A cash-out refinance replaces your existing mortgage with a new loan for more than you currently owe, giving you the difference as cash at closing. Homeowners across the country use this strategy to consolidate debt, fund renovations, cover major expenses, or invest — all while potentially securing a competitive interest rate on their entire loan balance.
At IH Lending, we help borrowers evaluate whether a cash-out refinance aligns with their financial goals and walk them through every step of the process — from application to closing.
When you apply for a cash-out refinance, your lender appraises your home to determine its current market value. Based on that value, your remaining mortgage balance, and program guidelines, you can borrow a new loan amount that exceeds what you owe — and receive the difference as a lump-sum payment at closing.
Most conventional cash-out programs allow you to borrow up to 80% of your home’s appraised value, though some government-backed and non-QM options may offer different limits. The funds are yours to use however you choose — there are generally no restrictions on how the cash can be applied.
Qualification criteria vary by program, but most cash-out refinance options share a set of baseline requirements. Understanding these early in the process helps set realistic expectations and speeds up your application timeline.
Homeowners looking to access equity have several paths available. A cash-out refinance replaces your existing loan entirely, which can be advantageous if you’re also looking to change your rate or term. By contrast, a home equity loan adds a second lien with a fixed rate and separate payment, while a HELOC provides a revolving credit line with variable rates.
The right choice depends on your current mortgage rate, how much equity you need to access, and whether you prefer a lump sum or flexible draw schedule. Our team can help you compare scenarios side by side.
The amount depends on your home’s current appraised value and your existing mortgage balance. Most conventional programs allow you to borrow up to 80% of your home’s value. For example, if your home appraises at $400,000 and you owe $250,000, you could potentially access up to $70,000 in cash at closing.
Cash-out refinance rates are typically slightly higher than standard rate-and-term refinance rates. However, if your current mortgage was originated during a period of higher rates, you may still be able to lower your rate while accessing cash. Your loan officer will run a side-by-side comparison so you can see the full picture.
Most cash-out refinances close within 30 to 45 days from application, depending on the complexity of the file and how quickly documentation is provided. Having your financial documents organized before you apply can help accelerate the timeline.
Yes. Both conventional and non-QM programs offer cash-out options for investment properties, though the requirements — including equity thresholds and credit minimums — are generally stricter than for primary residences. DSCR loan programs may also be available for investors who qualify based on rental income rather than personal income.
Most conventional lenders require a six-month seasoning period — meaning you must have held your current mortgage for at least six months. If you purchased the property recently, certain exceptions may apply depending on the program. Your loan officer can advise based on your specific timeline.
Whether you want to consolidate debt, fund a renovation, or simply understand what’s available to you, our team is here to help. Get in touch for a no-obligation consultation, or start your pre-qualification to see what you may be eligible for.
