Cash-Out Refinance
Replace your mortgage with a larger one and take the difference in cash, up to 80% LTV.
How it works
A cash-out refinance replaces your existing mortgage with a larger one and pays you the difference in cash. In 2026 it is usually capped at 80% loan-to-value and prices around 6.5-7.5%. It works best when you want first-lien pricing and a single loan, accepting full closing costs.
Key things to know
- Combined loan-to-value usually caps near 85% (cash-out refinance at 80%).
- A second lien keeps your first mortgage; a cash-out refinance replaces it.
- Compare the rate type — fixed (home equity loan) vs variable (HELOC).
- Budget for closing costs (often lower or waived on HELOCs).
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Frequently Asked Questions
- What is the cash-out refinance?
- A cash-out refinance replaces your existing mortgage with a larger one and pays you the difference in cash. In 2026 it is usually capped at 80% loan-to-value and prices around 6.5-7.5%. It works best when you want first-lien pricing and a single loan, accepting full closing costs.
- Will it affect my first mortgage?
- Only a cash-out refinance replaces your first mortgage. A HELOC, home equity loan, or second mortgage sits behind it and leaves that rate alone.