Unlock your wealth.
California home values have risen significantly over the last 5 years. If you bought your home before 2022, you likely have a substantial "wealth reserve" sitting unused in your walls.
A Cash-Out Refinance replaces your current mortgage with a new one for a larger amount than you currently owe. The difference goes into your bank account as tax-free cash.
Smart Uses for Cash Out
Home Improvement
Reinvest in your property (ADU, Kitchen) to increase its value further.
Investment Property
Use the cash as a down payment for a rental property or vacation home.
Tuition & Education
Fund college expenses with lower interest than student loans.
Emergency Reserves
Bolster your savings account for business opportunities or safety.
The Math: Personal Loan vs. Cash Out
Personal Loan ($50k)
- Rate: 11.99%
- Term: 5 Years
- Monthly Pmt: $1,112
- Tax Deductible? No
Cash-Out Refi ($50k)
- Rate: 6.50%
- Term: 30 Years
- Monthly Cost: $316
- Tax Deductible? Likely Yes*
*Consult your CPA regarding tax deductibility of mortgage interest used for home improvements.
Common Questions
How much cash can I take out?
In California, you can typically borrow up to 80% of your home's appraised value. If you are a veteran using a VA loan, you may be able to go up to 100%.
Is the cash taxable income?
Generally, no. Proceeds from a cash-out refinance are considered a loan, not income, so they are typically tax-free. (Consult a tax professional).
Will my rate go up?
If your current rate is historically low (e.g., 3%), your rate on the new loan will likely be higher. However, we analyze the "Blended Rate" to see if the cash benefits outweigh the rate increase.
Ask Frank
"I'll help you calculate your max cash-out amount in 5 minutes."