• The loan: $240,000 ($3 hundred,000 family worthy of * .80 mortgage-to-value)

• Take $100,000 and pay back the existing real estate loan equilibrium
• Found $140,000 once the a lump-share dollars percentage

Because of this, brand new home loan of $240,000 would consist of brand new $100,000 on fresh loan’s remaining harmony additionally the $140,000 you obtained just like the bucks.

Loan-to-value of 50%

Imagine if you to definitely although the lender commonly give you 80% of your own residence’s value, you simply require $50,000. Finances-aside refinance will have the second financial details:

• The newest mortgage: $150,000 ($three hundred,000 domestic really worth * .50 financing-to-value)

• Get $100,000 and you will repay the current home loan harmony
• Discover $fifty,000 while the a swelling-sum cash commission

This means that, new home mortgage away from $150,000 perform put new $100,000 on the completely new loan’s remaining balance as well as the $50,000 you gotten just like the bucks.