Compare your options
Your existing mortgage, costs, and repayment plan.
Cash-out refinance.
Compare the full cost.
Cash from your equity, one new loan, one payment - weighed honestly against keeping the mortgage you have. GA, AL, TN, FL, NC & SC.
The Short Answer
A cash-out refinance replaces your mortgage with a larger loan. Available cash depends on the payoff, closing costs and other debts paid from the proceeds. Compare the rate, repayment term and total cost with a HELOC that leaves the first mortgage in place. The choice depends on the complete numbers, not just your current interest rate.
How much cash do you actually receive from a refinance?
Estimated cash received equals the new loan amount minus mortgage payoffs, other debts paid at closing and transaction costs paid from the loan. The new loan balance is not the amount available to spend.
| Hypothetical closing calculation | Amount |
|---|---|
| New mortgage | $400,000 |
| Existing mortgage payoff | −$300,000 |
| Closing costs and other closing items paid from proceeds | −$12,000 |
| Estimated cash received | $88,000 |
This example assumes no other debt payoffs. The final payoff includes amounts due through the closing date, and actual costs depend on the transaction. Credit, property use, valuation and the selected program determine the loan limit.
For your own home, compare the total cost and repayment period of a HELOC against replacing the first mortgage. For an investment rental, start with DSCR cash-out refinancing, which has different qualification and property-use requirements. For an income-producing commercial building, use the commercial refinance guide.
Product comparison: CFPB explanation of cash-out refinancing and other equity options. The calculation is illustrative and is not a quote.
Know Your Options
HELOC vs. home equity loan vs. cash-out refinance
| HELOC | Home equity loan | Cash-out refinance | |
| Your current mortgage | Stays as is | Stays as is | Replaced by a new loan |
| How you receive funds | A line you draw as needed | One lump sum | Lump sum at closing |
| Payment style | Varies with balance drawn | Fixed or adjustable payments, depending on the loan | One new mortgage payment |
| Usually fits when | Costs arrive in stages | One known amount, fixed budget | Replacing the mortgage fits the total cost and repayment plan |
Keeping a low first-mortgage rate usually favors a second-lien option; replacing a higher-rate loan can favor a cash-out refinance. A licensed advisor compares all three for your numbers - starting from your home equity options if keeping your rate matters most.
The Trade-Off
Compare the rate, term and costs together
Replacing a mortgage means giving up its rate. If you locked a low rate years ago, the cash may cost less through a second lien that leaves your first mortgage untouched. If your rate is high, a cash-out refinance can put cash in hand and restructure the loan at once.
The term matters too: a new 30-year loan resets the clock unless you choose a shorter term. Run the refinance calculator to see the break-even math on your numbers.
Common Uses
What the cash typically does
Consolidate eligible high-interest debts into one mortgage-secured payment - restructured, not erased, and your home secures the new loan.
Renovation - fund a project at mortgage-size cost instead of contractor financing.
Investment or large expense - tuition, a business, a property purchase - with a licensed advisor pricing the true long-term cost first.
Common Questions
What borrowers ask us
What is a cash-out refinance?
A cash-out refinance replaces the existing mortgage with a larger loan. You receive the cash remaining after existing debt, other obligations paid at closing and costs deducted from the proceeds are paid.
Cash-out refinance or HELOC - which is better?
If your current mortgage rate is low, a second-lien HELOC or fixed home-equity loan usually protects it. If your current rate is at or above today's market, replacing the loan can make sense. The honest answer comes from comparing both against your rate, balance, and timeline.
How much cash can I take out?
The amount depends on value, occupancy, credit and program limits. Subtract the payoff and costs paid from proceeds from the approved loan amount. The example on this page shows why a new loan balance and net cash are different.
Does a cash-out refinance restart my mortgage?
It replaces your current loan with a new one, so the term resets unless you choose a shorter one. That long-term cost belongs in the comparison - we put it there.
Do I need an appraisal?
An acceptable property valuation is required by the program. The method and any alternative to a full appraisal are confirmed during review; do not assume an appraisal can be skipped.
Is this available in my state?
Stonehaven arranges cash-out refinancing in Georgia, Alabama, Tennessee, Florida, North Carolina, and South Carolina.
For homeowners
Plan your next step with home equity
Compare a line of credit, a home equity loan, and refinancing around the goal you want to fund.
Understand your equity
A worked example with visible assumptions.
Prepare for the conversation
A printable checklist without uploading documents.
Georgia homeowner questions
Local context and independent information.
Start Here
Tell us about the current loan
Balance, rate, and goal - a specialist replies within one business day. No hard credit pull to compare initial options.
Prepare the next decision
The Georgia cash-out refinance case study describes a Stonehaven-reported closing that replaced a mortgage and paid off an auto loan. Review the costs, changed repayment term and debt now secured by the home; the published terms describe that transaction, not a current offer.