What if the financial tend to lend your 80% of the residence’s value This new loan: $240,000 ($three hundred,000 family well worth * .80 loan-to-value) Grab $100,000 and you can pay off current mortgage equilibrium Receive $140,000 because the a lump-sum cash commission This means that, the fresh mortgage off $240,000 perform add the $100,000 in the brand new loan’s left harmony while the $140,000 your acquired while the cash. Loan-to-worth of fifty% Imagine if you to even when the bank have a tendency to lend you 80% of your residence’s well worth, you merely require $50,000. Your money-out re-finance might have the second monetary info: The mortgage: $150,000 ($300,000 household value * .fifty mortgage-to-value) Just take $100,000 and pay the existing home loan harmony Located $50,000 as the a lump-contribution cash percentage This is why, the newest home mortgage off $150,000 create integrate the fresh new $100,000 regarding the completely new loan’s left balance and the $50,000 you acquired due to the fact cash.