Compare your current loan with a new, larger cash-out refinance to see the new payment and how long it takes to recoup closing costs. A cash-out refinance converts home equity to cash but resets your loan and puts your home on the line — the CFPB explains the equity trade-off.
You replace your mortgage with a larger loan and take the difference in cash. It can fund renovations or consolidate debt, but it increases your balance and monthly payment — enter the new loan amount and rate to see the effect.
You are borrowing against home equity, so a larger loan means more interest and greater risk if home values fall. The CFPB cautions that using your home as collateral for other debt can put the home at risk if you cannot repay.
Most lenders let you borrow up to 80% of your home's value, keeping at least 20% equity. Compare your current and new payment here, then confirm limits with your lender.