Loan basics

Cash-out refinance

Also known as: cash out, cash-out refi

A refinance that replaces your loan with a larger balance so you receive cash at closing.

A cash-out refinance pays off your current mortgage and creates a new, larger loan. The difference (after fees, if applicable) is paid to you in cash. Cash-out increases loan-to-value and may affect PMI eligibility. A rate-and-term refinance keeps cash-out at zero and focuses on rate, term, or loan program changes.

See also