If you’ve owned your home for a few years, chances are it’s worth more today than when you bought it. That increase in value — your home equity — isn’t just sitting there. With a cash-out refinance loan, you can turn it into real, usable funds to improve your finances, your property, or your future.
What Is a Cash-Out Refinance?
A cash-out refinance lets you replace your existing mortgage with a new one that’s larger than what you currently owe. The difference between the two is paid out to you in cash, and can be used however you choose.
Unlike a home equity loan or line of credit, this is a full refinance — which could also give you access to a lower interest rate or more favorable loan terms.
Common Reasons to Use a Cash-Out Refinance
Homeowners use cash-out refinances for many practical purposes:
???? Home improvements – Upgrade kitchens, bathrooms, or even add square footage
???? Paying off high-interest debt – Lower your monthly bills and simplify payments
???? Covering education costs – Fund college without taking on expensive student loans
???? Purchasing an investment property – Grow your wealth with your current home equity
???? Major life purchases – Fund large expenses without high-interest consumer loans
How Much Can You Borrow?
Most lenders will allow you to cash out up to 80% of your home’s current value, depending on your credit profile and the property's location. For example:
If your home is worth $500,000 and your mortgage balance is $300,000, you may be able to refinance up to $400,000 — giving you access to $100,000 in cash (less closing costs).
Is a Cash-Out Refinance a Good Fit?
It could be, if you:
Have built up solid home equity
Plan to stay in your home long enough to benefit from the refinance
Can qualify for a new mortgage with favorable terms
Want to use the cash for value-added or strategic financial goals
Start With the Right Lender
At Mortgage Capital, we specialize in helping homeowners make informed decisions about refinancing. Our team provides guidance, competitive rates, and a smooth process from start to finish.
Want to see what’s possible for you? Visit our Cash-Out Refinance Loan page to explore your options and get personalized support.
Your home has value. Let’s put it to work.