Refinancing for home improvement: How it works
Tapping your home to upgrade your home: A good idea, but beware the potential pitfalls.
7 min read
Mar 27, 2025
See the cash-out possibilities
The market’s moving fast but we can help you move faster. Just enter your address and find out if now’s the time to tap into your equity.
The cash-out refinancing basics
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A cash-out refinance lets you to borrow cash from the home equity you’ve built as you’ve paid your mortgage.
Watch the video below for a run-down from our Bankrate experts.
Bankrate's Hanneh Bareham covers the basics of cash-out refinance
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Cash-out refinance for your goals
Improve your home with a cash-out
Cash-out refinancing can cover expenses for major home upgrades that increase your home value, like fixing up an outdated bathroom or finally putting together your dream kitchen.
Before you start knocking down walls, it’s always a good idea to research your options. We’ve put together some handy articles and tools to help you get started.
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How to pay for home improvements
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Mortgages and loans to pay for home renovations
Financial tools to make that project happen — provided you pick the right one for your needs.
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Cash-out refinance: What it is and how it works
A cash-out refi lets you tap your home equity in cash. See if it’s right for you.
5 min read
Dec 20, 2024
See how much you can borrow
Just enter your home’s current estimated value and the amount you have left to pay on your mortgage. We’ll show you how much you may be able to borrow from your home.
Cash-out up to
$160,000
Estimated home equity
$200,000
Mortgage balance
$100,000
borrow up to
$160,000
Homeowners can typically borrow of up to 80% of their home equity. Your location and other factors can affect this estimate.
Compare your borrowing options
Cash-out refinance
A lump sum of cash taken out of your home equity, paid back through your new mortgage payment.
Features
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Secured by home equity
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Higher borrowing limits
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No extra monthly payment
Home equity line of credit
A line of credit that’s borrowed from your home equity, and works more like a credit card.
Features
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Secured by home equity
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Common for home projects
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Use what you need
Home equity loan
A loan that’s taken out of your home equity, but is paid back as a separate monthly payment.
Features
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Secured by home equity
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Access a lump sum of cash
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No effect on mortgage
Personal loan
A loan that is not secured against your home equity and is paid back as a separate monthly payment.
Features
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Not secured by equity
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Can have lower limits
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No effect on mortgage
Refinance
A new loan to replace your current mortgage, likely with a lower rate or different term.
Features
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No effect on home equity
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Can lower interest rate
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No access to cash
The Bankrate difference
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Financial guidance unique to you
We help you find what works for you and your money, whether it’s small changes, big decisions or something in between.
Lower Rates
We help you find mortgage rates that are lower than the national average. Homeowners who refinance with Bankrate’s help save hundreds every month.
Decades of experience
Since 1976, Bankrate has been a trusted name in personal finance. We connect 800,000 people to quality mortgage lenders every year.
Take your first step toward refinancing
We’ll show you what’s possible in just 15 seconds.