Why does the brand new Va cash-out refinance really works? Information With this particular financial system, you could replace your current old-fashioned or Virtual assistant financing with a great the brand new Virtual assistant loan and be the residence’s kept security into the dollars. Next, you can use the cash for purpose, instance debt consolidation reduction otherwise home improvements. From the refinancing, you can get an alternate Va mortgage to have $300,000 to settle your current mortgage and take $75,000 within the dollars. The level of cash you could potentially take-out relies on several points, including the property value your house, your the financial balance, the new closing costs, in addition to lender’s regulations.