Estimate your new monthly payment after a cash-out refinance.
4.5%
30 Years
Estimated New Monthly Payment
$0.00
(Principal & Interest Only)
Understanding Mortgage Refinance Cash Out
A cash-out refinance allows you to replace your existing mortgage with a new one for a larger amount,
taking the difference in cash. This can be a useful financial tool for various purposes, such as
home improvements, debt consolidation, education expenses, or significant investments.
However, it's crucial to understand the financial implications, including how it affects your monthly
payments and the total interest paid over the life of the loan.
How the Calculator Works
This calculator uses a standard mortgage payment formula to estimate your new principal and interest
payment after a cash-out refinance. The formula for calculating the monthly mortgage payment (M) is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment (Principal & Interest)
P = The principal loan amount (your current loan balance plus the cash-out amount)
i = Your monthly interest rate (annual interest rate divided by 12)
n = The total number of payments over the loan's lifetime (loan term in years multiplied by 12)
Inputs Explained:
Current Loan Balance: The outstanding amount on your existing mortgage.
Cash Out Amount: The lump sum of cash you wish to receive from the refinance.
New Interest Rate: The annual interest rate for your new, larger mortgage. This is a critical factor influencing your payment.
New Loan Term: The duration of your new mortgage, typically in years. A longer term generally means lower monthly payments but higher total interest paid.
Using the Calculator
1. Enter your current loan balance.
2. Enter the cash out amount you need.
3. Input your estimated new interest rate (you can use the slider or type directly).
4. Select the desired new loan term in years (using the slider or typing).
5. Click "Calculate New Payment".
The calculator will display your estimated new monthly principal and interest payment. Remember that
this figure does not include property taxes, homeowners insurance, or private mortgage insurance (PMI),
which would be additional costs.
When is a Cash-Out Refinance a Good Idea?
Home Improvements: Funding renovations to increase your home's value or improve your living space.
Debt Consolidation: Paying off high-interest debt (like credit cards or personal loans) with a potentially lower mortgage rate.
Education Funding: Covering tuition and other education-related expenses.
Investment Opportunities: Using funds for significant investments, though this carries higher risk.
Emergency Fund: Creating a financial cushion for unexpected events.
It's essential to weigh the benefits of accessing cash against the costs of a new, larger mortgage,
including closing costs and increased interest payments. Compare the new rate and terms carefully
with your current mortgage and explore all your financing options.
function updateSliderValue(id, valueId, unit = "") {
var slider = document.getElementById(id);
var output = document.getElementById(valueId);
output.innerHTML = parseFloat(slider.value) + unit;
// Update the hidden input field as well
document.getElementById(id + 'Input').value = slider.value;
}
function updateSliderFromInput(id, valueId, unit = "") {
var input = document.getElementById(id + 'Input');
var slider = document.getElementById(id);
var output = document.getElementById(valueId);
var value = parseFloat(input.value);
// Clamp value within slider's min/max
var min = parseFloat(slider.min);
var max = parseFloat(slider.max);
if (value max) value = max;
input.value = value; // Ensure input reflects clamped value
slider.value = value;
output.innerHTML = value + unit;
}
// Initialize slider values on load
updateSliderValue('newInterestRate', 'newInterestRateValue', '%');
updateSliderValue('loanTerm', 'loanTermValue', ' Years');
var rateSlider = document.getElementById('newInterestRate');
var rateInput = document.getElementById('newInterestRateInput');
var termSlider = document.getElementById('loanTerm');
var termInput = document.getElementById('loanTermInput');
rateSlider.oninput = function() {
updateSliderValue('newInterestRate', 'newInterestRateValue', '%');
rateInput.value = this.value; // Sync input field with slider
}
rateInput.oninput = function() {
updateSliderFromInput('newInterestRate', 'newInterestRateValue', '%');
}
termSlider.oninput = function() {
updateSliderValue('loanTerm', 'loanTermValue', ' Years');
termInput.value = this.value; // Sync input field with slider
}
termInput.oninput = function() {
updateSliderFromInput('loanTerm', 'loanTermValue', ' Years');
}
function calculateRefiCashOut() {
var currentLoanBalance = parseFloat(document.getElementById("currentLoanBalance").value);
var cashOutAmount = parseFloat(document.getElementById("cashOutAmount").value);
var newInterestRatePercent = parseFloat(document.getElementById("newInterestRate").value);
var loanTermYears = parseFloat(document.getElementById("loanTerm").value);
var resultDiv = document.getElementById("result");
var monthlyPaymentResult = document.getElementById("monthlyPaymentResult");
// Input validation
if (isNaN(currentLoanBalance) || isNaN(cashOutAmount) || isNaN(newInterestRatePercent) || isNaN(loanTermYears) ||
currentLoanBalance < 0 || cashOutAmount < 0 || newInterestRatePercent <= 0 || loanTermYears <= 0) {
monthlyPaymentResult.innerText = "Invalid input. Please enter valid numbers.";
return;
}
var principal = currentLoanBalance + cashOutAmount;
var monthlyInterestRate = newInterestRatePercent / 100 / 12;
var numberOfPayments = loanTermYears * 12;
// Handle the case where the interest rate is 0 or close to 0 to avoid division by zero or extremely large numbers
var monthlyPayment;
if (monthlyInterestRate === 0) {
monthlyPayment = principal / numberOfPayments;
} else {
var numerator = principal * monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments);
var denominator = Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1;
monthlyPayment = numerator / denominator;
}
// Format the result
if (isNaN(monthlyPayment) || !isFinite(monthlyPayment)) {
monthlyPaymentResult.innerText = "Calculation error.";
} else {
monthlyPaymentResult.innerText = "$" + monthlyPayment.toFixed(2);
}
}