Cash-Out or Cash Back Refinance
This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.
Check out if refinancing makes sense for you by using our Mortgage Refinance Comparision Calculator…
The results provided by this mortgage calculator are for informational and illustrative purposes only. They do not constitute a commitment to lend or an offer of credit. Actual loan terms, interest rates, and monthly payments may vary based on factors such as credit profile, loan product, property location, and other considerations. All estimates are subject to underwriting approval and may not include additional costs. Borrowers should carefully review their financial situation and consult with a licensed mortgage professional before making any loan decisions.
$
each month
$
in interest over the life of the loan
Savings over time
(total interest saved - cost of refinancing)
Year 1 $0
Breakeven in
Current Mortgage
Current Balance
Current Interest Rate
Monthly Payment
Payoff Date
Total Interest
New Mortgage
Refinanced Loan Amount
Refinanced Interest Rate
Monthly Payment
Payoff Date
Total Interest
Interest Savings
Refinance Fees
New Monthly Payment:
Loan amount
Cash out
Cash in
Refinance fees
Roll Fees Into New Loan?
Total loan amount
Interest rate
Loan term
Monthly savings
Timeframe
Total Interest Savings
This is the sum of all the interest you will save over the life of the loan after refinancing.
Year 1 $0
Monthly Savings Breakdown
Current
New
Savings
$1,703
-
$3,065
=
-$1,362
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: (the amount borrowed)
- Interest payments: (the cost of borrowing)
By refinancing the consumer’s existing loan, the consumer’s total finance charges may be higher over the life of the loan.
Is refinancing right for you?
Here are the most common reasons for refinancing:
- You have a fixed-rate mortgage with a high interest rate, and are looking to get a lower interest rate
- You have an adjustable rate mortgage (ARM) and are looking to get a fixed rate
- You have two mortgages and would like to consolidate them into one
- You have a long-term loan and would like a shorter-term loan so you can pay it off and build equity more quickly
- You have a short-term loan and would like a longer-term loan so as to reduce your monthly payments
- You want to move from an interest-only mortgage to a loan that pays down the principal
- You want some extra cash to make a purchase or to pay off other debt
Benefits of refinancing
Refinancing makes sense if you fit into one of the categories listed above. If you’re curious about your specific scenario, reach out today and we’ll take a look!
Four common refinancing options:
Lower Fixed-Rate Loan
If you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a low fixed-rate loan. Also, if you have an ARM, you might consider this option in order to get the security of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way; but if you get a low fixed-rate loan, then you lock that low rate in for the life of the loan. This option is a good choice if you are not planning on moving within the next five years.
Shorter-Term Loan
If your main goal is to quickly build up equity and to pay off your mortgage sooner, then the shorter-term loan is probably your best choice. A lot of times, if you refinance to this type of loan, your monthly payments will be higher, but you will pay substantially less interest and your mortgage will be paid off sooner. Also, you would benefit from a larger tax deduction on interest if you move from a 30-year fixed to a 15-year fixed loan. There are some cases, however, in which you may be able to refinance to a shorter-term loan without raising your monthly payment -if you’ve had your current mortgage for enough years.
Longer-Term Loan
If your current monthly payments are higher than is comfortable for your financial situation, then you might want to consider refinancing to a longer-term loan. This will result in a decrease in your monthly payments, since you will have more time to repay the loan. Examining your current mortgage and knowing how you would like to improve it are the first steps you need to take when starting the refinancing process. Once you know this, you can choose the option that will best help you achieve your goals.
About Us
OM Mortgage, LLC LLC
NMLS #1972491
At OM Mortgage, LLC, you truly get the best of both worlds. As both a lender and a broker, we give you direct access to competitive in-house lending options while also offering the flexibility to shop the market with multiple wholesale lenders. This means more choices, better terms, and solutions tailored to your unique needs.
We are a multi-state residential mortgage company committed to one thing: YOU. Our promise is simple—putting you and your family first to ensure you receive the right mortgage product, fair fees, and the kind of service and advice that builds lasting relationships.
With over 350 years of combined experience, our team has guided clients through every market cycle. That perspective has made us a lifetime mortgage partner—the one that will be there when your children buy their first home, just like mom and dad did.
We approach lending with our proven S.M.A.R.T. communication process:
- Secure. Your information is always protected with the highest standards.
- Modern. We use the latest mortgage technology for faster, smarter solutions.
- Available. Our team is here for you 24/7/365.
- Reliable. No matter the situation, you are always our priority.
- Transparent. Honesty and integrity aren’t just words—they’re the way we do business.
By refinancing the consumer’s existing loan, the consumer’s total finance charges may be higher over the life of the loan.
