Calculation Logic
This calculator determines how much equity you can access through a cash-out refinance. It computes your available equity (home value minus current balance), then applies your lender's maximum LTV limit to find the maximum new loan amount. The cash you can take out is the difference between that max loan and your current balance. Your new monthly payment is calculated using the standard amortization formula.
How to Use
- Enter your current home value and remaining loan balance.
- Set the maximum LTV your lender allows (commonly 80% for conventional loans).
- Input your new rate and desired term.
- Enter the amount of cash you want to pull out.
- Click Calculate to see available equity, max cash-out, new loan amount, and payment change.
Pro Tips
- Stay under 80% LTV if possible: Crossing above 80% usually triggers PMI, adding a monthly cost.
- Use Compare Scenarios: Test different cash amounts to see how each affects your payment.
- Consider a home equity loan: For smaller amounts, a HELOC might have lower total costs. Read our article on the topic.