Cost to Cash-Out Refi (%)
Estimated percentage cost to execute a cash-out refinance (industry standard 8%).
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Cost to Cash-Out Refi (%) Formula
8% of equity (industry standard)
Why It Matters
Knowing the cost to refinance helps you decide whether pulling equity out makes financial sense. If you can deploy the extracted equity at a higher return than the 8% cost, refinancing creates value. If not, the equity may be better left in place.
Detailed Explanation
The cost to cash-out refinance includes origination fees, appraisal, title insurance, recording fees, and other closing costs. The industry rule of thumb is approximately 8% of the equity being accessed, though actual costs vary by lender and market.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Total Equity Current
2Current equity position (property value minus loan balance).
Equity From Appreciation (Year 1-5)
VCumulative equity gained from property value appreciation over 5 years.
Equity From Loan Paydown (Year 1-5)
VCumulative equity built from mortgage principal payments over 5 years.
Total Wealth Building Year 1
WCombined cash flow, appreciation, and principal paydown in Year 1.
Total Wealth Building Year 5
XCumulative wealth created from all sources over 5 years.
Net Worth Impact Year 1
WTotal impact on your net worth from this property in Year 1.
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