Put your equity to work.

A cash-out refinance replaces your mortgage with a new, larger loan and pays you the difference at closing. On a $700,000 DC home with $350,000 owed, refinancing into $560,000 puts roughly $210,000 in hand, minus closing costs. One payment going forward.

Most conventional cash-out refinances cap the new loan at 80% of appraised value — $560,000 on a $700,000 home. Subtract what you still owe and the remainder is your maximum. VA cash-out can go higher for eligible veterans, though many lenders cap it at 90%.

No — it's loan proceeds, not income, so it never appears on a 1099. Interest on the cashed-out portion is generally deductible only if you use the funds to buy, build, or substantially improve the home securing the loan. Check with your tax professional.

No — DC fully exempts residential refinances from recordation tax, including the entire loan on a cash-out. The exemption covers residential property with 5 or fewer dwelling units and is claimed with a one-page notarized Security Affidavit your settlement agent records with the deed of trust (D.C. Code § 42-1102(21)). So on a $500,000 cash-out refinance, you pay $0 in recordation tax — not the $7,250 many homeowners expect. We make sure the affidavit is on the closing checklist.

Most conventional cash-out programs look for about 620 or higher, and stronger scores earn meaningfully better pricing. FHA and VA options can work with lower scores. Lenders also weigh your debt-to-income ratio and the equity you leave behind.

Typically somewhat, yes — lenders price cash-out loans for the added risk. The gap depends on your credit score and how much equity you leave in the home; taking less than the maximum often prices better. We compare cash-out pricing across our lender network.

It usually comes down to your current rate. Below today's market, a home equity loan or HELOC lets you borrow without touching that low first mortgage. At or above today's market — common for 2023-and-later DC buyers — a cash-out can do both at once. We price both.

Most conventional programs require at least six months of ownership; some scenarios require twelve. VA and FHA set their own seasoning rules. If you're inside the window, a home equity product may bridge the gap — ask before you rule anything out.

Anything. Common DC uses are renovations, adding a rental unit, consolidating higher-interest debt, education, or an investment property. The cash is secured by your home, so it's best deployed toward things that build value or retire more expensive debt.

Plan for roughly 2-5% of the loan amount, covering lender fees, appraisal, and title insurance. Two costs you can skip in DC: recordation tax is $0 on residential refinances (claimed with a one-page affidavit at closing), and there's no transfer tax since the property isn't changing hands. Closing costs can often be financed into the new loan rather than paid out of pocket — we'll show both ways so you can compare the true cost.

Only if you choose a 30-year term — the term resets to whatever you pick, and that's a choice. Several years into a 30-year loan, a 20- or 15-year term can keep your payoff date on track while still putting cash in hand. We'll model each.

Roughly 30 to 45 days from application to closing. The appraisal is usually the pacing item; condo buildings can add time for document review. Having statements, income documents, and insurance ready early keeps things moving — we'll send a checklist up front.

District Mortgage is a licensed mortgage broker, not a bank or direct lender. We do not fund loans with our own money. We take your application and shop it across our wholesale lender network, so the lenders compete for your loan and you take the winning offer. NMLS #2819502 — verify us at nmlsconsumeraccess.org.

No. We are licensed in the District of Columbia only, so the property has to be in DC. We cannot accept an application or a pre-qualification request for a property in Maryland, Virginia, or any other state. If your property is elsewhere, nmlsconsumeraccess.org will show you licensed originators in that state.

Our rates page is the canonical source for our pricing and carries an effective date, the APR alongside every rate, and the borrower assumptions each example is priced on. Rates shown anywhere on this site are illustrative examples, not offers of credit or commitments to lend, and pricing moves daily. Anyone quoting a rate from us should cite the effective date it was published with.