Estimating cash from an FHA cash-out refinance, line by line
Line 2: what gets paid off
How the math works
Every lien on the home must be paid off or resolved: your first mortgage, any second mortgage or HELOC, and liens such as unpaid property taxes or judgments. Use payoff quotes, which include interest to a date, rather than statement balances. The total comes out before any cash reaches you.
Last reviewed against the primary sources listed below.
Gather payoff quotes for
- First mortgage.
- Any HELOC or second mortgage.
- Other recorded liens.
Calculator questions
Does a HELOC have to be paid off in an FHA cash-out?
Generally yes, or the lender must approve leaving it in place behind the new loan.