Cash-Out Refinance Calculator: Compare Costs

Cash-Out Refinance Calculator by Quicken Loans

The Quicken Loans cash-out refinance calculator puts your existing mortgage and credit card payments side by side with a single refinanced loan. That way, you can judge the trade-off in dollars instead of guesswork. A cash-out refinance borrows against the equity you’ve built in your home, so it helps to understand how to use home equity wisely before you commit. The calculator shows how swapping your current debts for one new, larger mortgage changes your monthly budget and your long-term costs.

This cash-out refinance calculator focuses on one common use for that cash: paying off high-interest credit card debt. It compares two things:

Monthly payment: Your combined mortgage and credit card payment, shown next to the new loan payment, plus the monthly difference.
Interest over time: The total interest you’d pay on your current debts versus the new loan, plus the lifetime difference. Since the two loans can be different sizes, interest is a fairer yardstick than total dollars paid.

Treat the results as an estimate. The Quicken Loans cash-out refinance calculator doesn’t include closing costs, and actual rates, terms, and fees vary by lender. If you’re comparing other ways to borrow against an asset, learn how collateral loans work.

How to use the Cash-Out Refinance Calculator

To use this cash-out refinance calculator, enter three sets of numbers:

Your mortgage: balance, interest rate, years remaining, and monthly payment.
Your credit card: balance, APR, and minimum payment.
Your new loan: rate, term, and amount.

The calculator then builds a month-by-month schedule for each path. It reports your monthly payment, total interest, and payoff time. Because the tool assumes no closing costs, think of the results as a best-case view. Add lender fees to your own math before you decide.

How to read cash-out refinance calculator results

To read cash-out refinance calculator results, compare the two scenarios the tool builds: your current mortgage plus credit card, and one new loan. Focus on three headline numbers: monthly savings, lifetime savings, and break-even months.

Why use a cash-out refinance for debt consolidation?

A cash-out refinance can help with debt consolidation. It replaces your current mortgage with a larger loan, and you use the extra cash to pay down credit cards, personal loans, or other balances. The main reason to use a cash-out refinance for debt consolidation is simple: one predictable payment instead of several due dates. Mortgage rates are often much lower than credit card rates, so the interest on the debt you move could drop sharply. If you’re weighing your options, it helps to understand how to consolidate credit card debt before choosing a method.

Here’s why clients choose a cash-out refinance for debt consolidation:

One payment instead of many: Replacing multiple minimum payments with one monthly mortgage payment makes budgeting simpler. Still, it’s smart to weigh the pros and cons of debt consolidation before choosing this approach.
More room in your budget: Lower interest on the consolidated balance can free up monthly cash flow.
The trade-offs deserve equal attention when using a mortgage refinance to pay down debt:
Your home becomes collateral. You turn unsecured debt into debt secured by your home, so missed payments put your house at risk, not just your credit.
Closing costs apply. They reduce how much you actually save.
Your equity sets the limit. Lenders cap how much of your home’s value you can borrow against, so your available equity determines how much debt you can clear.

Comparing offers from several lenders helps you confirm the savings are real.

Ready to Refinance?

Find a refinance lender that will work with your unique financial situation.

Use cash-out refinance to pay down credit card debt

You can use a cash-out refinance to consolidate credit card debt by replacing your current mortgage with a larger one. Then you put the extra cash from closing toward your card balances. The new loan pays off your existing mortgage first, and you receive the difference as cash. Before you decide, consider whether a home equity loan could be right for you as another way to tap your home’s value.

The appeal is the trade itself: you swap high-interest, unsecured card debt for a mortgage, which is secured by your home. It’s one way to use home equity, but it only makes sense when the new mortgage rate is lower than your card rates. Confirm that with real quotes for your situation instead of assuming it.

Using a cash-out refinance to consolidate credit card debt carries risks that deserve equal weight:

Your home is on the line. Missed payments on the new mortgage put your house at risk, not just your credit.
Closing costs add up. Total them and see whether your savings on card interest outweigh them.

Once your cards are paid off, avoid running them up again. Otherwise, you’ll be left with both a bigger mortgage and new debt. If you’re still weighing a second mortgage vs. refinance, compare how each option affects your balance before you decide.

Refinance calculator FAQ

Can you use a Cash-Out Refinance on an investment property?

A cash out refinance on an investment property replaces your current mortgage with a larger loan and pays you the difference in cash. It draws on the equity you’ve built in a rental property or other non-owner-occupied home.
A cash-out refinance on an investment property has a lower loan-to-value (LTV) cap than one on a primary residence. Fannie Mae’s Eligibility Matrix sets these maximum LTV ratios for a cash-out refinance on a conventional loan underwritten through its Desktop Underwriter system:

Primary residence: 80% for one unit, or 75% for two to four units.
Second home: 75% for one unit.
Investment property: 75% for one unit, or 70% for two to four units.

For example, on a cash out refinance for a one-unit rental property worth $400,000, you could borrow up to $300,000 in total. That money pays off your existing mortgage balance, and you keep the remainder after closing costs. Some loan types and properties have exceptions to these limits.
Rates, reserve requirements, and terms for a cash-out refi on an investment property vary by lender. Compare cash out refinance investment property offers before you commit.

How to get the lowest rates for refinancing?

The lowest rates for refinancing go to clients whose credit profile, home equity, and loan choice make them look like a lower risk to lenders. No single lender has the best refinance rates for everyone. Each lender prices a client’s profile differently, so the lowest interest rate to refinance depends on who’s quoting it.
The best way to find the lowest rates for refinancing is to request Loan Estimates from several lenders on the same day. Then compare the interest rate, annual percentage rate (APR), and closing costs side by side. A low rate only helps if the fees don’t erase the savings, so weigh both before you commit.

How to find a low cost mortgage refinance?

A low cost mortgage refinance is a new loan that replaces your current mortgage while keeping your interest rate and upfront closing costs as low as you can negotiate. Here’s how to find one:
Request Loan Estimates from several lenders.
Compare the interest rate, lender fees, and total closing costs line by line.
Find your break-even point by dividing closing costs by your monthly savings. That’s the number of months until the refinance pays for itself.
Refinance only if you expect to stay in the home longer than that.
A low cost mortgage refinance looks different for every client because rates, fees, and terms vary by lender. The cheapest option is the offer with the best overall mix for your situation.