Where this option fits
Your full mortgage is replaced, so compare the new first-mortgage rate and costs—not just the amount of cash received.
Price the replacement mortgage as a whole
The comparison includes your current payoff plus new cash and any financed charges. Evaluate the rate and term on the entire new balance. Compare a separate equity loan or line when retaining the existing first mortgage may help.
What we will review
- Current payoff and estimated value
- Cash needed and purpose
- New total payment and costs
- What net cash is received after payoffs and charges?
- How much debt remains under each option at the same future date?
Compare costs over your own timeline
Include applicable upfront and ongoing mortgage insurance, not just the note rate. The duration of insurance depends on the loan terms and applicable rules; do not assume it disappears at 20% equity.
Ask for a written comparison of upfront cash, the full payment, any financed costs, and remaining debt at the same future date. Keep your emergency savings and likely moving plans in the decision.
Questions borrowers ask
Is the new interest rate applied only to the cash I receive?
No. In a cash-out refinance, the new terms apply to the entire replacement mortgage.
What should I send to get started?
Start with your goal, property location, approximate numbers, and timeline. Use the secure application channel for identity, income, and account records; do not email sensitive documents through an inquiry form.
Further reading & sources
Prepared by Aaron Clowes · NMLS #200900. Editorial sources checked October 27, 2026. Examples are hypothetical; actual costs, terms, eligibility, and program availability vary. This educational guide is not a rate quote or commitment to lend.