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Home Loan Refinance Calculator

Cash Out Refinance Calculator

Use our home loan refinance calculator to compare loan and cash-out amounts and interest rates. Try the home loan refinance calculator.

Frequently Asked Questions

Everyone’s financial situation is different, but it may make sense for you to refinance your home, taking cash out to consolidate other debt that has higher interest rates like credit cards. When you pay less interest, you gain the opportunity to pay down your debt faster and improve your credit score.

Ask your mortgage lender about your options.
It may be a good idea to refinance if you can:
  • Get a lower interest rate
  • Eliminate the expense of Private Mortgage Insurance (PMI)
Usually, a conventional loan requires 20% equity in your home and a good credit score of 620 or higher. If you’re not in this position right now, it can be a goal to work toward.

Get Seven Tips for Improving Your Credit Score.

Keep in mind that when you refinance, you’ll likely need to cover the cost of closing costs and fees.
If you can refinance your home loan at a lower interest rate that frees up more of your income to buy a car, it may be a good move for you. It’s generally not recommended to take equity out of your home to buy a car, because a car is a depreciating asset that loses value over time, and if you can’t make the car payments, you may be at risk of losing your home.
Generally, people refinance their homes to take advantage of lower interest rates. Other reasons include:
  • Covering unexpected financial challenges
  • Dealing with emergencies and medical expenses
  • Facilitating major life changes like getting married, starting a family or caring for aging parents 
  • Consolidating higher-rate credit card debt
Evaluate your options with your mortgage lender before you decide.
Refinancing is something to consider if it allows you to:
  • Lower your interest rate
  • Reduce your monthly payments
  • Shorten your loan term
In making your decision, keep refinancing closing costs and fees in mind. Refinancing may not be worth it if you don’t plan to stay in your home long term. Talk with your mortgage lender to discuss the specifics of your situation.
It’s usually not the best idea to refinance before selling because you may not have time to recoup the expenses of closing costs and fees. A new home loan may also complicate the selling and buying processes. If you need to make home improvements before selling, a home equity line of credit (HELOC) or home equity loan (HELoan) may be a better option.

Learn more about HELOCs and HELoans: Should You Consider a HELOC or HELoan?
The interest rate on a fixed-rate mortgage stays the same throughout the life of the loan. With a fixed-rate mortgage, you don’t have to worry about your rate going up and causing a bigger monthly payment than you’ve planned on.  

The interest rate on an adjustable-rate mortgage (ARM) can chane over time. Usually, the rate is lower than the market rate for the fixed-rate period of the loan typically seven to ten years, and then it’s adjusted on a set schedule based on the current market rate.

The schedule will be in your loan terms. Adjustments may be madeevery six months. Some ARMs come with a cap on how much interest you’ll be expected to pay so you have an idea of how high your payment may rise.


You can change, but you’ll need to refinance through a new loan, which will come with closing costs and appraisal fees. Work with your mortgage lender to fully understand the math of what you’ll be spending and what you’ll be saving.
  1. The information presented in these calculators is for general and educational purposes only, and is not intended to provide legal, tax, lending or investment advice. Loan scenarios are not an application and not a commitment to lend. This information is meant to serve as estimates and may vary depending on certain conditions and restrictions. Annual Percentage Rates used within this tool are strictly informational and may not be the current advertised rates. Rates provided may be higher or lower and are in no way a binding agreement with United Community Bank.

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