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Fixed-Rate Mortgage Cash-Out Refinance

A fixed rate mortgage has a fixed interest rate that does not change over the life of the loan.

What is a cash-out refinance?

In simple terms, a cash-out refinance replaces your current mortgage with another loan that: 

  • Pays off your current mortgage balance and
  • Is larger because it accesses the available equity in your home to provide additional funds for other purposes.

Fixed-rate mortgage

Features

Benefits 

  • Predictable monthly P&I payments allow you to budget more easily. 
  • Protection from rising interest rates for the life of the loan, no matter how high interest rates go. 
  • May be a good choice if you plan to stay in your home for a long time. 

Considerations

  • Your new loan payments on the cash-out refinance will be higher because you've increased the loan amount by accessing some of the equity in your home. 
  • If the interest rate on the new loan is the same or higher than the interest rate on your old loan, you will pay more interest. 

To help you determine whether a cash-out refinance may help you with your long-term home financing goals, contact your home mortgage consultant.

Talk to us about your refinance goals and options. Get Started

If you are a service member on active duty, prior to seeking a refinance of your existing mortgage loan, please consult with your legal advisor regarding the relief you may be eligible for under the Servicemembers Civil Relief Act or applicable state law.

Principal and interest (P&I) 

The 2 main components of your monthly payment. The principal portion reduces your loan balance, while the interest is your cost for using the principal. Your monthly payments may include taxes and insurance in addition to P&I.