New loan, payment and loan-to-value when you take cash out in a refinance
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 6 Oct 2026.A cash-out refinance replaces the mortgage with a bigger one and pays you the difference. Taking $50,000 out of a $450,000 home with $300,000 owed makes a $350,000 loan, 77.78% of the value. At 6.25% for 30 years the payment is $2,155.01, $42.43 more than the current $2,112.58 at 7.25%. Lenders cap the loan-to-value for cash out, so check yours.
Enter your balance, rate and years left, and the home value.
Enter the cash you want to take out and the new rate and term.
Read the new loan amount, its loan-to-value and the new payment.
Check the extra interest over the loan against what the cash is for.
The Refinance Calculator compares the loan you have with the one a lender is offering. Enter what you still owe, your current rate and the years left, then the new rate, term and closing costs. It shows the new payment, the monthly saving, the month the refinance pays for itself, and the interest on each loan.
Two break-even figures. The rule of thumb divides the closing costs by the monthly saving. The headline figure counts interest instead: the first month in which the interest saved so far equals the closing costs. The two differ when the new term is longer or shorter, or when costs or cash are added to the loan. A 15-year refinance can raise the payment and still break even quickly, because so much less interest is charged.
Cash out. Any cash taken out is added to the new loan. Enter the home value to see the new loan-to-value; lenders set their own limit for cash-out loans.
The rest of the article, and all 6 questions about Refinance Calculator, are on the Refinance Calculator page.
Paying cash keeps the loan smaller and the saving larger. Rolling $6,000 into a $300,000 loan at 6.25% adds $36.94 to the payment and about $7,300 of interest over 30 years. Rolling them in makes sense when cash is short or will earn more elsewhere.
A new loan restarts the term. Paying interest for 30 more years on a loan that had 27 left can outweigh a lower rate, especially near the end of a loan, when most of each payment is principal. Choosing a new term close to the years left gives a fair comparison.
The cash is added to the new loan, so the payment and the interest rise. Taking $50,000 out on a $300,000 balance at 6.25% for 30 years makes the payment $2,155.01, which is $42.43 more than the current $2,112.58 at 7.25%. Lenders limit how much of the home value can be borrowed.
Escrow for property tax and insurance, mortgage insurance, points bought to lower the rate, tax deductions and adjustable rates are not modelled. A prepayment penalty on the current loan should be added to the closing costs. Every rate and cost is an input, so use the figures from a real Loan Estimate.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Refinance Calculator and anybody who knows can answer. No account needed.
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