Cash-Out BasicsQuestion 5
How Much Cash Can I Get from a Cash-Out Refinance in Houston?
The amount depends on your property's appraised value, existing mortgage balance, and maximum LTV. On a $300K Houston property with $180K owed at 75% LTV, you'd get about $40K after costs.
Cash-out proceeds are a function of three variables: property value, current loan balance, and your lender's maximum LTV ratio.
- Formula: (Appraised Value × Max LTV) – Current Mortgage Balance – Closing Costs = Cash Proceeds
- Example 1: $300,000 value × 75% LTV = $225,000 new loan – $180,000 existing balance – $6,000 closing costs = $39,000 cash
- Example 2: $250,000 value × 70% LTV = $175,000 new loan – $120,000 existing balance – $5,000 costs = $50,000 cash
- Maximizing proceeds: Higher property value (from renovation or appreciation), lower existing balance, and higher LTV allowance all increase your cash-out.
Bottom Line
Run the numbers specific to your Houston property. The more equity you've built (through appreciation, mortgage paydown, or forced equity via renovation), the more cash you can access.