Estimating cash from an FHA cash-out refinance, line by line
How much cash an FHA cash-out could give you
How the math works
Start with the appraised value and apply FHA's cap for cash-out refinances, eighty percent of value, to get the largest base loan. Subtract the payoff of every lien on the home and any closing costs paid from the loan; what remains is roughly your cash. The upfront mortgage insurance premium is usually added on top of the base loan, so it raises your balance but does not reduce your cash.
Last reviewed against the primary sources listed below.
ToolCalculatorYour numbers, line by line.Line 1The value that countsThe appraisal.Line 2What gets paid offEvery lien.Line 3Premium on topFinanced above the cap.Line 4Costs from proceedsWhat comes out first.AfterNew monthly costPayment and annual premium.Use itReading your resultWhat the estimate means.New guideLow appraisalHow a lower appraised value changes the maximum loan and cash in an FH.New guideTwo scenariosA method for testing different values, payoffs or costs in the FHA cas.GlossaryKey termsPlain definitions with sources.GuideEstimating valueWhy a cautious value gives a more useful cash-out estimate.GuideZero cashCommon reasons the numbers leave little cash after payoff and costs.PrintableLender questionsQuestions to bring to any lender, ready to print.
Independent, not official
This is not a government website. The rules come from HUD's Handbook 4000.1.