Your equity is working capital. Use it.

A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan and your old balance — minus closing costs — is paid to you in cash at closing. You can use those funds for virtually any purpose: home improvements, debt consolidation, investments, or large expenses.

On conventional loans, most programs allow you to borrow up to 80% of your home's current appraised value (LTV). VA cash-out refinances allow up to 90% LTV for eligible veterans. FHA cash-out goes to 80% LTV. The exact amount depends on your loan type, credit profile, and property. We'll run the numbers for your specific situation.

A 620 FICO is the minimum for most conventional cash-out programs. For the best rates and highest LTV allowances, 680–720+ is preferred. FHA and VA programs have slightly more flexible credit guidelines. We'll match you to the right product based on your credit profile.

A cash-out refinance typically carries a slightly higher rate than a rate-and-term refinance (usually 0.25–0.625% higher) because of the additional risk the lender takes on. Whether the new rate is higher or lower than your current rate depends on when you originally financed. We'll model the full payment comparison side by side before you decide.

Most cash-out refinances close in 21–30 days from application. The main variables are appraisal scheduling (often 1–2 weeks) and title work. We prep your file in parallel and push all parties to minimize idle time. After closing, federal law requires a 3-business-day right of rescission on primary residences before funds are disbursed.

Generally no — cash received from a refinance is not considered income by the IRS because it's borrowed money, not a gain. However, if you use the funds for investment purposes, interest deductibility rules may differ. Always verify with your CPA for your specific situation; this is not tax advice.

Yes. Investment property cash-out refinances are available, typically up to 75% LTV on conventional programs. Rates and reserve requirements are stricter than for primary residences. DSCR (debt service coverage ratio) loans are also an option for investors who want to qualify on rental income alone.

A cash-out refinance replaces your entire first mortgage with a new loan, giving you a lump sum. A HELOC is a second lien on top of your existing mortgage — a revolving line of credit you draw from as needed. Cash-out refi is typically lower rate but touches your first mortgage. A HELOC leaves your first mortgage untouched. We can model both and help you decide which fits your goals.