Cash-out refinance
Turn home equity into cash with one fixed payment
Refinance for more than you owe and take the difference for renovations, tuition or paying off high-interest debt.
Cash-out refinance: how it works
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference at closing. Greater Boston homeowners who bought before 2020 often have substantial equity, and a cash-out refinance lets them use it at mortgage rates rather than credit card or personal loan rates.
Conventional cash-out loans allow borrowing up to 80% of your home's value, VA loans up to 90%. The whole balance then carries one rate, so this option works best when today's rate is close to or lower than your current rate, or when the amount of cash you need is large.
If you already have a very low first mortgage rate, a HELOC may cost less overall. We model both options side by side.
What's included with Harborview
- Side-by-side comparison with a HELOC
- Debt consolidation payoff at closing
- Renovation budget planning
- Fixed-rate terms from 10 to 30 years
- Primary, second home and investment properties
- Funds wired 3 business days after signing
The process, step by step
Your loan officer stays with you the whole way, and you get status updates by text at every milestone.
Equity estimate
We estimate value with recent sales and confirm how much cash is available.
Compare options
Cash-out refinance versus HELOC, with total cost over 5 and 10 years.
Appraisal
A full appraisal confirms value; renovation plans can be noted.
Close and receive funds
After the rescission period, funds are wired to you or your creditors.
Benefits worth knowing
Mortgage-rate borrowing
Replace 22% credit card interest with a single mortgage rate.
One predictable payment
A fixed rate means your payment will not rise with the market.
Large amounts
Access more than most personal loans or lines of credit allow.
Qualifying guidelines
General guidelines only. Exceptions and overlays apply, and your loan officer will review your situation.
| Factor | Guideline |
|---|---|
| Equity | Keep at least 20% equity after cash-out (10% for VA) |
| Credit score | 640 minimum; pricing adjusts by score and LTV |
| Debt-to-income | Up to 45%, including the new payment |
| Ownership | At least 12 months on title |
| Current rate | Compare with a HELOC if your first rate is much lower |
Related programs
Use your equityHome equity line of credit
A revolving line of credit secured by your home, ideal for phased renovations and tuition paid over time.
Learn more
RefinanceRate-and-term refinance
Replace your current mortgage with one that fits where you are now, with a break-even analysis before you commit.
Learn more
Use your equityReverse mortgage
An FHA-insured Home Equity Conversion Mortgage for homeowners 62 and older, with no required monthly mortgage payment.
Learn more
Cash-out refinance questions
More answers in our full FAQ.
Loan proceeds are not income, so they are generally not taxed. Interest deductibility depends on how funds are used; ask your tax advisor.
If your current rate is well below today's rates, a HELOC usually costs less. If rates are similar or you need a large fixed amount, cash-out can be better. We show both.
Generally up to 80% of your home's value minus what you owe. On a $900,000 home with a $450,000 balance, that is up to $270,000 before costs.
Ready to see your Cash-out refinance numbers?
A pre-approval takes about 10 minutes online and does not affect your credit score. A local loan officer follows up the same day.
- Soft credit check
- 24-day average close
- 4.9 from 1,284 reviews
