Cash-Out Refinance Calculator
From current balance, rates, cash-out and costs, compute the new loan, monthly payment change, refinance cost and net cash received.
Input Data
Results
At a glance:A cash-out refinance replaces your mortgage with a larger new loan and takes the difference as cash — drawing on your property's appreciated equity. The tool combines current balance, cash-out, new rate/term and costs to show the new loan principal, old vs new monthly payment, the monthly change, refinance cost and net cash received. Example: balance 1.5m at 6.5% (23y left); cash out 200k at 6.5% for 25y, costs 35k → new loan 1.7m, new payment ~11,479 (old ~10,486), +~993/m, net cash ~165k. WARNING: It raises debt and usually extends the term, increasing lifetime interest; the cash must out-earn the mortgage rate. In Hong Kong, cash-out/equity withdrawal is subject to HKMA LTV caps and the stress test; the new loan cannot exceed the applicable LTV ceiling. Education, not advice.
Formula
New principal = current balance + cash out.
Refinance cost = closing costs + new principal × origination fee %.
Net cash = cash out − refinance cost.
Payment difference = M_new − M_old (each from the amortising loan formula).
$$\text{New Principal} = \text{Current Balance} + \text{Cash Out}$$$$\text{Refinance Cost} = \text{Closing Costs} + \text{New Principal} \times \text{Origination Fee \%}$$$$\text{Net Cash} = \text{Cash Out} - \text{Refinance Cost}$$$$\text{Payment Diff} = M_{\text{new}} - M_{\text{old}}$$How to Use
- Enter the current balance, old rate and remaining years.
- Enter the cash-out amount, new rate and new term.
- Enter origination fee and closing costs.
- View the new loan, payment change, cost and net cash.
FAQ
What is the difference between cash-out refinance and an equity loan (second mortgage)?
Both draw equity. A cash-out refinance replaces the whole mortgage with one larger new loan (single payment); an equity loan / second mortgage sits on top of the existing one (two separate payments). Refinance usually consolidates into one payment and may get the current market rate on the whole balance; a second mortgage adds a second, often higher-rate, payment. Choose by rate, fees and whether you want to disturb the first mortgage.
Why watch the refinance cost?
Fees (origination, valuation, legal) eat into the cash you actually receive. The tool shows net cash = cash-out minus cost. A small cash-out can be heavily eroded by fixed costs, so the effective cost is high; larger, well-justified draws spread the cost better. Always compare net cash, not gross.
Will the monthly payment always rise?
Not always. If the new rate is much lower or the term is longer, the payment can stay flat or fall even with a bigger principal — but a longer term usually means more total interest. The tool shows the payment difference so you can judge; do not mistake a flat payment for 'free' cash.
Are there LTV limits on cash-out in Hong Kong?
Yes. The HKMA sets loan-to-value (LTV) caps on mortgage equity withdrawal / cash-out that are generally stricter than for a purchase (depending on property value, use and whether owner-occupied), and you must pass the debt-servicing-ratio and interest-rate stress test. The total new loan cannot exceed the applicable LTV ceiling; the actual amount is subject to the bank's valuation and policy at the time. This is a key Hong Kong constraint to check before planning.
What is the cash best used for?
Since the cash effectively costs the mortgage rate, it suits uses that return more than the mortgage rate or are necessary large outlays — e.g. value-adding renovation, consolidating higher-rate debt. Using it for consumption or speculative bets with uncertain returns can backfire. Before drawing, weigh the payment increase and total interest against the use's expected return. Education, not advice.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.