Proceeds are net of costs
The cash you receive is the new loan amount minus your current payoff, closing costs, prepaid items and any new escrow deposit. Page 3 of the Closing Disclosure, in the Calculating Cash to Close table and the payoffs and payments section, shows exactly how the money moves.
Typical cost categories
Expect lender charges in Section A, an appraisal and credit report in Section B, and title insurance and settlement fees in Section C. Recording fees and any transfer taxes appear in Section E. Pricing adjustments for cash-out may appear as points or as a higher rate.
What closing costs look like on a cash-out refinance, how they reduce your proceeds, and how the three-day right of rescission works.
Payoff statements
Your current servicer issues a payoff statement showing principal, interest through the payoff date and any fees. Interest is usually charged through the day the payoff is received, so timing affects the figure.
The right of rescission
For a refinance or home equity loan on your principal dwelling with a new lender, federal Regulation Z gives each owner three business days after the latest of closing, receiving the Truth in Lending disclosures, or receiving two copies of the rescission notice, to cancel. Funds are not disbursed until the period ends. Saturdays count as business days for this purpose; Sundays and federal holidays do not.
Planning
Schedule closing with the rescission period in mind if you need funds by a certain date. Ask the settlement agent for the expected disbursement date in writing.
Sources
Sources checked 10/23/2026. General education only; confirm current rules with official sources and a licensed lender.