Cash-Out Refinance on Long Island: How Much Can You Take Out?

A cash-out refinance turns part of your home’s equity into cash, and you don’t have to sell to get it.

If you’ve owned your home for a while, there’s a good chance it’s worth a lot more than you owe. Here’s what that gap could mean in cash, with real Long Island numbers.

What is a cash-out refinance?

A cash-out refinance replaces your current mortgage with a bigger one. The new loan pays off the old one, and you get the difference in cash when the loan funds. Lenders cap the new loan at a share of your home’s value, and you can use the cash for anything.

The good news is you end up with one mortgage and one payment, not a second bill on top of the first.

How much cash can you get from a cash-out refinance?

Start with what your home is worth and multiply by the lender’s cap. Subtract what you owe on every mortgage and home equity line on the home, including any line you keep. What’s left is your cash before closing costs.

Here are the usual caps. Some lenders set lower ones.

• Conventional, a home you live in: up to 80% of the value for one unit, 75% for two to four units
• Conventional, a second home: up to 75%
• Conventional, a rental: up to 75% for one unit, 70% for two to four units
• FHA, a home you live in: up to 80%
• VA, a home you live in: up to the full value

Say your Nassau home is worth $860,000, the September 2026 single-family median per OneKey MLS, and you owe $400,000. At an 80% cap, the new loan can go up to $688,000. Pay off the $400,000, and about $288,000 is left before closing costs.

In Suffolk, the median was $740,000. With $300,000 owed, that works out to about $292,000 at the same cap.

Prices have climbed since September 2023, when the Nassau and Suffolk medians were $749,500 and $615,000. So you may have more equity than you think. Just remember the lender goes by your appraisal, not the county numbers.

Cash-out refinance requirements: what do you need to qualify?

• Some equity left over. On conventional and FHA cash-outs, you keep at least 20% of your home’s value.
• Time in the home. Usually about a year if you bought with a mortgage, and it can be less if you paid cash (see the FAQ below).
• Income for the new payment. The lender checks that your income covers the bigger loan plus your other debts.
• Credit. Each lender sets its own minimum score, and a higher score usually gets you a better rate.
• An appraisal. Plan on one. Some conventional cash-outs can skip it, but usually not co-ops, two- to four-family homes or houses worth $1 million or more. On Long Island, that covers a lot of homes.

Self-employed? Here’s how lenders count self-employed income. I also offer bank statement and 1099 loans through lenders I work with, and they can work for a cash-out too.

What can you use a cash-out refinance for?

Pretty much anything. There’s no rule on how you spend it.

• Home improvements. A new roof, a kitchen, a dormer or a finished basement. The money goes right back into your home.
• Paying off higher-cost debt. Rolling card balances into your mortgage can leave you with one payment instead of several. Just remember that debt is now tied to your house.
• Your next place. Want to buy before you sell? Compare a cash-out with a bridge loan and other options. If you go the cash-out route, do it before you list the house.

My advice: take what you need, not the most you can get. It’s borrowed against your home, so pick an amount that leaves you a payment you’re comfortable with.

Cash-out refinance vs HELOC: which is better?

Is your rate nothing special, or would you rather not juggle two loans? Then a cash-out refinance is usually simpler.

Got a low rate you’d hate to give up? Then a home equity line of credit (HELOC) can make more sense. It’s a second loan on top of your mortgage, so only the new money is at a new rate.

If a cash-out isn’t the right move for you, I’ll tell you straight.

What does a cash-out refinance cost on Long Island?

On Long Island, a cash-out is a full refinance closing, with title fees, attorney fees and often an appraisal. You can usually roll those costs into the new loan, so they come out of your cash instead of your pocket.

A cash-out usually costs more than a plain refinance. How much more depends on your credit and how much of your home’s value you borrow. Your Loan Estimate spells out the rate and the fees before you commit.

If you escrow your property taxes, the new loan usually starts a new escrow account, and your old servicer refunds what’s left in the old one.

Also hoping to lower your rate? The break-even test shows how long the savings take to cover the costs.

How a cash-out refinance works, and how long it takes

Nationally, the average refinance took about five or six weeks to close in March 2026. My refinance timeline has the details.

1. Figure out your number. Decide how much you need. The calculator below is a good place to start.
2. Apply. I compare offers from the lenders I work with. Within a few days you get a Loan Estimate showing the loan amount, the rate and the costs.
3. Appraisal and approval. The lender orders the appraisal, and you get a copy before closing.
4. Sign and get your cash. On a home you live in, the money comes a few days after you sign, once a short cancel period passes.

Cash-out refinance calculator: how much can you take out?

See how much cash your equity could free up. All you need is a rough home value, what you owe and the loan type.

Frequently asked questions