Replace your current mortgage with a larger one and take the difference in cash. Estimate how much equity you could access and what the new payment looks like.
Max loan to value depends on the program, occupancy and credit. 80% is common for conventional and FHA. VA guidelines can go higher, and each lender sets its own cap.
Estimated cash to you
$0
Estimate only. Closing costs are assumed as a percent of the new loan and come out of it. Taxes, insurance, mortgage insurance and any VA funding fee are not included. Texas cash-out loans follow state rules and are capped at 80% loan to value.
Three ways to use equity. The right one depends on your current rate and how you plan to use the funds.
| Feature | Cash-out refinance | HELOC | Home equity loan |
|---|---|---|---|
| How it works | Replaces your mortgage with a new, larger loan | A revolving line behind your first mortgage | A fixed second loan behind your first mortgage |
| First mortgage | Replaced | Stays in place | Stays in place |
| Rate | Usually fixed for the loan term | Usually variable | Usually fixed |
| Funds | One lump sum at closing | Draw as needed during the draw period | One lump sum at closing |
| Often fits | Your current rate is near or above today's rate, or you want a single payment | Ongoing or uncertain costs, such as phased projects | One known expense with a fixed payment |
Typical limits
Ask Duane which apply to your situation.
Up to the program's loan to value cap, minus your current balance and closing costs. The estimator above shows a sample.
Cash-out proceeds are borrowed money, not income. Whether the interest is deductible depends on how you use the funds, so check with a tax advisor.
Cash-out loans often price a bit above a rate and term refinance for the same borrower. Duane can show you both.
Some programs allow it, usually with lower loan to value limits and a higher rate.
Often several weeks, depending on the appraisal, title work and how quickly documents arrive.
Applying triggers a credit check and the new loan replaces the old one. A small, short dip is common.
Eligible veterans can often access more equity than other programs allow. A funding fee usually applies unless you are exempt.
Cash-out loans on a Texas homestead follow state rules, including an 80% loan to value cap.
Duane Buziak, NMLS #1110647. Licensed in VA, FL, TN, GA, NC, SC, MD, DC, WV, TX and KY. Brokered through Coast2Coast Mortgage, NMLS #376205. Verify licenses at nmlsconsumeraccess.org. For illustration only. Not a loan offer, commitment or rate quote. Equal Housing Opportunity.