Best Cash-Out Refinance Rates | 2024 Lender Rankings

Finding the best cash-out refinance rates for you

Finding the best cash-out refinance rates is important. The lower your rate, the less your interest payments eat into your cash-back.

The mortgage companies with the lowest 30-year cash-out refinance rates on average are shown below.

Just remember that cash-out refinance rates are based on your personal finances and your home equity. So the “best” deal looks different for everyone. Compare rates from a few different lenders to find your best cash-out rate.

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In this article (Skip to...)

Best banks and lenders
Best cash-out rates
Find your best rate
What affects your rate
Cash-out loan limits
FAQ

Note: Cash-out refinance rates cited in this article are from 2023 and do not reflect the rate you will be offered today. Interest rates are shown for general comparison purposes only.

Banks and lenders with the best cash-out refinance rates

To find the best cash-out refinance rates in 2024, we compared average 30-year cash-out rates from the 50 largest lenders in 2023 (the most recent and accurate data available).^1,2These mortgage rates are based on loan-level data mortgage lenders are required to file each year under the Home Mortgage Disclosure Act (HMDA).

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According to the data, the 10 lenders with the best cash-out refinance rates on average are:

JPMorgan Chase Bank
Navy Federal Credit Union*
Bank of America
loanDepot
Cardinal Financial Company
Rocket Mortgage
Plaza Home Mortgage
Citibank
Pennymac
Mortgage Research Center*

*These lenders specialize in select loan types and may not help every borrower.

Best cash-out refinance rates of 2024: lender rankings

Here’s how the biggest cash-out refinance lenders in 2024 rank, from lowest to highest average 30-year rate:

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Banks and lenders with the best cash-out refinance rates:

JPMorgan Chase Bank: 4.59%
Navy Federal Credit Union*: 5.92%
Bank of America: 6.12%
loanDepot: 6.32%
Cardinal Financial Company: 6.36%
Rocket Mortgage: 6.43%
Plaza Home Mortgage: 6.44%
Citibank: 6.49%
Pennymac: 6.51%
Mortgage Research Center*: 6.54%
Village Capital: 6.61%
PHH Mortgage Corporation: 6.64%
Citizens Bank: 6.65%
Nationstar Mortgage: 6.65%
Fifth Third Bank, National Association: 6.68%
Truist Bank: 6.69%
Planet Home Lending: 6.72%
Freedom Mortgage: 6.73%
Regions Bank: 6.73%
AmeriHome Mortgage: 6.77%
PNC Bank: 6.80%
Fairway Independent Mortgage: 6.86%
U.S. Bank National Association: 6.88%
Crosscountry Mortgage: 6.88%
Guaranteed Rate: 6.88%

*These lenders specialize in select loan types and may not help every borrower.

In 2024, cash-out refinance rates have been trending upward, driven by a combination of economic factors and shifts in the real estate market.

According to our recent analyses, the average rate for a 30-year fixed cash-out refinance has hovered around 7.17%. The Federal Reserve’s monetary policies and broader economic indicators like inflation and employment rates have an impact on this trend.

Our study, which evaluated data from last year, remains the most current and accurate available, offering insights into the best cash-out refinance rates borrowers can expect.

However, remember that the best lender, on average, might not offer you the lowest mortgage refinance rate. It’s crucial to research and compare multiple lenders to find the best interest rate for your specific situation, which can help maximize your savings.

How to secure your best cash-out refi rate

Qualifying for the best cash-out refinance rates can save you thousands of dollars over the life of your loan. By following these strategies, you can increase your chances of getting the most favorable terms and rates for your financial situation.

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Shop around and negotiate

To find the best cash-out refinance rates, compare offers from multiple lenders and negotiate with loan officers to secure a lower mortgage rate. Shopping around can help you save on upfront costs and long-term mortgage interest.

Be sure to compare annual percentage rates (APR) because they include not only the interest rate but also any additional fees or costs associated with the loan, providing a more comprehensive view of the true cost of borrowing.

Improve your credit score

A higher credit score can help you qualify for better cash-out refinance rates. Work on improving your credit by paying bills on time, reducing credit card debt, and correcting any errors on your credit report.

Lower your LTV

Lowering your loan-to-value ratio (LTV) can also lead to more favorable mortgage refinancing rates. Consider waiting until you have more equity in your home or making a larger down payment to secure the best cash-out refinance rates.

Factors affecting cash-out refinance rates

Understanding the factors that influence cash-out refinance rates can help you make informed decisions about your mortgage refinancing options. By keeping these factors in mind, you can better position yourself to secure the best cash-out refinance rates available.

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Credit score and history

Your credit history and credit score both play a significant role in determining your best cash-out refinance rates. Lenders typically offer the best rates to borrowers with higher credit scores and a history of timely payments.

Loan-to-value ratio (LTV)

Your LTV is another crucial factor affecting cash-out refinance rates. A lower LTV generally results in better rates, as it represents less risk to the lender. Keep an eye on your home’s value and your current mortgage balance to determine your LTV.

Loan term and type

The loan term and type you choose can also impact your cash-out refinance rates. Shorter loan terms often have lower interest rates but higher monthly payments. Consider your personal finances and long-term goals when selecting a loan term and type.

How much money can you get in a cash-out refinance?

Generally, most lenders allow you to borrow up to 80–90% of your home’s value, minus your current mortgage balance, when doing a cash-out refinance. The percentage of your home’s value you can borrow against is known as the loan-to-value ratio (LTV). The maximum LTV allowed varies by lender and loan type.

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Example: If your home is worth $300,000 and you still owe $150,000 on your existing mortgage, you could potentially refinance for up to $240,000 (80% of the home’s value). To calculate the maximum cash-out amount, subtract your current mortgage balance from the new loan amount:

Maximum cash-out amount = New loan amount - Current mortgage balance
Thus, $90,000 = $240,000 - $150,000

In this example, you would receive $90,000 in cash after paying off your existing $150,000 mortgage balance.

Keep in mind that, depending on your credit history, debt-to-income ratio, and other factors, the actual cash-out amount you qualify for might be lower than the maximum allowable by your lender. Additionally, some lenders may have specific rules or restrictions on the use of cash-out funds, such as requiring that a portion of the money be used for home improvements or other specific purposes.

Cash-out refinance costs and fees

When comparing the best cash-out refinance rates, it’s important to understand the associated costs and fees. These expenses are similar to those you pay for any mortgage loan and typically range between 2% and 5% of the loan amount.

Refinance closing costs typically include:

Loan origination fee: This fee covers the lender’s administrative costs and is typically 1–1.5% of the loan amount. For a $200,000 cash-out refinance, the origination fee would be $2,000–$3,000.
Discount points (optional): Discount points are upfront fees paid to lower your interest rate. Each point costs 1% of the loan amount. For a $200,000 loan, one discount point would cost $2,000.
Application fee: This fee covers the cost of processing your loan application and ranges from $75 to $300.
Credit check fee: Lenders charge a fee to pull your credit report, typically around $25.
Home appraisal fee: An appraisal is required to determine your home’s current value. Appraisal fees range from $500 to $1,000 or more, depending on your home’s size and location.
Title search and title insurance: These fees protect you and the lender against claims on your property’s title. They range from $300 to $2,000 or more.
Survey fee: A survey may be required to verify your property’s boundaries, costing $150–$400.
Attorney fees: In some states, an attorney is required to review and close the loan. Attorney fees range from $500 to $1,000.
Recording fees: Local governments charge fees to record the new mortgage, typically $25–$250, depending on your location.
Processing and/or underwriting fee: These fees cover the cost of preparing and evaluating your loan and range from $300 to $900 each.
Prepaid taxes and homeowners insurance: You may be required to prepay a portion of your property taxes and homeowners insurance at closing. The amount varies based on your location and due dates.

You have the option to pay these costs out of pocket or add them to your new mortgage balance. By adding them to your mortgage, you spread the costs over the life of the loan, which may have a minimal impact on your monthly payment. However, it’s important to consider that you’ll be paying interest on these costs over the life of the loan, which can add up over time.

Example: Let’s say you’re doing a $200,000 cash-out refinance with $5,000 in closing costs. If you add the closing costs to your mortgage and have a 30-year loan at 4% interest, you’ll pay an additional $9,550 in interest over the life of the loan. If you can afford to pay the closing costs upfront, you’ll save money in the long run.

Understanding cash-out refinance rates

When considering a cash-out refinance, it’s essential to understand how cash-out refinance rates work and how they compare to regular refinance rates. This section will provide you with the knowledge you need to make informed decisions about your home improvements or other financial goals.

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What is a cash-out refinance rate?

A cash-out refinance rate is the interest rate charged on a new loan that replaces your existing mortgage with a larger loan amount. The difference between your current loan balance and the new mortgage is given to you in a lump sum, which you can use for various purposes, such as home improvements, debt consolidation, or other financial needs.

How cash-out refinance rates work

Your credit score, loan-to-value ratio (LTV), and market conditions are just a few of the variables that affect cash-out refinance rates.

Your LTV is calculated by dividing your loan amount by your home’s value. A higher LTV typically results in a higher interest rate, as it represents a greater risk to the lender. Additionally, if your LTV ratio exceeds 80%, you may be required to pay private mortgage insurance (PMI), which can increase your overall borrowing costs.

Comparing cash-out refinance rates to regular refinance rates

Cash-out refinance rates are generally higher than regular refinance rates. This is because lenders consider cash-out refinances to be riskier than traditional refinances, as borrowers are taking on additional debt and increasing their loan-to-value ratio. The higher risk translates to higher interest rates.

However, even with slightly higher rates, a cash-out refinance can still be a cost-effective way to access the value of your home for various purposes. It’s important to compare rates from multiple lenders and consider factors such as closing costs, loan terms, and your overall financial goals when deciding whether a cash-out refinance is right for you.

Types of cash-out refinance loans

Homeowners looking for the best cash-out refinance rates have several options, depending on their current mortgage type and financial situation. The most common types of mortgage refinancing with cash-out options are conventional loan cash-out refinance, FHA cash-out refinance, and VA cash-out refinance.

Conventional cash-out refinance

A conventional loan cash-out refinance is ideal for borrowers with good credit scores and more than 20% home equity. This option allows homeowners to eliminate mortgage insurance premiums if their current loan is an FHA loan. Generally, it requires a loan-to-value ratio of 80% or less and a debt-to-income ratio of 43% or less.

FHA cash-out refinance

An FHA loan cash-out refinance allows borrowers to access up to 80% of their home’s value. It requires the home to be the primary residence for the past 12 months and typically requires a minimum credit score of 600 and upfront mortgage insurance fees.

VA cash-out refinance

A VA loan cash-out refinance is available to eligible veterans and active-duty service members. It allows borrowing up to 100% of the home’s equity and requires a credit score of at least 580–620 and a debt-to-income ratio below 41%, which may vary by lender. No monthly mortgage insurance is required.

When considering a cash-out refinance for the first time, compare offers from multiple lenders to find the best cash-out refinance rates and terms for your specific situation. Keep in mind that cash-out refinancing may extend your 30-year mortgage repayment period and increase your monthly payments.

Pros and cons of cash-out refinancing

Cash-out refinancing can be a powerful tool for homeowners looking to achieve their financial goals, but it’s crucial to weigh the pros and cons before making a decision. By understanding the best cash-out refinance rates and the potential risks involved, you can determine if this strategy aligns with your financial objectives.

Advantages of cash-out refis

Access to home equity at lower interest rates compared to other loan types
Consolidate high-interest debts into a single, lower-interest payment
Fund major expenses like home improvements, education, or starting a business

Potential drawbacks

Potential for private mortgage insurance (PMI) if the new loan exceeds 80% of the home’s value
Extended repayment period, which may prolong the time it takes to pay off your mortgage loan
Increased risk of foreclosure if you’re unable to make the higher monthly mortgage payments

To find the best cash-out refinance rates, it’s essential to compare offers from multiple lenders and use a mortgage refinance calculator to assess the impact on your financial situation. By carefully evaluating your options and understanding the potential consequences, you can make an informed decision about whether cash-out refinancing is the right choice for you.

Cash-out refinance alternatives

If, after analyzing your situation with a refinance calculator and considering potential PMI costs, you find that cash-out refinancing may not be the best option for your financial goals, there are several alternatives available.

Home equity line of credit (HELOC): A HELOC operates similarly to a credit card and allows homeowners to borrow against their home equity as needed. This flexibility can be beneficial, and interest rates are typically lower than credit card rates
Home equity loan: A home equity loan is a second mortgage that gives homeowners a one-time lump sum of money, much like a cash-out refinance. However, this does not involve replacing the existing mortgage
Personal loan: For those who don’t want to tap into their home equity or who don’t have enough equity built up, personal loans can be a viable alternative. These are unsecured loans that can be used for any purpose
Down payment savings: If your goal is to purchase a second home or rental property, it might make more sense to put aside savings towards a down payment. This will lower the amount you need to borrow and potentially eliminate the need for PMI
401(k) loan: Some retirement plans allow you to borrow from your savings, typically at a low interest rate. However, borrowing from your 401(k) should be a last resort as it can impact your long-term retirement savings

Each of these options carries its own risks and benefits. It’s essential to understand the potential implications of each option for your long-term financial health before deciding.

FAQ: Best cash-out refinance rates

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What can I use a cash-out refinance for?

There are no rules about how you can use the funds from a cash-out refinance. Popular uses for cash-out refinancing include paying for home improvements or renovations on your single-family home, debt consolidation, paying off high-interest debt like credit cards, student loans, or personal loans, and investing in a business, real estate, or college tuition.

What's the minimum credit score for a cash-out refinance?

You’ll likely get a lower rate if your credit score is 740 or better. You should also have a clean credit history and credit report. You may be able to get a cash-out refinance with a score in the 620–640 range—or even 600 for an FHA loan. Unfortunately, the lower your score, the higher the rate you’re likely to pay.

Does cash-out refinancing have higher interest rates?

Yes, normally. Expect your rate to be about 0.125-0.25 percent higher than the standard refinance rates you’d qualify for. This is because lenders know that cash-out refinance loans are riskier than no-cash-out loans. That means they have higher interest rates across the board.

Which lender has the lowest cash-out refi rates?

On our list, JPMorgan Chase had the best cash-out refinance rates. But that doesn’t necessarily mean it will provide you with the best deal you can get. So shop around between several lenders. That’s the best way to find your personal best rate and cost.

Does FHA allow cash-out refinancing?

Yes, the FHA allows cash-out refinancing. In fact, only USDA loans don’t allow cash-out refinances. However, the FHA insists you retain 80% of your equity. And, if you have that much, you can usually refinance to a conventional loan, which means you’ll never pay mortgage insurance again. Typically, only those with credit scores in the 600–640 range, such as some first-time homebuyers, need an FHA cash-out refinance.

Does VA allow cash-out refinancing?

Yes! And it’s the best sort of cash-out refinancing. Many lenders allow you to refinance up to 100 percent of your property value with a VA loan, which means you can take all your available equity as cash back.

Can you cash-out refinance a jumbo loan?

Yep. But you’ll need a higher credit score (likely in the 700s) and lots of home equity built up in the property.

Can a cash-out refinance replace my adjustable-rate mortgage?

Yes, cash-out refinancing can also replace an adjustable-rate loan with a fixed-rate mortgage or switch to a shorter loan term, which can reduce your interest payments over time.

What are today’s cash-out refinance rates?

Mortgage rates are still low compared to most of U.S. history. And homeowners have built up a record amount of equity over the past couple of years.

If you need cash, tapping your equity can be an affordable way to access a large sum of money.

Shop with a few cash-out refinance lenders to see what rates you qualify for today.

¹Rate and fee data were sourced from self-reported loan data that all mortgage lenders are required to file each year under the Home Mortgage Disclosure Act. Averages include all 30-year non-cash-out refinance loans reported by each lender for the previous year. Your own rate and loan costs will vary.

²Top lenders for 2024 based on 2023 HMDA data sourced directly from the HMDA data browser