Reposition calculator: what a cash-out refinance really costs per month
Your mortgage payment was priced off your original loan, not today’s balance. This calculator shows what that means: how much equity a refinance unlocks, what it does to your monthly payment, and what the freed capital could earn.
What the cash you pull out could earn each year if redeployed into another property. Browse the marketplace for real numbers. Illustrative only.
Cash-out is capped at 75% of property value and typically needs about 3 years of seasoning (confirm with your lender). Interest-only uses a 10-year IO period. Rate is not a Lineage quote; edit it to match yours. Estimates only, not a loan offer.
Estimates only — not a loan offer, rate quote, or financial advice. Whether a cash-out refinance makes sense depends on your rate, your goals, and your reserves. Run it with your Lineage consultant and your tax advisor before you act on any of these numbers.
The +$40 number is real, but it isn’t the whole story. Three things are happening under it. Your total debt went from $151,288 back up to $200,000. Your rate went from 4.75% to 6.5% on the whole balance, not just the new money. And during the interest-only period, principal paydown is paused, so that return switches off until the IO period ends or you refinance again. The reposition trades those for liquid capital and whatever that capital earns. For investors buying cash-flowing property, that trade often wins. It’s still a trade, and it deserves the same math you’d run on any deal. Your consultant will walk through both sides with actual quotes.
Estimates only, not a loan offer, rate quote, or financial advice. Actual terms depend on credit, property, location, seasoning, and market conditions. DSCR loans through Lineage are originated by our lending partner.
How this works
A fixed mortgage payment is set once, on the day you close, against your original loan amount. It never re-prices. So after years of paying it down, you’re still making a payment sized for a balance you no longer carry. The gap between that original balance and today’s balance is equity that’s sitting still.
A cash-out refinance re-prices the loan from today’s balance. Because the new payment starts from where you actually are, you can pull a large amount of equity out while the monthly payment barely moves, especially with an interest-only structure. That freed capital is what funds the next down payment. The trade, in full, is in the “what it really costs” section above: more total debt, a higher rate on the whole balance, and paused principal paydown during the IO period. Selling instead of refinancing? The 1031 route. How repositioning fits a growing portfolio.
Common questions
Fixed mortgage payments are calculated once, on the original principal, and never change. Pay a $200,000 loan down to $150,000 and you still make the $200,000 payment. That's the mechanic this calculator is built around: a refinance re-prices from today's balance, which is what makes room for cash-out at a similar payment.
Yes. DSCR cash-out refinances qualify on the property's rent, the same way a purchase loan does. Most programs cap the new loan at 75% of the property's value.
It's the structure that keeps the payment closest to what you pay today, which is why it's the default here. The trade is that principal paydown pauses during the IO period and the payment steps up after. Run both structures in the calculator and compare.
Most Lineage investors use it as the down payment on the next rental, which is the reposition play: the same equity working in two properties instead of sitting in one. Others use a 1031 exchange instead, selling outright and deferring the gains. Different tools for different situations.
No. It’s arithmetic on your inputs. Whether a reposition makes sense depends on your rate, your goals, and your reserves. That’s a conversation with your consultant and your tax advisor.