When does a cash-out refinance beat a personal loan?

For large amounts ($30,000+) with long repayment horizons (10+ years), cash-out refinance often wins due to lower rate. For smaller amounts with shorter terms, personal loan avoids $5,000-$10,000 in closing costs.

What is the maximum cash-out amount?

Conventional loans allow cash-out up to 80% LTV. FHA cash-out: up to 80% LTV. VA cash-out: up to 100% LTV for eligible veterans. Cash-out = (Home value x max LTV) - existing mortgage balance.

Does a cash-out refinance reset the mortgage clock?

Yes — a new 30-year cash-out refinance restarts amortization from scratch. You may pay more total interest even at a lower rate. Consider 15-year or 20-year terms to limit this effect.

Cash-Out Refinance vs Personal Loan Comparison

Compare total cost of accessing equity via cash-out refinance versus an unsecured personal loan. Factors in rate difference, closing costs, and loan term.

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Frequently Asked Questions

When does a cash-out refinance beat a personal loan?

What is the maximum cash-out amount?

Does a cash-out refinance reset the mortgage clock?