home equity

Consolidate debts

Pay for home renovations

Pay for college educations

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Cash out refinance calculator

The amount of cash you might get from a cash out refinance depends on the value of your home’s equity and the loan-to-value ratio of your refinance. Change the default values to personalize your estimate!

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Cash out refinance calculator assumes your loan-to-value ratio is 80%. This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage.

You might qualify for $50,000

Ask us what cash out refinance rate we can offer you!

The cash out refinance rate we may be able to offer you depends on your credit score, income, finances, the current mortgage rate market, and other factors. Freedom Mortgage may be able to offer you a rate that is lower – or higher – than the rate you see advertised by other lenders. Ask us today what cash out refinance rate we can offer you.

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Choose the cash out refinance that’s right for you!

At Freedom Mortgage, we offer cash out refinancing with conventional and VA loans. Both types of loans let you get cash from your home’s equity. VA loans might let your borrow more money from your home’s equity compared to conventional loans, and might have more flexible credit requirements too. See our loan comparison.

Conventional cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Minimum credit score often 620
  • Mortgage insurance required with home equity less than 20%
  • No funding fee

VA cash out refinances

  • Only qualified veterans, military personnel, and surviving spouses are eligible
  • Maximum loan-to-value ratio often 90%
  • Minimum credit score often 620
  • Mortgage insurance not required
  • Most veterans will pay a funding fee of 2.3% to 3.6% of loan amount
Learn more

FHA cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Mortgage insurance not required
  • No funding fee
Learn more
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What Our Customers Say

Check out the reviews from some of our customers.

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Cash out refinance fees and requirements

To get a cash out refinance, you need a substantial amount of equity in your home which lenders often measure using a loan-to-value ratio (LTV). You also need to meet your lender’s credit, income, and financial standards to get your application approved. Here’s what else you need to know about cash out refinancing.

New application and documentation

You will need to complete a new application and provide income and financial documents like current pay statements and tax returns to apply for a cash out refinance.

New home appraisal

You will probably need a new appraisal to estimate your home’s fair market value. This appraisal will help determine how much home equity you have and how much cash you may be able to borrow against it. A home appraisal typically costs $300 to $400. Learn more

Loan-to-value ratio

Your loan-to-value ratio (LTV) also helps determine how much cash you may be able to borrow against the value of your home’s equity. The maximum LTV for many cash out refinances is 80%. Learn more

New credit check

We will probably check your credit score before we approve your loan. 620 is often the minimum credit score needed for a cash out refinance. A higher credit score might help you get a lower interest rate. Learn more

Closing costs

Closing costs for cash out refinancing can include lender fees, discount points, recording fees, and more. You may need to pay property taxes and homeowners insurance costs too. Forbes estimates cash out refinance closing costs average between 2% and 6% of the loan amount. Learn more

Loan disclosures and closing

Once you submit your application, you will need to review and sign Loan Disclosures. You'll also need to attend the closing of your new mortgage with cash out refinances.Learn more

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Cash out refinance FAQs

The biggest benefit of a cash out refinance is that it can give you money to pay for important investments. Some homeowners use the money from a cash out refinance to pay for college or for home improvements which may increase their house's value.

You can also use cash out refinances to consolidate debts. The interest rate on a mortgage can be lower than rates on other types of loans such as credit cards. When the interest rate on a cash out refinance is significantly lower than the rate you are currently paying on other debt, it may make sense to borrow against the value of your home’s equity to pay down other loans and save on interest payments.

When you have a lot of equity in your home, a cash out refinance might give you access to a substantial amount of money. Cash out refinances can have competitive interest rates compared to other kinds of unsecured loans. Because new mortgages often have terms between 15 and 30 years, cash out refinances can give you a long time to pay the loan back too.

Freedom Mortgage Corporation is not a financial advisor. The ideas outlined above are for informational purposes only, are not intended as investment or financial advice, and should not be construed as such. Consult a financial advisor before making important personal financial decisions.

Keep in mind that you will increase the amount of money you owe on your mortgage with a cash out refinance. This means you may pay more in interest over the life of your new mortgage than you would have paid if you had kept your old mortgage. A cash out refinance may also increase the number of years you are paying back your mortgage, which can also increase the amount of money you pay in interest.

There are requirements you will need to meet to qualify for cash out refinancing and get your application approved. These included:

  • Substantial home equity

    To get a cash out refinance, you need a substantial amount of home equity. You typically build equity in your home by paying down your mortgage principal or when the value of your home increases. To estimate your home’s equity, take the current value of your home and subtract from it the amount of your mortgage principal. For example, if your home is worth $250,000 and you owe $150,000 on your mortgage, you have $100,000 in home equity.

  • An acceptable loan-to-value ratio (LTV)

    Your loan-to-value ratio plays an important role in determining how much money you can borrow with a cash out refinance. Loan-to-value ratio is the percentage you get when your divide your mortgage amount by the value of your home. For example, if your home is currently worth $250,000 and you owe $150,000 on your mortgage then your LTV is 60%. ($150,000 ÷ $250,000 = 0.6 or "60%.") You typically can’t borrow the full amount of the equity in your home with conventional cash out refinances. You can only borrow a portion of it depending on the maximum loan-to-value ratio, which is often 80%. Look at this sample calculation.

    Home Value

    $250,000

    Current mortgage balance

    $150,000

    Sample maximum LTV

    0.8 or "80%"

    Maximum new mortgage balance

    $200,000 ($250,000 x 0.8)

    Maximum cash available

    $50,000 ($200,000 - $150,000)

    Remember you typically have to pay closing costs when you refinance. If you add these costs to your loan amount, they will reduce the amount you will be able to borrow. For example, pretend the loan calculation above comes with $6,000 in closing costs you add to your mortgage principal. These costs will reduce the maximum cash available to $44,000.

  • Good credit and finances

    You typically need a good credit score, income, and finances to get your application for a cash out refinance approved. Having a lower loan-to-value ratio can also help you get approved, because lenders often see homeowners with lower LTVs as desirable customers. Good credit, income, and finances might help you earn a lower interest rate too.

  • Closing costs

    You will most likely need to pay closing costs when you get a cash out refinance. These can average between 2% and 6% of the loan amount according to Forbes. This means you might pay between $4,000 and $12,000 in closing costs if your loan amount is $200,000.

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The Freedom Mortgage Difference

Freedom Mortgage has grown to be the 6th largest mortgage lender in the US. With 30 years of experience helping customers achieve and maintain the dream of homeownership, we are proud today to be the nation’s #1 VA and FHA lender.

Beyond originating loans, we also service mortgages for 1.25+ million customers. Our outstanding service includes our Eagle Eye Pledge, to alert customers to opportunities for lower rates and monthly payments. We are dedicated to meeting our customer’s needs for the life of their loan.