Cash-Out Refinance Rates
How cash-out refinance rates are priced, why they cost more than rate-and-term refinances, loan-to-value limits, and alternatives such as home equity loans.
Conventional benchmark: Freddie Mac weekly survey
Week of August 20, 2026Source: Freddie Mac Primary Mortgage Market Survey via FRED, updated August 20, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing. This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
How Cash-Out Refinance pricing relates to this benchmark. Cash-out loans start from the conventional benchmark above and add a cash-out loan-level adjustment that grows with the loan-to-value ratio and with lower credit scores, so the quoted rate is normally above the survey figure.
How Cash-Out Refinance rates are set
A cash-out refinance replaces your current mortgage with a larger loan and pays you the difference at closing. Homeowners use the proceeds for renovations, debt consolidation, education, investment or reserves. Because the entire mortgage is replaced, the new rate applies to the full balance, not just the cash portion.
Cash-out rates are typically higher than rate-and-term refinance rates. Fannie Mae and Freddie Mac apply a specific cash-out pricing adjustment that grows with the loan-to-value ratio and shrinks with higher credit scores. Investors view cash-out loans as slightly riskier because the borrower is increasing debt against the property, and the rate reflects that.
Loan-to-value limits are tighter than for purchases. Conventional cash-out on a primary residence is generally capped at 80 percent of appraised value, FHA cash-out at 80 percent and VA cash-out up to 90 or, at some lenders, 100 percent. Second homes and investment properties have lower limits. An appraisal is almost always required, and most programs require that you have owned the home for at least six to twelve months.
Compare the cash-out refinance against keeping your existing loan and adding a home equity line of credit (HELOC) or a fixed-rate second mortgage. If your current first-mortgage rate is well below today's market, a second lien often costs less overall even though its own rate is higher, because it leaves the low first-mortgage rate untouched.
In Florida, a cash-out refinance triggers documentary stamp tax on the full new note and intangible tax on the full new mortgage, so the state taxes alone can add a meaningful cost. Include them in your break-even math along with title, appraisal and lender fees.
Rates shown could change or may not be available at commitment or closing.
Daily rate-lock index (OBMMI)
Updated daily by providerIndex data © Optimal Blue, LLC. Optimal Blue Mortgage Market Indices.
Source: Optimal Blue Mortgage Market Indices (OBMMI), updated August 26, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing.
Cash-Out Refinance Rates: common questions
Why is a cash-out rate higher than a regular refinance?
Agency pricing adds an adjustment for cash-out transactions that increases with loan-to-value and decreases with credit score. Lenders pass that cost through as a higher rate or more points.
How much cash can I take out?
Conventional and FHA loans generally allow a total loan up to 80 percent of appraised value on a primary residence. VA allows more. The cash you receive is that amount minus your existing payoff and closing costs.
Is a HELOC better than a cash-out refinance?
If your existing first-mortgage rate is well below current rates, a HELOC or second mortgage usually preserves more of that benefit. If your current rate is at or above the market, a cash-out refinance can be simpler.
Is cash-out refinance money taxable?
Loan proceeds are not income and are not taxed. Whether the interest is deductible depends on how the funds are used; consult a tax professional.
Refinance savings check
Share your current balance and rate and we will run the break-even math on a refinance for your scenario.