Pay off high-interest debt, fund a renovation, or build your safety net. A cash-out refinance replaces your current mortgage with a new one for more than you owe, and you take the difference in cash at closing.
VA, FHA, and conventional options
Local guidance from a licensed New Mexico originator
Clear numbers before you commit
A cash-out refinance is a brand-new mortgage. It pays off your existing loan, lets you borrow against the equity you have built, and sends the remaining cash to you at closing.
Often the strongest option — allows higher loan-to-value than most programs with no monthly mortgage insurance. A VA funding fee typically applies and can be financed into the loan.
Maximum 80% loan-to-value. Requires 12 months of on-time payments on the existing mortgage. FHA mortgage insurance applies.
For homeowners with at least 20% equity remaining after the cash-out. No mortgage insurance required when the new loan stays at or below 80% LTV.
Program guidelines reflect agency rules and may change. Lender overlays and your individual qualifications determine final terms.
Roll credit cards, personal loans, or medical bills into one lower-rate mortgage payment.
Kitchens, roofs, additions, ADUs, solar — investments that often add value back to the home.
Education, a wedding, a business, or starting a family.
Convert illiquid equity into accessible cash for emergencies or opportunities.
| Item | Typical Requirement |
|---|---|
| Equity in home | At least 20% remaining after cash-out (program dependent) |
| Credit score | 620+ conventional, 580+ FHA, varies for VA |
| Payment history | 12 months on-time recommended |
| Occupancy | Strongest terms on primary residences |
| Property | Single-family, condos, 2–4 unit, manufactured (case by case) |
These are common starting points, not commitments. Your file is reviewed individually.
These are common starting points, not commitments. Your file is reviewed individually.
What your payment looks like after the new loan — not just the rate.
Compare against what the cash is replacing — credit cards, HELOC, personal loan.
Closing costs divided by monthly savings tells you how long until the refi pays for itself.
A new 30-year loan can lower payments but extend total interest paid. We will model both scenarios for you.
Get a free, no-obligation cash-out scenario. We will show you what your equity can do, what it will cost, and whether it is the right move right now.
Most programs cap the new loan at 80% of your home's appraised value. Subtract your current mortgage balance and closing costs from that figure to estimate available cash. VA-eligible borrowers may qualify for higher limits.
Cash-out rates are typically slightly higher than rate-and-term refinances. Whether your rate goes up depends on your current rate, today's market, your credit, and the loan-to-value.
Under current federal tax law, mortgage interest on cash-out proceeds is generally only deductible when the funds are used to buy, build, or substantially improve the home. Talk to a tax professional.
Most cash-out refinances close in 30 to 45 days from a complete application.
No. Once the loan funds, the cash is yours to use. We do recommend a clear plan, since the loan is secured by your home.
Yes. You can refinance from one program to another. The right move depends on equity, credit, and goals.
Closing costs typically run 2% to 5% of the loan amount and can sometimes be rolled into the new loan. We provide a written Loan Estimate within three business days of application.
Leland Locke brings the same commitment from the fire service into every mortgage he handles.
Clear communication
Fast response times
No hidden surprises
Real guidance — not just rate quotes
You’re not routed to a call center.
You work directly with a professional who understands urgency and accountability.
Not affiliated with or endorsed by any government agency.
Homeowners should understand that refinancing may result in higher finance charges over the life of the loan.
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Firehouse Mortgage LLC, NMLS #2041465. This is not a commitment to lend. All loans subject to credit approval,
appraisal, and program guidelines. Rates and terms vary. Cash-out refinancing increases the total amount financed
and may extend the loan term. Consult a tax professional regarding deductibility. Equal Housing Lender.