Cash-Out Refinance Calculator
A cash-out refinance is capped by a loan-to-value ceiling, and the closing costs come out of what is left. On a $450,000 home with $280,000 owed, an 80% ceiling reaches $80,000 before costs. Take 2% off for closing and $72,800 actually arrives, on a new loan of $360,000.
This estimate does not include property taxes, homeowners insurance, mortgage insurance or HOA dues. Your actual payment obligation will be greater.
These figures are the arithmetic of the assumptions you entered. BEDRWay is not a lender, does not quote rates, and this is not a loan offer, a pre-qualification or a commitment to lend. A licensed loan officer runs your actual numbers.
On this page
How the maths works
gross cash = (home value × ceiling) − balance
cash you receive = gross cash − closing costs
The second line is the one this page exists for. In a survey of the major lenders and comparison sites, not one nets the closing costs out of the figure it prints. At least one has a hidden disclaimer admitting the visible number ignores them while the article directly beside it states the opposite formula.
The money comes out either way. It is either taken from the cash at the table or added to the balance, and both of those are worse than knowing about it in advance.
The ceiling is not one number
Every value between 75% and 100% is currently live somewhere in the market, which is why it is a slider here rather than a constant:
- 75% at one national bank, for Florida specifically.
- 80% at the same bank in the other forty-nine states, and the common conventional ceiling.
- 85% at another large lender outside Texas, where its own limit is 80%.
- 80, 85 and 90% as credit-score tiers at a third.
- 100% for some VA cash-out refinances.
A calculator that hard-codes one of these is wrong for most of the people reading it. Two traps are worth naming as well: one large bank's prominent 85% is a minimum initial disbursement rather than a ceiling and sits a few hundred bytes from its real 80%, and another describes its limit as a percentage of your equity when its own Texas clause correctly says of the home's value. Those are not the same number.
It replaces the whole loan
A cash-out refinance pays off your existing mortgage and writes a new, larger one. The rate on your entire balance resets, not just on the part you are taking out. If you are sitting on a rate well below what is available today, that is expensive in a way the cash figure does not show.
A home equity loan or a HELOC leaves the first mortgage where it is and adds a second lien behind it. The rate on the second is usually higher, but it applies only to the amount borrowed. Which is cheaper depends almost entirely on the gap between your current rate and today's, which is a two-minute conversation with a loan officer.
What the money is for
Anything, and that is the risk rather than the benefit. Debt that was unsecured becomes debt the house stands behind, repaid over decades instead of years. Consolidating a card at 24% into a mortgage at a fraction of that is real arithmetic. Doing it and then running the card back up is the outcome that ends badly, and it is common enough that every loan officer has seen it.
What each lender ceiling reaches
| Home worth | Ceiling 75% | Ceiling 80% | Ceiling 85% |
|---|---|---|---|
| $350,000 | $0 | $0 | $11,550 |
| $450,000 | $50,750 | $72,800 | $94,850 |
| $550,000 | $124,250 | $151,200 | $178,150 |
| $650,000 | $197,750 | $229,600 | $261,450 |
| $750,000 | $271,250 | $308,000 | $344,750 |
This estimate does not include property taxes, homeowners insurance, mortgage insurance or HOA dues. Your actual payment obligation will be greater.
These figures are the arithmetic of the assumptions you entered. BEDRWay is not a lender, does not quote rates, and this is not a loan offer, a pre-qualification or a commitment to lend. A licensed loan officer runs your actual numbers.
Frequently asked questions
Why is the cash lower here than on other calculators?
Because closing costs are taken out of it. Every calculator in a survey of the major lenders and comparison sites prints the gross figure, and at least one has a hidden disclaimer admitting the visible number ignores costs while the article beside it states the opposite formula. The money comes out either way; this page shows it coming out.
What is the real ceiling?
It depends on the lender, the state, the property type and your credit, and every value from 75% to 100% is currently live somewhere in the market. That is why it is a slider here rather than a constant. A loan officer can tell you which one applies to you in about a minute.
Does this replace my current mortgage?
Yes, entirely. A cash-out refinance pays off the existing loan and writes a new, larger one, which means the rate on your whole balance resets. If your current rate is well below what is available now, a second lien such as a home equity loan or a HELOC often costs less overall.
What can the money be used for?
Anything, and that is the risk rather than the benefit. It is secured by the house, so debt that was unsecured becomes debt the home stands behind, and it is repaid over decades rather than years. That trade can be sensible; it should be a decision rather than a default.
Sources
- Freddie Mac Primary Mortgage Market Survey, national weekly average mortgage rates, retrieved 2026-08-24
- Fannie Mae Selling Guide, cash-out refinance loan-to-value limits, retrieved 2026-08-24
Last updated: August 25, 2026