CASH-OUT REFINANCE
Turn your home equity into cash.
Turn your equity into cash with a cash-out refi and pay down high-interest debt, or increase your home’s value with a remodel.
•Get dedicated assistance from a Mortgage Loan Officer throughout the process.
• Get your rate in a matter of minutes.
BTW it's a soft inquiry, so it won't affect your credit score.†
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Fund your remodel with a cash-out refi.
Turn your equity into cash with a cash-out refi and fund those new marble countertops.
BTW it's a soft inquiry, so it won't affect your credit score.†
Why refi with SoFi?
Turn your home equity into cash.
Consolidate high-interest debt or pay for home renovations with cash-out refinancing.
Exclusive member benefits.
Save $500 on processing fees^—plus, gain access to events, expert advice, and a supportive community.
Save even more.
You could save thousands with a lower rate when you use cash-out refinancing to remodel your home or pay off high-interest debt.
Get help when you need it.
Our Mortgage Loan Officers are ready to guide you through the cash-out refinance process step by step.
What is cash-out refinancing and how does it work?
Refinancing your mortgage means trading in your old mortgage for a new one. When you refinance, your bank pays off your old mortgage with the new one.
People often choose to refinance their mortgage so they can lower their interest rate and shorten their payment term, or so they can turn the equity they’ve earned into cash. The cash received can be used for nearly any expense—from paying off high-interest debt to financing a home renovation.
Here’s an example.
Let’s say you have a home valued at $300,000. You owe $100,000 on your current mortgage and have $200,000 in equity. You want to borrow $40,000, so you apply for a cash-out refinance for $140,000.
In this scenario, $100,000 of the refinanced mortgage would go toward paying off your existing mortgage along with any other costs due at closing, and the remaining $40,000 would be received in cash.
Applying for a mortgage refi is as easy as 1-2-3.
We’ve made it quick and simple to apply online.
View your rate.
It only takes minutes to explore your options, and it won’t affect your credit score.†
Select your terms.
Choose your mortgage. We offer 10-, 15-, 20-, and 30-year options to meet your financial goals.1-4
Get support.
Dedicated Mortgage Loan Officers are standing by to guide you every step of the way.
BTW it's a soft inquiry, so it won't affect your credit score.†
Learn more about cash-out refinancing.
Not sure whether mortgage refinancing is right for you? We’ve broken down the pros, cons, and everything in between on SoFi Learn. But for starters, here’s a crash course.
FAQs
A HELOC is a line of credit secured by the borrower’s home that can be accessed on an as-needed basis, up to the borrowing limit. The borrower is only charged interest and is responsible for repaying the amount they actually borrowed.
For a cash-out refinance, the borrower takes out an entirely new mortgage while borrowing a portion of their existing home equity. The total borrowed amount of the cash-out refinance will be greater than the borrower’s original mortgage, and the borrower will receive the difference in a lump-sum payment from the lender.
Continue reading to learn more about the pros and cons of a HELOC versus a cash-out refinance.
There are stipulations around which home improvements are deduction-eligible, so we recommend consulting a tax professional prior to the start of any renovation project. This said, permanent additions and home improvements that increase the property’s value, extend its longevity, or adapt it for new uses are considered capital improvements, which are generally tax-deductible.
1 30-YEAR Payment Example: The payment for a 30-year term, loan amount $362000.00, Rate 6.375%, LTV 80% is $2258.00 for full Principal and Interest Payments with $7895.22 due at closing. The Annual Percentage Rate is 6.661%. No prepayment penalty. Payment shown does not include taxes and insurance. The actual payment amount will be greater. Interest rates and annual percentage rates (APRs) are for informational purposes only and are subject to change without notice.
2 20-YEAR Payment Example: The payment for a 20-year term, loan amount $362000.00, Rate 6.125%, LTV 80% is $2620.00 for full Principal and Interest Payments with $6559.44 due at closing. The Annual Percentage Rate is 6.450%. No prepayment penalty. Payment shown does not include taxes and insurance. The actual payment amount will be greater. Interest rates and annual percentage rates (APRs) are for informational purposes only and are subject to change without notice.
3 15-YEAR Payment Example: The payment for a 15-year term, loan amount $362000.00, Rate 5.490%, LTV 80% is $2956.00 for full Principal and Interest Payments with $6859.90 due at closing. The Annual Percentage Rate is 5.904%. No prepayment penalty. Payment shown does not include taxes and insurance. The actual payment amount will be greater. Interest rates and annual percentage rates (APRs) are for informational purposes only and are subject to change without notice.
4 10-YEAR Payment Example: The payment for a 10-year term, loan amount $362000.00, Rate 5.375%, LTV 80% is $3906.00 for full Principal and Interest Payments with $6794.74 due at closing. The Annual Percentage Rate is 5.959%. No prepayment penalty. Payment shown does not include taxes and insurance. The actual payment amount will be greater. Interest rates and annual percentage rates (APRs) are for informational purposes only and are subject to change without notice.