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Cash Out Refinance Rates

Author: Finance Editors

 

Compare national cash out refinance rates for FHA, 30 year, 20 year, 15 Year, ARMs and VA loans by credit score and for credit unions, banks and online lenders.

 
 

Cash Out Refinance Rates –

 

Real cash out refinance rates, not teasers. The rates below are provided by homeowners members throughout America who refinanced their mortgage very recently with a cash-out. The rates are not the same as what you see online elsewhere since they’re not promo or teaser rates. They may be a little below or higher what you see on other sites but they are real rates homeowners like you recently received.

 
 
Credit Score
720 - 850690 - 719620 - 689
Nationally6.93%7.05%7.18%
Credit Unions6.53%6.65%6.88%
Online lenders6.63%6.75%6.98%
Banks6.93%7.05%7.18%
30 year fixed rate6.93%7.05%7.18%
30 year fixed rate FHA6.39%6.52%6.64%
30 year fixed rate VA7.16%7.29%7.41%
30 year fixed Jumbo6.50%6.63%6.75%
20 year fixed rate6.73%6.85%6.98%
15 year fixed rate6.21%6.33%6.46%
10 year fixed rate6.13%6.26%6.39%
10 year ARM6.80%6.93%7.05%
7 year ARM6.64%6.76%6.89%
5 year ARM6.60%6.73%6.86%
3 year ARM7.70%7.82%7.95%
30 Year Cash-Out Refinance Rates by State
Alabama6.97%7.09%7.22%
Alaska6.88%7.00%7.13%
Arizona6.93%7.05%7.18%
Arkansas6.83%6.96%7.08%
California6.80%6.93%7.05%
Colorado6.93%7.05%7.18%
Connecticut6.96%7.09%7.21%
Delaware6.75%6.88%7.00%
Florida6.90%7.03%7.15%
Georgia6.93%7.05%7.18%
Hawaii7.05%7.18%7.30%
Idaho7.04%7.17%7.29%
Illinois6.97%7.09%7.22%
Indiana7.07%7.20%7.32%
Iowa7.16%7.29%7.41%
Kansas7.09%7.22%7.34%
Kentucky6.92%7.04%7.17%
Louisiana6.83%6.96%7.08%
Maine6.81%6.94%7.06%
Maryland6.88%7.00%7.13%
Massachusetts6.89%7.02%7.14%
Michigan6.91%7.04%7.16%
Minnesota6.97%7.09%7.22%
Mississippi6.99%7.12%7.24%
Missouri6.93%7.05%7.18%
Montana7.15%7.28%7.40%
Nebraska7.05%7.18%7.30%
Nevada6.93%7.06%7.18%
New Hampshire7.07%7.20%7.32%
New Jersey6.95%7.08%7.20%
New Mexico6.95%7.08%7.20%
New York6.81%6.94%7.06%
North Carolina6.92%7.04%7.17%
North Dakota6.87%7.00%7.12%
Ohio6.97%7.09%7.22%
Oklahoma7.30%7.43%7.55%
Oregon6.85%6.98%7.10%
Pennsylvania6.84%6.97%7.09%
Rhode Island6.85%6.98%7.10%
South Carolina6.99%7.12%7.24%
South Dakota6.79%6.92%7.04%
Tennessee6.92%7.04%7.17%
Texas6.99%7.12%7.24%
Utah7.01%7.14%7.26%
Vermont7.09%7.22%7.34%
Virginia6.98%7.11%7.23%
Washington6.85%6.98%7.10%
West Virginia7.03%7.16%7.28%
Wisconsin6.98%7.11%7.23%
Wyoming6.83%6.96%7.08%

Source: MFP’s Community Home Refinance Rates Survey of community members in the last 30 days.

 
 
 
 
 
 

Cash Out Refinance Rates by State 

 

Need precise rates in your state? You can see refinance rates in your state by selecting your state below. You’ll also find rates by lenders (credit unions, banks and online lenders) and by credit scores for all main refinance terms.

 
 
 
 
 
 
 
 
 
 

What’s a Cash-out refinance

 

Borrow more than you owe and pocket the difference. This type allows you to tap into your home equity by taking out a new mortgage for more than your current balance. The extra money can be used for various purposes, but remember that you’re essentially resetting your loan and potentially extending the time until you’re mortgage free.

 
 
 
 
 

More Home Loan Information:

Refinance Calculator 

FHA Loan Refinance

Home Improvement Loans

Home Equity Loan & HELOC 

Home Equity Loan Calculator

Loans Comparison Calculator: Heloc, Cash-Out, Home Equity, Renovation.

More Resources for Homeowners.

 
 
 
 
 
 

Cash-Out Refinance: Is It Worth It?

 

A cash-out refinance can be tempting – who doesn’t want extra cash? But remember:

 
  • You’re increasing your loan amount
  • Your monthly payments might go up
  • You’re tapping into your home equity
 

Consider alternatives like home equity loans or HELOCs before committing.

 
 
 
 
 
 

What Affects Your Cash-Out Refinance Rate

 

Credit Score:

 
  • 740+: Best available cash-out rates
  • 690-739: Good rates with most lenders
  • 620-689: Standard rates, fewer lender options
  • Below 620: Very limited options for cash-out specifically, even if you’d qualify for a rate-and-term refinance
 

Loan-to-Value (LTV):

 
  • 60% LTV or lower: Best pricing, lowest rate add-ons
  • 60-70% LTV: Still competitive pricing
  • 70-80% LTV: Standard cash-out pricing, at or near the program maximum for conventional and FHA
  • Above 80% LTV: Only available through VA cash-out for eligible veterans
 

Cash-Out Pricing Add-On:

 
  • Cash-out refinances carry a rate add-on compared to a standard rate-and-term refinance, typically 0.125% to 0.375% higher depending on your LTV and credit score
 

MFP Tip: Because cash-out rates run higher than rate-and-term refinance rates, only borrow what you actually need. Pulling extra “just in case” cash costs you in rate for the life of the loan.

 

 
 

What is a Cash-Out Refinance?

 

A cash-out refinance replaces your current mortgage with a new, larger loan and gives you the difference in cash at closing. You’re borrowing against the equity you’ve built, not taking out a second loan on top of your first mortgage.

 

How It Works

 

Your new loan pays off your existing mortgage balance in full. Whatever is left after that payoff, minus closing costs, comes to you as cash. You then make one monthly payment on the new, larger loan, just like you did before.

 

Because you’re resetting your loan, a cash-out refinance can extend your payoff timeline even if your rate improves. Run the full amortization, not just the monthly payment, before deciding.

 
 
 
 
 
 

Cash-Out Refinance LTV Limits by Loan Type

 
Loan Type Maximum LTV Wait Time (aka seasoning)
Conventional 80% 6 months of ownership from the deed recording date
FHA 80% 12 months of owner occupancy as your primary residence, plus an on-time payment history
VA Up to 100% (most lenders cap at 90-95%) No standard agency wait time when converting from another loan type. Refinancing an existing VA loan into a new VA loan requires 210 days and 6 payments
Jumbo 70-75% 6-12 months, varies by lender. No agency standard
 

MFP Tip: VA cash-out refinances allow the highest LTV of any program, but individual lenders often set their own lower cap. Ask directly what LTV a lender will actually approve, not just what VA guidelines technically allow.

 

 
 

Cash-Out Refinance vs. Rate-and-Term Refinance

 

Purpose:

 
  • Cash-out: Access home equity as cash while refinancing
  • Rate-and-term: Lower your rate or change your loan term, no cash back
 

Rate:

 
  • Cash-out: Higher rate, typically 0.125-0.375% above rate-and-term pricing
  • Rate-and-term: Lower rate for the same credit profile and LTV
 

Maximum LTV:

 
  • Cash-out: 80% for conventional and FHA
  • Rate-and-term: Up to 97% for conventional, 97.75% for FHA
 

Best For:

 
  • Cash-out: Debt consolidation, home improvements, major expenses
  • Rate-and-term: Lowering your payment or switching from an ARM to a fixed rate
 
 
 
 
 
 

Cash-Out Refinance vs. HELOC vs. Home Equity Loan

 

Cash-Out Refinance: Replaces your entire first mortgage with a new, larger one at a new rate. Best when your current rate is close to or above today’s rates.

 

Home Equity Loan: A separate, fixed-rate second loan on top of your existing mortgage. Best when you want to keep a low first mortgage rate untouched.

 

HELOC: A revolving line of credit secured by your equity, usually with a variable rate. Best for ongoing or uncertain expenses rather than a single lump sum.

 

MFP Tip: If your current mortgage rate is well below today’s rates, a home equity loan or HELOC almost always beats a cash-out refinance, since you keep your low rate on the original balance. See our Home Equity Loan and HELOC rates to compare.

 

 
 

Pros and Cons of Cash-Out Refinance

 

Benefits

 

Lower Rate Than Alternatives: Mortgage rates are typically lower than personal loan or credit card rates for the same amount of cash.

 

Single Monthly Payment: One loan, one payment, instead of stacking a second lien on top of your first mortgage.

 

Large Loan Amounts Possible: Access a large amount of equity at once, useful for major renovations or debt payoff.

 

Potential Tax Benefit: Interest may be deductible when funds are used for home improvements. Confirm your specific situation with a tax professional.

 

Fixed Rate Option: Choose a fixed-rate term and lock in predictable payments on the full new balance.

 

Cons

 

Higher Rate Than Rate-and-Term: You’ll pay a rate premium compared to refinancing without cash out.

 

Resets Your Loan Term: Extending back to a 30-year term can mean paying more interest over time, even at a lower rate.

 

Closing Costs Apply: Typically 2-5% of the loan amount, same as a purchase mortgage.

 

Reduces Home Equity: You’re borrowing against ownership you’ve built, which lowers your cushion if home values drop.

 

Requires Full Underwriting: Unlike a HELOC, you’ll go through a complete appraisal and income verification process.

 
 
 
 
 
 

When to Get a Cash-Out Refinance

 

Your Current Rate is Close to Today’s Rates: If refinancing won’t cost you much in rate, tapping equity at the same time makes sense.

 

You Have a Large, One-Time Expense: Major home renovations, medical bills, or debt consolidation where you need the full amount upfront.

 

You’re Consolidating Higher-Interest Debt: Rolling credit card or personal loan balances into your mortgage can lower your overall interest cost, if you don’t run the other balances back up.

 

You Want One Fixed Payment: Instead of managing a HELOC’s variable rate or a separate home equity loan payment.

 

You Have Significant Equity Built Up: Cash-out requires staying at or under 80% LTV for conventional and FHA, so you need equity to work with first.

 

MFP Tip: If your current rate is well below today’s market rate, compare the total cost of a cash-out refinance against a home equity loan before deciding. Resetting a low rate on your full balance can cost more long term than keeping it and adding a second loan.

 

 
 

How to Qualify for a Cash-Out Refinance

 

Credit Score:

 
  • 620+ typically required for conventional cash-out
  • 580+ possible for FHA cash-out, though many lenders set higher overlays
  • No official VA minimum, though most lenders require 580-620
 

Loan-to-Value:

 
  • Must stay at or under 80% LTV for conventional and FHA
  • Up to 90-100% LTV possible for eligible VA borrowers, lender dependent
 

Wait time:

 
  • Conventional: 6 months of ownership from the deed recording date
  • FHA: 12 months of owner occupancy plus an on-time payment history
  • VA: No standard agency wait time when converting from another loan type; 210 days and 6 payments when refinancing an existing VA loan
 

Debt-to-Income Ratio:

 
  • Conventional: Typically capped at 45%
  • FHA: Up to 43-50% depending on compensating factors
  • VA: Focuses on residual income rather than a hard DTI cap
 

Documentation:

 
  • Recent pay stubs and W-2s or two years of tax returns if self-employed
  • Current mortgage statement
  • Full appraisal to confirm current value
  • Bank statements to verify assets
 

MFP Tip: Because cash-out refinances require a full appraisal, home value shifts in your area can change how much cash you’re actually able to access between when you apply and when you close.

 
 

Not sure what paperwork to gather? See our full mortgage documents checklist covering refinance and special situations.

 
 
 

FAQs: Cash-Out Refinance

 

How much cash can I actually take out?

 

Your maximum cash-out amount is your home’s appraised value multiplied by your program’s LTV limit, minus your current mortgage balance and closing costs.

 

Example: On an $400,000 home with an 80% LTV limit:

  • Maximum new loan amount: $320,000 (80% of $400,000)
  • Minus current mortgage balance: $200,000
  • Available before closing costs: $120,000
  • Minus estimated closing costs: About $10,000
  • Cash to you at closing: About $110,000
 
 

Is a cash-out refinance a good idea to pay off debt?

 

It can lower your overall interest cost if you’re moving high-interest credit card or personal loan debt into a mortgage rate. The risk is running the paid-off balances back up while also carrying a larger mortgage.

 

Does a cash-out refinance hurt my credit score?

 

There’s typically a small, temporary dip from the credit inquiry and new account, similar to any mortgage refinance. It’s not treated differently than a rate-and-term refinance for credit purposes.

 

Can I do a cash-out refinance right after buying my home?

 

Not through standard channels. Conventional loans require 6 months of ownership, and FHA requires 12 months of owner occupancy. An exception exists for cash buyers under Fannie Mae’s delayed financing rule.

 

Is the interest on a cash-out refinance tax deductible?

 

It can be, if the funds are used to buy, build, or substantially improve the home securing the loan. Cash used for other purposes, like debt consolidation, generally isn’t deductible. Talk to a tax professional about your specific situation.

 

MFP Tip: Get quotes for both a cash-out refinance and a home equity loan or HELOC before deciding. The right choice depends heavily on how your current mortgage rate compares to today’s rates.