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Cash-Out Refinance

Unlock Your Home’s Equity. Fund What Matters.

You've built equity. Now put it to work. Armed Forces Bank's Cash-Out Refinance turns your home's value into cash you can use — for home improvements, debt payoff, education, and more.
 
Subject to credit approval. Terms and conditions apply. Fees apply.

What Is a Cash-Out Refinance?

A cash-out refinance is a type of mortgage refinance that lets homeowners replace their existing home loan with a new, larger loan – and pocket the difference as cash. Because your home has likely grown in value since you bought it, the equity you've built up can be converted into liquid funds you use however you choose.

Unlike a home equity line of credit (HELOC), a cash-out refinance is a single new mortgage — not a second loan.

Here's how it works: your new loan pays off your current mortgage in full. Any amount above that balance — up to your home's available equity — comes to you as a lump sum at closing. You'll then make monthly payments on the new loan, which may come with a different interest rate and term than your original mortgage.

Cash-out refinance rates vary based on your credit profile, loan-to-value ratio, loan term, and current market conditions. Contact a loan advisor for a personalized quote based on your situation.

Use our Mortgage Refinance Calculator to estimate your new payment.

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 What You Get with Our Cash-Out Refinance

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Dedicated Loan Advisor
 
A military-experienced mortgage advisor guides you every step of the way, from application through closing.
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Competitive Rates
 
We offer competitive cash-out refinance rates on both fixed and adjustable-rate mortgages.
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Fast Approvals
 
Our streamlined process is designed to get you a decision quickly without the runaround.
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Cash in Your Account
 
Receive your funds at closing and use them however your financial mission demands.
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Primary, Second & Investment
 
Eligible for primary residences, second homes, and investment properties (terms apply).
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FDIC-Insured
 
Armed Forces Bank is FDIC insured and backed by the full faith and credit of the U.S. Government.














 

How a Cash-Out Refinance Works

1. Apply Online or With a Loan Advisor

Start your application in minutes online or connect with a dedicated Armed Forces Bank loan advisor who understands the military community.

2. Home Appraisal & Underwriting

We'll order a home appraisal to confirm your property's current value, then verify your income, credit, and employment through underwriting.

3. Lock Your Cash Out Refinance Rate

Once approved, lock in your cash-out refinance rate to protect yourself from market fluctuations while your loan is processed.

4. Close & Receive Your Funds

Sign your closing documents. Your existing mortgage is paid off, and the remaining equity is deposited directly into your account — ready to deploy.

Ways to Use Your Cash-Out Funds

  • Home Improvements - Remodel a kitchen, add a bathroom, upgrade HVAC, or make accessibility modifications to increase comfort and home value.
  • Debt Consolidation - Pay off high-interest credit cards, personal loans, or other debts — replacing them with one lower-rate mortgage payment.
  • Education Expenses - Fund college tuition, trade certifications, or professional development for yourself or a family member.
  • Emergency Fund - Build a financial buffer for unexpected expenses such as medical bills, major repairs, or career transitions.
  • Major Purchases - Cover large, planned expenses like a vehicle, investment in a business, or other significant financial goals.

Cash-Out Refinance Eligibility

  • Minimum credit score of 620 FICO
  • Maximum loan-to-value (LTV) of 80%
  • Maximum debt-to-income (DTI) ratio of 50%
  • Must own home for 6+ months
  • If paying off existing first lien, that mortgage must be seasoned 12+ months
  • Eligible for primary residences, second homes, and investment properties

Why Choose Armed Forces Bank for Your Cash-Out Refinance?

One of the Best VA home loan lenders - Armed Forces Bank consistently ranks as a top bank for the Army, Navy and Air Force.

Over 120 years of serving the military - With approximately 75% of our team being affiliated with the military in some way, we express our appreciation for our military through our own service, intimately understanding the unique challenges that come with the military lifestyle.

 

Ready to Put Your Equity to Work?
Our loan advisors are standing by to help you understand your options and walk you through every step of the cash out refinance process.

or Find a Loan Advisor

 

Already applied? Log in to upload documents or see the status of your application.          
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Cash-Out Refinancing Resources


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Subject to credit approval.  The Cash-Out Mortgage Refinance loan product has specific terms and conditions.  Fees apply. Max 80% LTV, Min 620 FICO, Max DTI of 50%, Eligible for Primary/Second Home/Investment Properties.  Must own home 6 months or greater or if paying off existing first lien mortgage then lien being paid off must be seasoned at least 12 months.