Current cash-out refinance rates

Today’s cash-out refinance rates

As of mid-2025, cash-out refinance rates are generally slightly below the 7-percent mark. Since cash-out refinances are considered riskier than their rate-and-term counterparts, cash-out refi rates are generally higher than regular refinance rates — specifically, between one-quarter and one-half a percentage point higher. To get the most competitive rates, it’s best to shop around and obtain quotes from several lenders.

Factors influencing cash-out refinance rates

Like all mortgage rates, cash-out refinance interest rates are affected by both personal and market factors, such as:

• Credit score
• Debt-to-income (DTI) ratio
• Lender policies
• Federal Reserve’s monetary policy
• Economic conditions

How to get the best cash-out refinance rate

Because you’re taking out a bigger loan with a cash-out refinance, it’s all the more important to find the best possible rate. Here’s how:

• Review your credit. You won’t get the best interest rate possible if your credit score needs work. Well ahead of applying for a cash-out refinance, check your credit reports and scores. Many lenders allow you to qualify with a score as low as 620, but the best rates go to borrowers with a score of 740 or higher. Here’s more on how to improve your credit for a mortgage, plus bad-credit refinance options.
• Take stock of what you already owe. If you have other debt, like a car loan or student loans, these factor into your debt-to-income (DTI) ratio. The lower your DTI ratio — ideally 45 percent or less — the better your chance of getting a lower rate. To find out yours, use our DTI calculator.
• Compare cash-out refinance loan types. Considering the different types of cash-out refinance loans can help identify the best choice for your situation. (And as you explore different loan types, it’s a good idea to compare the lenders that offer them, too.) While eligibility varies by program, the options include:

  • Conventional cash-out refinance: These loans are open to borrowers with many loan types — for example, if your original loan was an FHA loan, you may still qualify for a conventional cash-out refinance. You may also perform a cash-out refinance on an investment property. However, they tend to have the most stringent financial qualifications.

  • FHA cash-out refinance: You may use an FHA cash-out refinance even if you started out with a conventional loan or other loan type. However, like all government-backed loans, you can't use one to refinance an investment property. Like FHA purchase loans, these may have more flexible qualifications than a conventional cash-out refinance.

  • VA cash-out refinance: Similar to VA purchase loans, these are available only to qualifying active-duty service members, veterans and surviving spouses.

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

Many lenders allow you to tap up to 80 percent of your home’s current value in a cash-out refinance. Conventional and FHA cash-out refinances are limited to 80 percent of your home’s value, but with a VA cash-out refinance, you can get up to 100 percent. USDA loans don’t allow for cash-out refinancing.

Uses for a cash-out refinance

You can use money from a cash-out refinance however you want, but some of the most common uses include:

• Home improvement and renovation projects
• Consolidating high-interest debt
• Paying for education
• Getting a down payment on an investment property

While there are valid reasons for a cash-out refinance, you should consider the pros and cons as well. They include:

Pros of cash-out refinance

• Access to cash: You can turn your equity into a liquid asset to cover home repairs, pay for college tuition, or use for any other purpose.
• Home value increase: If you use a cash-out refinance to renovate your home with a kitchen remodel or an addition, for instance, you could grow your home's value.
• Lower interest rates: Mortgages come with lower interest rates when compared to credit cards, personal loans and other forms of debt. You can use a cash-out refinance to pay off this higher-interest debt and improve your credit score by lowering your credit utilization.

Cons of cash-out refinance

• Increased debt load: A cash-out refinance replaces your old mortgage with a new, larger mortgage. This means you’ll likely have a higher monthly payment.
• Closing costs: You’ll have to pay for some closing costs like you did for your original mortgage. For a cash-out refinance, the lender charges an appraisal fee, and it might charge an origination fee, often a percentage of the amount you’re borrowing. 
• Foreclosure risk: Unlike credit cards and personal loans, mortgages are secured debt, with your home as collateral. If you’re unable to make your mortgage payments, your home will eventually be subject to foreclosure.

Cash-out refinance requirements

As with any mortgage, you must meet certain financial criteria to qualify for a cash-out refinance. Here are a few of the general requirements:

• Credit score: Most cash-out refinances require a credit score of 620 or higher.
• Debt-to-income (DTI) ratio: Your DTI is a measure of your monthly debt payments against your income. Most lenders limit your DTI ratio to no more than 45 percent for a cash-out refinance.
• Equity: You’re required to keep a minimum of 20 percent equity in your home. (The big exception to this is if you’re doing a VA cash-out refinance.)
• Six months to a year of payments on your current mortgage: You typically have to wait at least six to 12 months to refinance your mortgage after the original loan closed, though there could be exceptions.

Additional resources on cash-out refinancing

• Refinancing for home improvement: How it works
• FHA cash-out refinance guide
• Is doing a VA cash-out refinance a good idea? Here’s what to know

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Alice Holbrook, Editor, Home Lending

I have been a writer and editor in the personal finance space for more than a decade, with more than three of those focused on homebuying and homeownership. I’ve had work appear in outlets including Newsweek, The Washington Post, The Associated Press, USA Today and MarketWatch.

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Reviewed by: Greg McBride, CFA, Chief Financial Analyst, Bankrate

Greg McBride is a CFA charterholder with more than a quarter-century of experience in personal finance, including consumer lending prior to coming to Bankrate. Through Bankrate.com's Money Makeover series, he helped consumers plan for retirement, manage debt and develop appropriate investment allocations. He is an accomplished public speaker, has served as a Wall Street Journal Expert Panelist and served on boards in the credit counseling industry for more than a decade and the funding board of the Rose Foundation’s Consumer Financial Education Fund.

Read more from Greg McBride