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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 VA cash out refinances

A VA cash out refinance helps you get cash from the equity in your home. These refinances let you replace your current mortgage with a new VA mortgage for a higher amount, and get the difference in cash when you close your new loan.

For example, pretend your current mortgage balance is $125,000. With a VA cash out refinance, you might be able to get a new VA mortgage for $175,000 plus $50,000 in cash. You can use this cash to pay for home improvements and college educations or to help you consolidate higher interest debts.

Veterans, military personnel, and surviving spouses may be eligible for VA cash out refinances. You will need to meet credit, income, and financial requirements to get your application approved. Freedom Mortgage is the #1 VA lender in the United States according to Inside Mortgage Finance, January to March 2021.

Get cash from home equity

Finance up to 90% of value

Pay for home renovations

Pay for college educations

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How much cash can you get?

The amount of cash you might get from a VA 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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Calculator assumes your loan-to-value ratio is 90%. 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 VA loan advisor at Freedom Mortgage.

You might qualify for $50,000

Ask us what refinance rate we can offer you

The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower - or higher - than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.

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

We offer cash out refinancing with VA and conventional loans at Freedom Mortgage. VA loans might let you borrow more money from your home’s equity compared to conventional loans and might have more flexible credit requirements too. VA cash out refinances have funding fees which conventional cash out refinances do not have. See our loan comparison.

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

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

FHA cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Minimum credit score often 620
  • Mortgage insurance 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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VA cash out refinance fees and requirements

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

New home appraisal

You will probably need a new home appraisal to estimate the current value of your home. This appraisal also helps determine how much home equity you have and how much cash you may be able to borrow against it. An appraisal typically costs $300 to $400. Learn about home appraisals

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 VA cash out refinances is 90%, which may help you access more cash by refinancing. Learn about cash out LTVs

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 VA cash out refinance. A higher credit score might help you get a lower interest rate. Learn about VA loan credit scores

Funding fee

You will likely need to pay a funding fee of 2.3% of the loan amount if this is your first VA cash out refinance. This fee increases to 3.6% after your first cash out refinance. Disabled veterans and surviving spouses may be exempt from paying this fee.Learn about VA funding fees

Closing costs

VA cash out refinance closing costs can average between 3% and 5% of the loan amount according to Veterans United. These closing costs are in addition to the funding fee most veterans will need to pay. Many times you can roll the funding fee and closing costs into your loan amount. Learn about VA closing costs

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 VA mortgage with cash out.Learn about disclosures

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VA cash out refinance FAQs

VA cash out refinances can give you money to pay for college educations or home renovations which might increase the value of your house.

You can also use cash out refinances to consolidate debts. For example, some VA homeowners use the money from a cash out refinance to pay down other debts and “consolidate” them in their monthly mortgage payments. These homeowners might also lower the interest rate on their debts as well because mortgage interest rates are often lower than the 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 consolidate other loans and save on interest payments.

A VA cash out refinance might give you access to a substantial amount of money when you have a lot of equity in your home. Cash out refinances might have competitive interest rates compared to other types of unsecured loans. Because new mortgages often have terms between 15 and 30 years, VA 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.

A VA cash out refinance will increase your mortgage principal. This means you may pay more interest over the life of your new VA loan compared to what you would have paid if you kept your old mortgage. A VA cash out refinance might also increase the number of years you pay back the loan, which can also increase your interest payments.

There are requirements for cash out refinances you will need to meet to qualify for a new VA mortgage and get your application approved. These include:

  • Home equity

    You need a reasonable amount of home equity to get a VA cash out refinance. You can build equity by paying down your mortgage principal or when your home value rises. You can estimate your home’s equity by taking the current value of your home and subtracting your mortgage principal. For example, if your home is worth $250,000 and you owe $175,000 on your mortgage, you have $75,000 in home equity.

  • Loan-to-value ratio

    Your loan-to-value ratio affects how much money you may be able to borrow with a VA cash out refinance. Loan-to-value ratio is the percentage you get when you divide your mortgage amount by your home’s value. For example, if your home is worth $250,000 and you owe $175,000 on your mortgage then your LTV is 70%. (That is, $175,000 ÷ $250,000 = 0.7 or "70%.")

    One advantage of VA cash out refinances is you may qualify for a maximum LTV of 90%, which means you can borrow almost the full value of equity in your home. Look at this sample calculation.

    Home Value

    $250,000

    Current mortgage balance

    $175,000

    Sample maximum LTV

    0.9 or "90%"

    Maximum new mortgage balance

    $225,000 ($250,000 x 0.9)

    Maximum cash available

    $50,000 ($225,000 - $175,000)

    You usually have to pay a funding fee and closing costs when you refinance. If you add these costs to your loan amount, they will reduce how much you can borrow.

  • Credit and finances

    You typically need a reasonably 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 VA homeowners with lower LTVs as better customers. Good credit, income, and finances might help you earn a lower interest rate too.

  • Funding fee

    Most homeowners need to pay a funding fee when they get a VA cash out refinance. This funding fee is 2.3% of the loan amount for their first cash out refinance and 3.6% for each cash out refinance after the first. Disabled veterans and surviving spouses may be exempt from paying this fee.

  • Closing costs

    You will probably have to pay closing costs with a VA cash out refinance. These might average between 3% and 5% of the loan amount according to Veterans United. These closing costs are in addition to the funding fee.

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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 1.50+ 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.