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KNB Capital · Loan Programs
Cash-Out
Refinance
Turn your home equity into tax-free cash. Pay off high-interest debt, fund renovations, invest in real estate, or cover any major expense — at mortgage rates far below credit cards.
The Basics
What Is A Cash-Out Refinance?
A cash-out refinance replaces your existing mortgage with a larger loan and gives you the difference in cash. For example, if your home is worth $800,000 and you owe $500,000, you might refinance to $640,000 (80% LTV) and receive $140,000 tax-free at closing.
Common uses include home renovations that increase value, debt consolidation (replacing 20%+ credit card rates with a 7-8% mortgage rate), investment property down payments, business funding, or simply building a cash reserve. There are no restrictions on how you use the funds.
Do You Qualify?
Cash-Out Refinance Requirements
Equity Required
Conventional cash-out allows up to 80% LTV — so you need at least 20% equity remaining after the cash-out. VA cash-out can go up to 90% LTV for eligible veterans.
Credit Score
620+ for conventional cash-out. Best rates come at 700+. Higher credit scores unlock better LTV limits and lower rate adjustments on cash-out loans.
Seasoning
Most programs require you’ve owned the home for at least 12 months before a cash-out refinance. Exceptions exist for inherited properties or large equity positions.
Primary vs Investment
Owner-occupied cash-out allows up to 80% LTV. Investment property cash-out is typically capped at 75% LTV with higher rate adjustments.
Common Questions
What Cash-Out Clients Ask Us Most
Cash-Out Refinance vs HELOC — Which Is Better?
A cash-out refi gives you a lump sum at a fixed rate on your full balance. A HELOC is a revolving line you draw on as needed. Refis are better for large one-time needs; HELOCs work better for ongoing access. We help you model both.
Is The Cash I Receive Taxable?
No — proceeds from a cash-out refinance are not considered income and are not taxable. However, how you use the funds (e.g., for investment) may have tax implications. Consult your CPA.
Does A Cash-Out Refi Hurt My Credit?
There’s a temporary dip from the hard inquiry and new account. But if you use proceeds to pay off credit card debt, your utilization drops and your score often rebounds within 3–6 months.
How Much Equity Can You Access?
No hard pull. Tell us your home value and current balance — we’ll show you your options.