Cash-Out Refinance

Turn Equity into Cash with a Cash-Out Refinancing

A cash-out refinance is a powerful financial tool that lets you convert your home equity into usable cash. By replacing your current mortgage with a larger loan, you can keep the difference in cash and use it however you need—whether for home improvements, debt consolidation, education costs, or major life expenses.



For many homeowners, especially in states like Florida where property values have risen, a cash-out refinance offers a low-interest way to access substantial funds without taking on unsecured debt.

How It Works – An Example

Here’s how a cash-out refinance works:


Let’s say your home is worth $300,000, and you owe $200,000 on your current mortgage. If you refinance at 80% loan-to-value (LTV), you could qualify for a new loan of $240,000. You’d pay off your existing $200,000 balance and pocket the remaining $40,000 (minus closing costs) in cash.



This approach gives you a single, fixed-rate mortgage and immediate access to funds. Eligible VA borrowers may even qualify for up to 100% LTV through a VA cash-out refinance—a great option for veterans needing more flexibility.

Cash-Out vs. HELOC or Home Equity Loan

When comparing your options, it’s important to understand the differences:



  • Cash-Out Refinance – Replaces your current mortgage with a new, larger one. Offers a fixed rate, single payment, and cash at closing.
  • HELOC (Home Equity Line of Credit) – A separate line of credit with variable interest that you borrow from as needed.
  • Home Equity Loan – A second, fixed-rate loan based on your equity, with a separate monthly payment.

Cash-out refinances often come with lower interest rates than HELOCs or personal loans. Plus, if you use the funds for home improvements, some of the mortgage interest may be tax-deductible (consult your tax advisor for details).

Cash-Out Refinance Requirements

To qualify for a cash-out refi, you’ll typically need:



  • At least 20% equity remaining after the refinance (max 80% LTV, though VA may allow up to 100%)
  • A satisfactory credit score (typically 620+ or higher for best rates)
  • Debt-to-income ratio that meets lending guidelines
  • A home appraisal to confirm your home’s current market value

Homeowners in Florida often use cash-out refinancing to fund storm repairs, renovations, or even purchase investment properties—thanks to the area’s strong home appreciation trends.

Is a Cash-Out Refi Right for You?

A cash-out refinance may be a smart choice if:



  • You need a large lump sum and want lower interest rates than credit cards or personal loans
  • You’re okay with restarting your mortgage term or adjusting your monthly payments
  • You’re planning to use the cash for long-term investments, like remodeling or debt reduction

It might not be the best option if your current mortgage rate is significantly lower than today’s rates or if you only need a small amount—in that case, a HELOC might be more cost-effective. We’ll help you evaluate what’s best for your goals.

Is a Cash-Out Refi Right for You?

Getting started is easy. At CTC Mortgage, we’ll:



  • Review your home value and current mortgage
  • Discuss your financial needs and goals
  • Show you how much cash you could access
  • Explain your new monthly payment and loan terms

Ready to unlock your home’s potential? Request a free cash-out refinance quote today and find out how much equity you can put to work.

Explore Other Loan Options

Looking for a different type of refinance or loan? Compare your options:

Ready to Get Started?

Contact Us for a free consultation or refinance quote today.

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Faqs– Cash-Out Refinance

Answers to common mortgage questions

  • How much can I get with a cash-out refinance?

    Most lenders allow you to borrow up to 80% of your home’s appraised value, minus your existing mortgage balance. For example, if your home is worth $400,000 and you owe $250,000, you may be able to refinance for $320,000 and take out $70,000 in cash (before closing costs). Some programs, like VA cash-out refinance, allow higher LTVs—up to 90% or even 100% for qualified borrowers.

  • What can I use the cash for?

    You can use the proceeds from a cash-out refinance for almost any purpose, including home renovations, paying off high-interest debt, funding education, or starting a business. Many homeowners in Florida use the funds to upgrade their properties or repair storm damage. Since the cash is secured by your home, the rates are typically lower than unsecured personal loans.

  • Will my mortgage payment go up?

    It’s possible. Since you’re borrowing more than your current balance, your monthly mortgage payment may increase, depending on the loan term and interest rate. However, in some cases—especially if you refinance at a lower rate or extend your term—your payment could remain the same or even decrease. We’ll walk you through the numbers before you commit.

  • What’s the difference between a cash-out refinance and a HELOC?

    A cash-out refinance replaces your current mortgage with a new, single loan and gives you the cash upfront. A HELOC is a separate line of credit, often with variable rates and a draw period followed by repayment. Cash-out refis offer predictable payments and can be ideal if you need a large, one-time lump sum. HELOCs might be better for smaller, ongoing expenses.

  • How long does a cash-out refinance take?

    The process usually takes 3–5 weeks, depending on appraisal timing, underwriting, and how quickly you provide documentation. At CTC Mortgage, we aim for fast, smooth closings. We’ll handle everything from ordering the appraisal to coordinating the payoff of your old loan, so you can focus on how to use your funds.