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Ask us what cash out refinance rate we can offer you!

The cash out refinance rate we may be able to offer you depends on your credit score, income, finances, the current mortgage rate market, and other factors. Freedom Mortgage may be able to offer you a rate that is lower – or higher – than the rate you see advertised by other lenders. Ask us today what cash out refinance rate we can offer you.

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What is a VA cash out refinance?

A VA cash out refinance helps you get cash from the equity in your home. These refinances let you replace your current mortgage with a new VA mortgage for a higher amount, and get the difference in cash when you close your new loan.

For example, pretend your current mortgage balance is $125,000. With a VA cash out refinance, you might be able to get a new VA mortgage for $175,000 plus $50,000 in cash. You can use this cash to pay for home improvements and college educations or to help you consolidate higher interest debts.

Veterans, military personnel, and surviving spouses may be eligible for VA cash out refinances. You will need to meet credit, income, and financial requirements to get your application approved. Freedom Mortgage was the #1 VA lender in the United States according to Inside Mortgage Finance, 2021.

Get cash from home equity

Finance up to 90% of value

Pay for home renovations

Pay for college educations

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How much cash can you get?

The amount of cash you might get from a VA cash out refinance depends on the value of your home’s equity and the loan-to-value ratio of your refinance. Change the default values to personalize your estimate!

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Calculator assumes your loan-to-value ratio is 90%. This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a VA loan advisor at Freedom Mortgage.

You might qualify for $50,000

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Ask us what VA cash out rate we can offer you

The VA cash out rate we may be able to offer is personal to you. Your interest rate is affected by the type of loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a rate that is lower - or higher - than the rate you see advertised by other lenders. Ask us today what VA cash out rate we can offer you.

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Choose the cash out refinance that’s right for you!

We offer cash out refinancing with several loans at Freedom Mortgage. VA loans might let you borrow more money from your home’s equity compared to conventional loans and might have more flexible credit requirements too. VA cash out refinances have funding fees which conventional cash out refinances do not have. See our loan comparison.

VA cash out refinances

  • Only qualified veterans, military personnel, and surviving spouses are eligible
  • Maximum loan-to-value ratio often 90%
  • Minimum credit score often 550
  • Mortgage insurance not required
  • Most veterans will pay a funding fee of 2.3% to 3.6% of loan amount
Learn More

Conventional cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Minimum credit score often 620
  • Mortgage insurance not required with home equity 20% or more
  • No funding fee
Learn More

FHA cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Minimum credit score often 550
  • Mortgage insurance required
  • No funding fee
Learn More
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What Our Customers Say

Check out the reviews from some of our customers.

Reviews and comments have been submitted by customers voluntarily and are solely their views. Customers were not compensated for their reviews/comments but were informed that they may be used in Freedom Mortgage Corporation marketing. Customer experiences are not meant to suggest future performance and may not be representative of your experience.

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VA cash out refinance fees and requirements

You need equity in your home to get a VA cash out refinance, which lenders often measure using a loan-to-value ratio (LTV). You also need to complete an application, provide documents, and meet your lender’s credit, income, and financial standards to get approved. Here’s what else you need to know about VA cash out refinancing.

New home appraisal

You will probably need a new home appraisal to estimate the current value of your home. This appraisal also helps determine how much home equity you have and how much cash you may be able to borrow against it. An appraisal typically costs $300 to $400. Learn about home appraisals

Loan-to-value ratio

Your loan-to-value ratio (LTV) also helps determine how much cash you may be able to borrow against the value of your home’s equity. The maximum LTV for many VA cash out refinances is 90%, which may help you access more cash by refinancing. Learn about cash out LTVs

New credit check

We will probably check your credit score before we approve your loan. 550 is often the minimum credit score needed for a VA cash out refinance. A higher credit score might help you get a lower interest rate. Learn about VA loan credit scores

Funding fee

You will likely need to pay a funding fee of 2.3% of the loan amount if this is your first VA cash out refinance. This fee increases to 3.6% after your first cash out refinance. Disabled veterans and surviving spouses may be exempt from paying this fee.Learn about VA funding fees

Closing costs

VA cash out refinance closing costs can average between 3% and 5% of the loan amount according to Veterans United. These closing costs are in addition to the funding fee most veterans will need to pay. Many times you can roll the funding fee and closing costs into your loan amount. Learn about VA closing costs

Loan disclosures and closing

Once you submit your application, you will need to review and sign Loan Disclosures. You’ll also need to attend the closing of your new VA mortgage with cash out.Learn about disclosures

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A VA cash out refinance allows you to tap your home’s equity to get cash. It takes your existing VA loan and replaces it with a new VA loan for a higher amount. When you close, you receive the difference between the two loan amounts in cash. VA cash out refinances can have more flexible requirements than other types of cash out refinances.

A VA cash out refinance can give you a lump sum of cash for home renovations or college education. Using the money for home renovation can be especially beneficial if the updates increase the value of your home.

VA cash out refinancing can also be used to consolidate higher interest debt. For example, some VA homeowners use the money from a cash out refinance to pay down other debts and consolidate them into their monthly mortgage payments. When the interest rate on a cash out refinance is significantly lower than the rate you are currently paying on other debt, it may make sense to borrow against the value of your home’s equity to consolidate these debts and save on interest payments. By refinancing, the total finance charges you pay may be higher over the life of the loan.

Freedom Mortgage Corporation is not a financial advisor. The ideas outlined above are for informational purposes only, are not intended as investment or financial advice, and should not be construed as such. Consult a financial advisor before making important personal financial decisions.

You will need to complete an application and provide a current set of credit, income, and financial documents to get approved for a VA cash out refinance. You will likely need a new home appraisal as well to estimate the current value of your home.

The home appraisal helps determine how much equity you have in your home and how much money you might be able to borrow. How much money you might get also depends on the refinance’s maximum loan-to-value ratio. Pretend this sample calculation describes your home:

Home Value $250,000
Current mortgage balance $175,000
Sample maximum LTV 0.9 or 90%
Maximum new mortgage balance $225,000 ($250,000 x 0.9)
Maximum cash available $50,000 ($225,000 - $175,000)

In this example, you can increase your mortgage balance to $225,000. This might allow you to borrow up to $50,000 in cash from your home’s equity. You can use the calculator on this page to estimate the amount of cash you might be able to get from your home.

Keep in mind that VA cash outs come with closing costs that you will need to pay or add to your loan amount. If you add closing costs to your loan amount, this can reduce the amount of cash you might get.

A 100% VA cash out lets you to borrow up to 100% of your home’s current market value, which can allow you to get more cash from your home’s equity. For example, if your home is worth $275,000, you may be able to increase your mortgage principal balance up to $275,000. At Freedom Mortgage, we allow you to borrow up to 90% of your home’s value with a VA cash out refinance.

  • Home equity

You need a reasonable amount of home equity to get a VA cash out refinance. You can build equity by paying down your mortgage principal or if your home value rises. You can estimate your home’s equity by taking the current value of your home and subtracting your mortgage principal. For example, if your home is worth $250,000 and you owe $175,000 on your mortgage, you have $75,000 in home equity.

  • Loan-to-value ratio

Your loan-to-value ratio affects how much money you may be able to borrow with a VA cash out refinance. Loan-to-value ratio is the percentage you get when you divide your mortgage amount by your home’s value. For example, if your home is worth $250,000 and you owe $175,000 on your mortgage, then your LTV is 70%. (That is, $175,000 ÷ $250,000 = 0.7 or 70%.) One advantage of VA cash out refinancing is you may qualify for a maximum LTV of 90%, which means you can borrow almost the full value of the equity in your home.

  • Credit and finances

You typically need a reasonably good credit score, income, and finances to get your application for a cash out refinance approved. At Freedom Mortgage, we can often accept a credit score as low as 550 for VA cash out refinances.

  • Funding fee

Most VA homeowners need to pay a funding fee when they get a cash out refinance. This funding fee is 2.3% of the loan amount for their first cash out refinance and 3.6% for each cash out refinance after the first. Disabled veterans and surviving spouses may be exempt from paying this fee.

  • Closing costs

You will probably have to pay closing costs with a VA cash out refinance. These might average between 3% to 5% of the loan amount according to Veterans United. These closing costs are in addition to the funding fee.

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The Freedom Mortgage Difference

We are committed to making you a life-long customer with exceptional mortgages and exceptional service!

We’ll help you choose the right mortgage and work with you to make buying a home or refinancing easy. We'll also keep an eye on your rate and let you know when you can lower your payment or get cash from your home's equity.

We are thankful for our 1.8 million customers. It’s because of homeowners like you that we’ve grown over the past 30 years to become one of the top lenders in America.

We are proud to support veterans and service members with charitable work like raising $93,000 to buy school supplies for military families. We are also committed to fighting hunger in communities across the nation.