Figure Cash-Out Refinance: Replace & Pull Equity
The company cash-out refinance replaces your existing first-lien mortgage with a larger loan, letting you pull the difference out as cash in one transaction.
How a Figure cash-out refinance works
A company cash-out refinance replaces your current mortgage with a new, larger loan from Figure Lending LLC. The new loan pays off your existing mortgage balance in full, and the difference between the new loan amount and your old mortgage balance is disbursed to you as cash.
Example: your home is worth $600,000 and your remaining mortgage is $300,000. A company cash-out refinance up to 80% LTV would let you borrow $480,000. Of that, $300,000 pays off the old mortgage, and the remaining $180,000 (minus closing costs) is cash in your bank account.
Figure cash-out refinance vs. The Figure HELOC
Both these products access home equity, but they differ in important ways:
| Factor | Figure Cash-Out Refi | Figure HELOC |
|---|---|---|
| Lien position | First lien | Second lien (usually) |
| Existing mortgage | Paid off and replaced | Stays in place |
| Interest rate | Based on first-lien mortgage market | Typically higher than first-lien |
| Term | Up to 30 years | 5, 10, 15, or 30 years |
| Best for | Low existing mortgage rate wanted traded for cash | Keep low existing mortgage rate |
When a Figure cash-out refinance makes sense
- Your current mortgage rate is higher than available refinance rates
- You want to consolidate first-lien debt and extract equity in one transaction
- You prefer one mortgage payment rather than mortgage plus HELOC
- You need a very large cash amount (above the $400,000 limit on most HELOC offers)
When to skip the Figure cash-out refinance
- You locked in a sub-4% mortgage rate during 2020 – 2021 — giving that up for cash is expensive
- You only need a modest cash amount that would be cheaper via the HELOC
- You plan to sell the home within the next few years
How much cash can you take out?
Most lenders limit a cash-out refinance by loan-to-value (LTV). Many conventional cash-out loans cap the new loan at about 80% of your home's value, while a Figure HELOC can go up to an 85% combined LTV. The lender sets its own cap by property type, credit score, and occupancy, so confirm the current limit when you check your rate.
The basic math works like this: multiply your home value by the maximum LTV, subtract your current mortgage balance, then subtract closing costs. What is left is the cash you receive.
Cash-out refinance vs. HELOC: a worked example
Here is a hypothetical homeowner with a $500,000 home, a $250,000 mortgage at 3.5%, and a need for $75,000 in cash. The rates below are examples only, not quotes.
| Option | Loans after closing | Monthly payment |
|---|---|---|
| Cash-out refinance | One new $325,000 mortgage at 7.00% for 30 years | $2,162 |
| Keep mortgage + add HELOC | Existing $250,000 at 3.50% plus a $75,000 HELOC at 9.00% for 15 years | $1,123 + $761 = $1,883 |
In this example the HELOC route costs about $279 less per month, because the homeowner keeps the low 3.5% rate on the original $250,000. A cash-out refinance moves the whole balance to today's rate. That trade-off is the single most important factor in choosing between the two. Run your own numbers in our HELOC calculator.
When a cash-out refinance usually wins
- Your current mortgage rate is close to, or higher than, today's rates.
- You need more than a HELOC can provide, such as amounts above what you qualify for on a HELOC.
- You want one fixed payment instead of two separate loans.
- You plan to stay in the home long enough to recover the closing costs.
Costs to budget for
A cash-out refinance is a full mortgage, so expect full closing costs. These commonly include an origination or lender fee, an appraisal or valuation fee, title insurance, recording fees, and prepaid interest, taxes, and insurance. Closing costs on a refinance commonly fall around 2% to 6% of the loan amount. Ask for a Loan Estimate, which lenders must provide within three business days of your application, and compare the "Total Closing Costs" line across offers.
How the application works
- Check your rate. Start with a soft credit check to see estimated terms.
- Submit documents. Expect income verification, a mortgage statement, homeowners insurance, and ID.
- Valuation. The lender confirms your home's value, sometimes with an automated model.
- Underwriting and closing. Review your Closing Disclosure at least three business days before signing.
- Funding. For a primary residence, federal law gives you a three-business-day right to cancel before funds are released.
See the full Figure Loans requirements for credit score, DTI, and property rules.
Tax considerations
Mortgage interest on cash-out funds may or may not be deductible depending on how you use the money and current IRS rules. Speak with a tax professional before assuming any deduction.