Cash-out refinance tax – is there tax to pay on that cash?


There shouldn't be tax expected on your cash after a cash-out refinance if your new mortgage exceeds the market value of the property, which it probably does. Just the opposite, you may get to deduct the interest from your income taxes in most of the cases.


However, it will be best if you consult your tax advisor in that case. It is in fact loan money that has to be paid back and is not considered income, but you really should better contact a tax specialist with respect to cash-out refinance taxes.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: