.calculator-header { background: #1a365d; color: #fff; padding: 30px; text-align: center; }
.calculator-header h2 { margin: 0; font-size: 28px; color: #fff; }
.calculator-body { padding: 30px; display: grid; grid-template-columns: 1fr 1fr; gap: 30px; }
@media (max-width: 768px) { .calculator-body { grid-template-columns: 1fr; } }
.input-group { margin-bottom: 20px; }
.input-group label { display: block; font-weight: 600; margin-bottom: 8px; color: #2d3748; }
.input-group input { width: 100%; padding: 12px; border: 2px solid #cbd5e0; border-radius: 6px; font-size: 16px; transition: border-color 0.2s; box-sizing: border-box; }
.input-group input:focus { border-color: #3182ce; outline: none; }
.calc-button { background: #38a169; color: white; border: none; padding: 15px 30px; border-radius: 6px; font-size: 18px; font-weight: 700; cursor: pointer; width: 100%; transition: background 0.2s; }
.calc-button:hover { background: #2f855a; }
.results-box { background: #f7fafc; padding: 25px; border-radius: 8px; border-left: 5px solid #3182ce; }
.result-item { display: flex; justify-content: space-between; margin-bottom: 15px; border-bottom: 1px solid #e2e8f0; padding-bottom: 10px; }
.result-item:last-child { border-bottom: none; }
.result-label { font-weight: 500; color: #4a5568; }
.result-value { font-weight: 700; color: #2c5282; font-size: 18px; }
.article-section { padding: 40px 30px; background: #fff; border-top: 1px solid #e1e1e1; }
.article-section h3 { color: #1a365d; font-size: 24px; margin-top: 25px; }
.article-section p { margin-bottom: 15px; color: #4a5568; }
.highlight-box { background: #ebf8ff; padding: 20px; border-radius: 6px; margin: 20px 0; }
function calculateCashOut() {
var homeValue = parseFloat(document.getElementById('refi_homeValue').value);
var currentBalance = parseFloat(document.getElementById('refi_mortgageBalance').value);
var ltvLimit = parseFloat(document.getElementById('refi_ltvLimit').value) / 100;
var interestRate = parseFloat(document.getElementById('refi_interestRate').value) / 100 / 12;
var loanTermMonths = parseFloat(document.getElementById('refi_loanTerm').value) * 12;
if (isNaN(homeValue) || isNaN(currentBalance) || homeValue 0) {
monthlyPayment = maxLoanAmount * (interestRate * Math.pow(1 + interestRate, loanTermMonths)) / (Math.pow(1 + interestRate, loanTermMonths) – 1);
} else {
monthlyPayment = maxLoanAmount / loanTermMonths;
}
// Display Results
document.getElementById('res_maxLoan').innerText = formatCurrency(maxLoanAmount);
document.getElementById('res_cashOut').innerText = formatCurrency(rawCashOut > 0 ? rawCashOut : 0);
document.getElementById('res_newPayment').innerText = formatCurrency(monthlyPayment);
document.getElementById('res_closingCosts').innerText = formatCurrency(closingCosts);
if (rawCashOut <= 0) {
document.getElementById('res_cashOut').style.color = "#e53e3e";
document.getElementById('res_cashOut').innerText = "Insufficient Equity";
} else {
document.getElementById('res_cashOut').style.color = "#38a169";
}
}
function formatCurrency(num) {
return "$" + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
// Initialize calculation
window.onload = calculateCashOut;
Cash-Out Refinance Calculator
Maximum New Loan:
$0.00
Estimated Cash Out:
$0.00
New Monthly Payment:
$0.00
Est. Closing Costs (3%):
$0.00
*Estimation includes principal and interest. It does not include taxes or insurance.
How a Cash-Out Refinance Works
A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan amount and your old mortgage balance is paid to you in cash at closing. This financial strategy allows homeowners to leverage their home equity for high-interest debt consolidation, home improvements, or major investments.
Example Scenario:
If your home is worth $500,000 and you owe $200,000, most lenders allow an 80% Loan-to-Value (LTV) ratio.
80% of $500k = $400,000 max loan.
Subtracting your $200,000 existing debt leaves $200,000 (minus closing costs) as usable cash.
If your home is worth $500,000 and you owe $200,000, most lenders allow an 80% Loan-to-Value (LTV) ratio.
80% of $500k = $400,000 max loan.
Subtracting your $200,000 existing debt leaves $200,000 (minus closing costs) as usable cash.
Understanding the Math
Lenders typically cap the amount you can borrow at 80% of the home's appraised value. This is known as the "Loan-to-Value" (LTV) limit. To calculate your potential cash, we use the formula:
Cash Out = (Home Value × Max LTV%) – Current Mortgage Balance – Closing Costs
Key Factors for Approval
- Credit Score: Most lenders require at least a 620, though 720+ secures better rates.
- Debt-to-Income (DTI): Your total monthly debt payments should generally remain below 43-45% of your gross income.
- Home Equity: You typically need to have more than 20% equity in the property to qualify for a cash-out option.
Pros and Cons of Refinancing
While cash-out refinancing offers lower interest rates than personal loans or credit cards, it does restart your mortgage term and increases the total interest paid over the life of the loan. Always consider the closing costs, which usually range from 2% to 5% of the new loan amount.