start portlet menu bar

Web Content Viewer

end portlet menu bar

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.

start portlet menu bar

Web Content Viewer

end portlet menu bar
start portlet menu bar

Web Content Viewer

end portlet menu bar

Overview

An FHA cash out refinance allows you to tap into the value of your home's equity to get cash for important expenses. With this type of refinancing, you'll replace your current mortgage with a new loan for a higher amount. The difference between the two mortgages is what you'll receive in cash at closing. For example, if you have a mortgage with a loan balance of $200,000, you might be able to get a new FHA loan for $250,000. This would give you $50,000 in cash at closing.

You can use the money to pay for home improvements and college educations, or to pay down high-interest debts. FHA cash out refinances require a new loan application and you'll need to meet the requirements to get your refinance approved.

Get cash from home equity

Consolidate debts

Pay for home renovations

Pay for college educations

start portlet menu bar

Web Content Viewer

end portlet menu bar

How much cash can you get?

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!

All fields are required.

$
$
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 about our FHA cash out refinance rates

At Freedom Mortgage, we want to help you make the most of your home's equity with competitive rates for FHA cash out refinances. Your credit score, finances, current market and other factors can affect the rate we may be able to offer you. We're happy to answer your questions and see if you qualify!

start portlet menu bar

Web Content Viewer

end portlet menu bar

Is an FHA cash out refinance right for you?

FHA cash out refinancing can provide you with the financial flexibility to reinvest your home's equity in other parts of your life.

FHA cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Mortgage insurance required
  • No funding fee

Conventional cash out refinances

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

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
start portlet menu bar

Web Content Viewer

end portlet menu bar

What Our Customers Say

Check out the reviews from some of our customers.

start portlet menu bar

Web Content Viewer

end portlet menu bar

FHA cash out refinance requirements

In order to be eligible for an FHA cash out refinance, you'll need to have a significant amount of home equity. Lenders will typically measure your home equity using a loan-to-value ratio (LTV). Your application will only be approved if you meet the lender's credit, income, and financial standards. Take a look at the other factors that go into FHA cash out refinancing.

New application and documentation

You'll need to submit proof of income, tax returns, and other documents that provide your financial history.

New home appraisal

Your home's fair market value may have changed since you bought it. Lenders typically require a new home appraisal to determine how much home equity you have. Home appraisals can cost around $300.Learn more

Loan-to-value ratio

The maximum loan-to-value-ratio (LTV) for FHA cash out refinances is often 80%. Your LTV helps lenders decide if you qualify for cash out refinancing and how much cash you may be able to borrow against your home's equity. Learn more

New credit check

You should expect a credit check as a part of the approval process. Higher credit scores might get you a lower interest rate. Learn more

Closing costs

FHA cash out refinance closing costs can vary but will always include the Upfront Mortgage Insurance Premium (UFMIIP). You may also need to pay lender fees, mortgage points, or other costs. Learn more

Loan disclosures and closing

After you apply, you'll also need to sign Disclosures before you close. We'll review your closing steps with you when the time comes so you're prepared.Learn more

start portlet menu bar

Web Content Viewer

end portlet menu bar

Frequently Asked Questions

Substantial equity in your home might mean that an FHA cash out refinance can give you more money in your pocket for big expenses.

Some homeowners choose to use their money for home renovations. This can increase the home's value if you decide to resell your home in the future. Other homeowners use the money to pay for college tuition.

An FHA cash out refinance can also help you consolidate your debt. If the interest rate on your credit card payment is much higher than your mortgage rate, for example, it can sometimes be beneficial to refinance and use cash from your home’s equity to pay down debts with higher interest rates.

Using money from your home’s equity to pay for education, pay down your debt, or invest back in your home can pay off in the long run.

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.

It’s good to remember that you will increase what you owe on your mortgage with an FHA cash out refinance. You may pay more in interest over the span of your refinanced mortgage than you would have with your original mortgage. There are also requirements you need to meet to qualify for an FHA cash out refinance.

  1. 1. Proof of Payment + Financial History

     

    You will need to complete a new application demonstrating your income and financial history. A cash out refinance application will also require proof of mortgage payments for the previous 12 months. We will typically check your credit score as well.

  2.  

    2. Max LTV

     

    Your loan-to-value (LTV) ratio determines what you can borrow against your home’s equity. LTV is calculated by dividing your mortgage amount by the value of your home. For example, if your home is worth $275,000 and you owe $165,000 on your existing mortgage, then your LTV is 60% ($165,000 ÷ $275,000 = .6 or 60%). The max LTV for FHA cash out refinances is often 80%. Here’s a sample calculation of what you’d be able to borrow if your LTV is 80%.

    Home Value

    $275,000

    Current mortgage balance

    $165,000

    Sample maximum LTV

    0.8 or "80%"

    Maximum new mortgage balance

    $220,000 ($275,000 x 0.8)

    Maximum cash available

    $55,000 ($220,000 - $165,000)

    Your maximum cash available in this scenario does not account for closing costs. When added to your loan amount, you will have less cash available to you. For example, if the above example comes with $8,000 in closing costs, this reduces the maximum cash available to $47,000.

  3.  

    3. Principal residence

     

    In order to receive an FHA cash out refinance, the home you are looking to refinance must be your primary residence. It will have to be considered your primary residence for at least the 12 months prior to your FHA cash out refinance application.

  4.  

    4. Appraisal & Home Equity

     

    Your home’s value may have changed since you bought it based on the market and surrounding properties. An appraisal will help determine how much your home is currently worth and how much equity you have. Lenders use this information to decide whether you qualify for a loan and what mortgage amount they might approve.

  5.  

    5. Closing costs

     

    You will still need to pay closing costs on a refinance. Closing costs for an FHA cash out refinance will include the Upfront Mortgage Insurance Premium (UFMIP). In total, these closing costs will typically average between 3% and 4% according to the U.S. Department of Housing and Urban Development (HUD). If your new loan amount is $220,000, you might pay between $6,600 and $8,800 in closing costs.

start portlet menu bar

Web Content Viewer

end portlet menu bar

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.