Cash-out refinance

Turn your home’s equity into cash

A cash-out refi from Rocket Mortgage® is a smart way to shape a brighter financial future. Use it to pay down debt, update your space, or step into a more comfortable mortgage.

A man and woman embrace in their kitchen, while the man holds their child and the woman is cleaning dishes in the sink.A man and woman embrace in their kitchen, while the man holds their child and the woman is cleaning dishes in the sink.

Get a mortgage that fits your life & goals

Swap your current mortgage for one that gives you more. The difference comes to you as cash, often with a lower rate and more time to repay than other loans.

Step 1: Know your equity. Home equity equals home value minus loan balance. Step 2: Get the cash you need. New loan amount minus Old loan balance equals cash funds to you.

For Illustrative purposes only to show how to calculate tappable equity

Lock a new rate & get funded

Equity becomes cash

Get cash without selling your home, then use it for debt consolidation, renovating, or investing in your future

Lower interest rate

Replacing high-interest debt with a lower rate could save you money over time

One monthly payment

Simplify life by bringing everything together in one mortgage instead of multiple loans or credit cards

Discover financial flexibility

Use funds from a cash-out refi to fuel your dreams and make the right moves

Renovate your space and boost equity

Pay for education that opens new doors

Take a big first step towards debt-free living

Invest in yourself and grow your net worth

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A person sitting indoors with a patterned coffee mug in a holiday-decorated room.

What would you do with an extra $500 a month?

Rocket Mortgage clients save an average of $535 a month by consolidating debt using their home's equity. 1

Legal disclosure

1 On average, Rocket Mortgage clients save $535 a month when consolidating debt. Based on internal Rocket Mortgage data of refinance and Home Equity Loan transactions between 01/01/25 - 12/01/25, excluding equity extraction transactions.

Guidelines for cash-out refinancing

Check out these guidelines and if your details are close, it may be time to review your options with a Home Loan Expert

Equity

You should have at least 20% equity in your home to take cash out

Estimate my equity

Credit

You’ll typically need a credit score of at least 580, depending on the loan type

About credit

Debt-to-income

You should have a stable income and a debt-to-income ratio that’s comfortable for your budget

About debt-to-income

Your home

You’ll need a clear title and updated appraisal – we can help with this!

About appraisals

Compare what’s out there

Let’s take a look at some of the key differences compared to other options

Allows for rate reduction

Access to cash

Best for

Cash-out refinance

Cash-out refinance
Rate-and-term refinance
Home Equity Loan

Cash-out refinance

Allows for rate reduction

Yes

Access to cash

Yes

Best for

Accessing cash

Allows for rate reduction

Yes

Access to cash

No

Best for

Lowering monthly payments

Learn more

Allows for rate reduction

No, fixed second loan

Access to cash

Yes

Best for

Keeping current mortgage intact

Learn more

Rate-and-term refinance

Cash-out refinance
Rate-and-term refinance
Home Equity Loan

Rate-and-term refinance

Allows for rate reduction

Yes

Access to cash

Yes

Best for

Accessing cash

Allows for rate reduction

Yes

Access to cash

No

Best for

Lowering monthly payments

Learn more

Allows for rate reduction

No, fixed second loan

Access to cash

Yes

Best for

Keeping current mortgage intact

Learn more

Home Equity Loan

Cash-out refinance
Rate-and-term refinance
Home Equity Loan

Home Equity Loan

Allows for rate reduction

Yes

Access to cash

Yes

Best for

Accessing cash

Allows for rate reduction

Yes

Access to cash

No

Best for

Lowering monthly payments

Learn more

Allows for rate reduction

No, fixed second loan

Access to cash

Yes

Best for

Keeping current mortgage intact

Learn more

Cash-out refinance

Cash-out refinance
Rate-and-term refinance
Home Equity Loan

Rate-and-term refinance

Cash-out refinance
Rate-and-term refinance
Home Equity Loan

Allows for rate reduction

Yes

Yes

Access to cash

Yes

No

Best for

Accessing cash

Lowering monthly payments

Learn more

Frequently asked questions

We know you have questions, and we’re here to answer them

A cash-out refinance could be a good fit if you:
  • Have equity in your home that you want to access as cash
  • Have high-interest debt or big upcoming expenses
  • Want one fixed monthly payment
  • Plan to stay in your home for a while and want long-term value
With a cash-out refinance, you:
  1. Replace your existing mortgage with a larger loan
  2. Use the new loan to pay off your current mortgage
  3. Get the difference in cash
The new mortgage is based on your home’s current value, and you can typically borrow up to 80% of that value.

A rate-and-term refinance replaces your current mortgage with a new one, typically to lower your interest rate or change your loan term.

Unlike a cash-out refinance, you’re not borrowing extra money—just changing the rate, the term, or both to save over time.

You can use your cash-out funds for almost anything, including:
  • Home renovations or repairs
  • Consolidating high-interest debt
  • College tuition or education expenses
  • Major purchases or emergencies

Closing costs typically range from 2% to 6% of the new loan amount and can include loan origination fees, appraisal and title fees, credit report and recording fees, prepaid interest and escrow setup.

 Learn more about ways to refinance

Ready to put your equity to work?

We’ll guide you through options and help you decide if a cash-out refi is the right fit

Important legal disclosures

Refinancing may cause finance charges to be higher over the life of the loan.