Mortgage pricing basics

5 guides, read top to bottom, take you from What Affects Cash-Out Refinance Pricing to A Cash-Out Budget Worksheet: Planning How You Use the Proceeds.

Read in this order

1. What Affects Cash-Out Refinance Pricing1 min read

   Why cash-out refinances are often priced differently than rate-and-term refinances, and the factors you can influence.

   • A cash-out refinance replaces your current mortgage with a larger one and pays you the difference.
   • If your current rate is lower than what a new loan would carry, replacing the whole balance may cost more over time than a home equity loan or home equity line of credit (HELOC) on just the amount you need.
2. Second-Lien Alternatives: HELOCs and Home Equity Loans1 min read

   How second mortgages work, how they are priced, and when they may be a better fit than a cash-out refinance.

   • A home equity line of credit is a revolving line secured by your home.
   • A home equity loan pays a lump sum with a fixed rate and fixed term.
3. Cash-Out Refinance, Home Equity Loan or HELOC?1 min read

   How the three main ways to borrow against a home differ in structure, cost and risk.

   • A cash-out refinance replaces your current first mortgage with a larger one and gives you the difference in cash, minus costs.
   • A home equity loan is a separate second mortgage with a fixed amount paid out at closing and, usually, a fixed repayment schedule.
4. Cash-Out Closing Costs and the Right to Cancel1 min read

   What closing costs look like on a cash-out refinance, how they reduce your proceeds, and how the three-day right of rescission works.

   • The cash you receive is the new loan amount minus your current payoff, closing costs, prepaid items and any new escrow deposit.
   • Expect lender charges in Section A, an appraisal and credit report in Section B, and title insurance and settlement fees in Section C.
5. A Cash-Out Budget Worksheet: Planning How You Use the Proceeds1 min read

   A practical worksheet for deciding how much equity to take, what to use it for and how to keep the new loan affordable.

   • Before estimating any amount, write down exactly what the cash is for: a renovation, paying off higher-cost debt, education or a reserve.
   • A cash-out replaces your existing mortgage, so its cost includes closing costs on the whole new loan, not just the cash portion.

Run your own numbers

5 calculators on this site, all blank until you type:

• Cash-out estimate
• Payment and amortization
• Refinance break-even
• Debt-to-income check
• Closing cost worksheet

Check which programs fit

The loan finder asks six questions and points you to the programs worth reading about, with a side-by-side comparison table. It is education, not an eligibility decision.

Terms you will meet in these guides

• Indexfirst in Second-Lien Alternatives: HELOCs and Home Equity Loans
• Cash-out refinancefirst in Cash-Out Refinance, Home Equity Loan or HELOC?
• Marginfirst in Cash-Out Refinance, Home Equity Loan or HELOC?
• Loan-to-value (LTV)first in Cash-Out Refinance, Home Equity Loan or HELOC?
• Closing Disclosurefirst in Cash-Out Closing Costs and the Right to Cancel
• Appraisalfirst in Cash-Out Closing Costs and the Right to Cancel
• Servicerfirst in Cash-Out Closing Costs and the Right to Cancel
• Rescissionfirst in Cash-Out Closing Costs and the Right to Cancel

Everything here is general education. Program rules change; confirm current requirements with the official sources below and with a licensed lender.

Sources

• CFPB: Mortgages
• Regulation Z, 12 CFR 1026
• CFPB: What is a home equity line of credit?
• CFPB: Closing Disclosure explainer
• CFPB: Consolidating credit card debt
• CFPB: Loan Estimate explainer

Sources reviewed October 23, 2026. This page was assembled from the guides on this site.