Cash-Out Refinance

Cash in on your home equity

Access cash to consolidate high-interest debt, make home renovations, or pay other expenses. Replace your current mortgage with a new loan that covers the remaining balance and leverages equity.

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home equity loan

How to win with Home Field Lending

Let’s see if a cash-out refinance loan is right for you with three simple steps.
1
Find out if you pre-qualify for a refinance loan by sharing your needs.
2
Get approved through our straightforward application process.
3
Receive the financing you need to move toward your goals.

When cash-out refinance loans can help

You’ve made a consistent investment in your home. You don’t have to sell your home for that investment to pay off. Instead, you can leverage your equity to unlock cash.

A cash-out refinance loan replaces your current mortgage with a new, larger loan that covers both the balance of your current mortgage and the lump sum of cash you want to borrow — based on how much home equity you have.

Equity builds through factors like rising home values and a decreasing mortgage balance. You might also have higher credit and income than when you qualified for your current mortgage, which could improve your terms.

With the right circumstances, you may even be able to lower your monthly mortgage payment, making the loan affordable now and into the future, while also accessing cash to cover current expenses.

 

Top three benefits of a cash-out refinance loan

Access cash to cover other expenses

Tap into the home equity you’ve built and use cash to reinvest in your home or cover other costs

Lower monthly payments with new term length

Choose a longer term length to extend your loan and lower your monthly payments for affordability

Consolidate high-interest debt to save money

Use cash to pay off other debt with higher interest rates to save money monthly and over time

Make your home equity work for you

Many homeowners are choosing to tap into the investment they’ve made in their property to access cash that will cover other costs.

If the value of your home has risen and you’ve been paying down your current mortgage, you’ve likely built equity that you can now leverage for other expenses like home improvements, debt consolidation, and more.

Does a cash-out refinance loan sound like the right option for you?

  • Leverage your home equity
  • Access cash with a new mortgage as a lump sum at closing
  • Use the cash as needed without restrictions
  • Extend your term length for lower monthly payments
  • Choose fixed or adjustable rate options
  • Potentially lower your interest rate
  • Access cash that isn’t taxed as income
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Cash-Out Refinance Loan FAQs

Financing property is an important step in reaching your investment goals. It’s normal to have questions. We’ve compiled answers to the frequently asked ones, but don’t hesitate to ask more.

How do I know if I’m eligible for a cash-out refinance loan?

To decide if a cash-out refinance loan is right for you, and whether you can qualify for affordable terms, you’ll want to consider these requirements.

A credit score of 620 or higher is best. The higher your score, the better your terms. You’ll need to provide documentation of consistent, ongoing income with a debt-to-income (DTI) ratio at or below 50% along with employment verification.

You’ll also need to have enough equity in your home to be able to borrow cash from that equity. Often a loan-to-value ratio of 80% or less is best, meaning you have at least 20% equity in your home.

How does a cash-out refinance loan compare to a rate-and-term refinance, FHA streamline, or VA IRRRL refinance?

Between these loan options, a cash-out refinance loan is the only option that allows you to access a lump sum of cash at closing. Conventional rate-and-term refinance, FHA streamline, and VA IRRRL are each intended to improve your terms, either making your monthly mortgage payments lower or helping you pay down your mortgage faster.

To improve terms, you can refinance to a conventional refinance loan from other loan types, including from FHA or VA purchase loans. An FHA streamline refinance only applies to refinancing FHA purchase loans and a VA IRRRL only applies to VA purchase loans. These types of refinance loans are helpful in that they allow for a streamlined process to make lowering interest and monthly payments simpler.

What can I use the cash for from a cash-out refinance?

There are no restrictions on how you use the cash that you access as a lump sum at the closing of a cash-out refinance loan. Many homeowners use the cash from their equity to reinvest in their home, using it to pay for renovations.

Others use the cash to consolidate high-interest debt as a mortgage loan often offers lower interest rates than credit cards and personal loans. This allows you to lower your monthly bills by paying off credit cards, which will also decrease the amount you pay toward interest.

Outside of the most common scenarios, you can also use the cash for things like medical expenses, college tuition, to purchase a car, etc.

Keep in mind that you’re borrowing this money from your home so you want to use it responsibly and ensure that you can continue making your mortgage payments. Your home is the collateral for the loan, so you risk losing your home if you can’t make the loan payments.

See if you qualify

Pre-qualify now to find out whether a cash-out refinance loan will work for you. We’ve got your back through the approval process so that you can receive funding and move forward with your goals.