How Much Cash Can You Take Out With a Cash-Out Refinance?

If you’re thinking about pulling cash from your home’s equity, you’re probably asking one thing: how much can I actually get? Your max cash out refinance amount is based on your home’s value, your current loan balance, and a few lender guidelines. Understanding that number can help you see just how much financial flexibility your home can offer.

How lenders decide the cash-out refinance limit

Every cash-out refinance starts with something called a loan-to-value ratio, or LTV. This simply means the percentage of your home’s current value that you’re allowed to borrow. Most conventional lenders let you borrow up to about 80% of your home’s appraised value. You keep the remaining 20% as equity, which acts as a cushion for both you and the lender.

Here’s what that looks like in practice:

Your home is appraised at $500,000, and you still owe $300,000 on your current mortgage.
If your lender allows an 80% LTV, you could borrow up to $400,000 (that’s 80% of $500,000).
After paying off your existing $300,000 loan, you’d have around $100,000 in cash available, minus closing costs and fees.

That’s how most lenders calculate your potential cash-out amount: they determine the maximum new loan size based on your home’s value, subtract what you owe, and the remainder is what you can pocket.

How loan types affect your max cash out refi amount

Not all cash-out refinances are built the same. The 80% cap is standard for conventional loans, but other loan types may allow more flexibility.

• FHA loans typically let you borrow up to 80% of your home’s value, similar to conventional options.
• VA loans can sometimes go up to 90% or even close to 100% for eligible veterans and service members, which means you might be able to tap almost all your equity.
• Investment or vacation homes tend to have lower limits (often around 70% to 75%) because they carry a bit more risk from the lender’s perspective.

These differences matter because they can significantly change the amount of cash available to you. If you’re a homeowner with VA eligibility, for example, you may be able to access tens of thousands more than someone with a conventional loan on the same property.

What affects your max cash out refinance amount

While the math is straightforward, the details matter. A few factors can raise or lower your maximum cash-out amount:

• Home appraisal: The higher your appraised value, the more equity you can access. If your home appraises lower than expected, your available cash will shrink.
• Credit score: A stronger score can make it easier to qualify for the full LTV limit and get better rates.
• Debt-to-income ratio: Lenders want to make sure your income comfortably supports the new payment amount.
• Existing second liens: If you have a home equity loan or line of credit, that affects your total borrowing limit.
• Closing costs: These are usually 2% to 6% of your loan amount and come directly out of your proceeds.

Sometimes homeowners are surprised to learn how much they can access, especially if their property value has climbed over the past few years. Even modest appreciation can unlock tens of thousands in additional equity.

Should you take the maximum amount?

It can be tempting to take the max cash out refinance amount your lender offers, especially when you see a large number tied to your home equity. But more isn’t always better. Increasing your mortgage balance means higher monthly payments and potentially more interest over time.

If you’re using the funds for something that adds long-term value, like renovations that boost your home’s worth, that’s usually a smart move. But if the money would go toward everyday spending, it might make more sense to take less than the max cash out amount and preserve some equity for the future.

It’s all about finding the right balance between using your home’s value strategically and keeping enough equity for long-term financial stability.

The bottom line

For most homeowners, the max cash out refinance amount is typically up to 80% of your home’s current value. Once you subtract what you owe and the closing costs, the remainder becomes the cash you can access. The exact amount depends on your loan type, credit profile, and your home’s appraised value, but in many cases, homeowners are pleasantly surprised by how much equity they can unlock.

Tapping into your home equity through a cash-out refinance isn’t as complicated or as intimidating as it might sound. With a solid understanding of the numbers and a clear plan for how you’ll use the funds, you can turn your built-up equity into a powerful financial tool that works for you.