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Cash Out Refinance Rates

See current mortgage rates from some of the top lenders. Compare rates and product features instantly.

Compare cash-out refinance rates from top lenders

Regardless of where cash-out refinance rates stand, you should always compare personalized rates from multiple lenders. To find a great loan option, use Credible.


In the table below, you can see today’s cash-out refinance rates and add the cash-out amount you’re seeking. These personalized rate quotes are free and won’t impact your credit.

How it works

How to find the right mortgage refinance loan for you

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Checking rates won’t affect credit score

  1. Get prequalified rates in 3 minutes:

    It's quick and painless. Tell us a little bit about you and your home to get accurate prequalified rates without impacting your credit score.

  2. Compare rates from multiple lenders:

    View the interest rate and cost breakdown of each loan to choose the best lender and loan product for you. Need help? Our mortgage team is not commissioned, so they're always on your side.

  3. Upload documents on Credible:

    We take the stress out of refinancing by automating the document collection process, keeping you updated on the status of your application every step of the way.

  4. Finish your loan with us:

    With Credible, you can complete the whole refinance process online. We have a team of dedicated mortgage experts ready to help you if you need it.

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What is a cash-out refinance?

With a cash-out refinancing loan, you take out a new home loan and use it to pay off your existing mortgage. The new mortgage is for a larger amount than the old one and it likely has a different mortgage interest rate, minimum monthly payment, and repayment term.

After the cash-out refinance mortgage is used to pay off your current mortgage, any remaining funds left over are issued to you as a lump sum. You can use the money for home improvements, debt consolidation, or for financing your child’s education. This is another alternative to other lines of credit, like home equity loans or HELOCs.

Find Out: 

What Is a Mortgage Rate and How Do They Work?

When to consider a cash-out refinance

One of the best reasons for a cash-out refinance is to consolidate high-interest debt — such as credit card debt. With a cash-out refi, you can use the lump sum payment to pay off your debt, while also potentially securing a lower interest rate on your mortgage.

You may also choose to use your funds for home improvements to increase your property value and quality of life.

This loan option is generally better than a home equity loan or a home equity line of credit (HELOC) when you can improve the interest rate or monthly payment for your entire mortgage. For example, if your refinance rate is at least 1% lower than your existing rate, a cash-out refinance might make financial sense.

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

Most lenders require you to retain at least 20% equity in your home, so the most you can get is 80% of your home’s total value, minus whatever you still owe on your mortgage.

For example, if you have a home worth $300,000 and owe $100,000 on your mortgage, you have $200,000 in equity. If that’s the case, the maximum you can borrow with a cash-out refinance loan is $240,000 — $100,000 to pay off your existing loan plus $140,000 in cash out.

Equity needed for a cash-out refinance

You’re only eligible for a cash-out refinancing loan if you have equity in your home. Your equity is the value of your home minus the current balance of your mortgage. If you own a $250,000 home and you owe $100,000, your home equity is $150,000.

Learn More: 

How to Pay Off Debt With a Home Equity Loan

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Compare cash-out refinance rates

If you’re thinking about applying for a cash-out refinance mortgage to free up cash flow for home repairs or a major purchase, be sure to compare offers from multiple lenders to ensure you get the best cash out refinance rates.

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Today’s refinance rates

Home refinance rates rise and fall on a daily basis with changing economic conditions, central bank policy decisions, and investor sentiment. The table below shows recent trends in home refinance rates.

ProductInterest rateAPR

Last updated on Jul 06, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

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Cost of a cash-⁠out refinance

Cash-out refinancing closing costs can vary by location, but in general, you should expect to pay 2% to 3% of your loan amount.

If you’re applying for a $100,000 cash-out refinancing loan, you should plan to pay as much as $3,000 in closing costs.

Keep Reading: 

How to Refinance Your Mortgage in 6 Easy Steps

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Frequently asked questions about cash-out refinance rates

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By Chris Jennings

As a Credible authority on mortgages, Chris Jennings covers topics including home loans and mortgage refinancing. His work has appeared in Fox Business and GOBankingRates.
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Cash-out refinances usually have higher rates than a traditional refinance as lenders often see these loans as riskier since the loan amounts are larger. There also isn’t as much available equity for collateral if you default.

Your rates for a cash-out refinance can be approximately 0.125% and 0.25% higher than a no cash-out refinance. However, several factors including your credit score, loan-to-value (LTV) ratio, and closing costs can also impact your new loan’s annual percentage rate (APR).

There isn’t publicly available historical data for cash-out loans, but you can compare 15-year mortgage refinance rates to get a fair estimate.

The lowest 15-year refinance rate by monthly average was in August 2021 at approximately 2.15%, according to historical data from Freddie Mac.

It’s always an excellent idea to compare refinance rates from several lenders to make sure you get the best loan terms. Credible can help you find the best refinance options in a matter of minutes without affecting your credit score.

A good cash-out refinance rate is typically at least 1% below your current rate. This sort of rate drop would translate into significant interest savings over the life of the loan. However, depending on your cash-out sum and your new loan balance, you may also benefit even if your rate is only 0.50% or 0.75% lower.

Your new mortgage rate depends largely on these two factors:

  1. Credit score: Homeowners with a credit score in the mid- to high-700s and above tend to qualify for the lowest rates.

  2. Loan-to-value ratio: Strive to keep your LTV ratio below 80% of your appraisal value. By doing this, you stand a better chance to qualify for the loan and won’t have to pay private mortgage insurance (PMI). Borrowing less equity may also lower your rate.

Cash-out refinances tend to have lower interest rates than second mortgage products like home equity loans and HELOCs.

Home equity loan rates vary by lender, but you may end up with a rate that’s 1% to 3% higher than what you’d find on a cash-out refinance, depending on your loan amount, repayment term, and other personal factors.

Second mortgages only place a lien on your current mortgage which means the lender only receives compensation during a default after your first mortgage is paid off. As a result, home equity loan and HELOC rates can be higher to hedge against this risk.

Here’s an example of what your costs might look like with each loan type. The example below assumes a 15-year repayment term with a $200,000 mortgage principal, an $80,000 equity lump sum, and a $350,000 home appraisal value.

Since you’re still responsible for paying off the original mortgage, the home equity loan and HELOC calculations also include a $1,454 monthly payment and a 3.75% interest rate on the existing $200,000 home loan balance with 15 years of remaining payments.

Loan typeCash-out refinanceHome equity loanHome equity line of credit
Loan amount$280,000$80,000$80,000
Refinance Interest rate2.75% fixed4.50% fixed (3.75% fixed on the first mortgage)4.00% variable (3.75% fixed on the first mortgage)
Closing costs (2%)$5,600$1,600$1,600
Monthly payment (principal and interest only)$1,900

$612

($2,066 total)

$592

($2,046 total)
Total interest costs$62,025

$30,159

($91,959 total)

$26,515

($88,315 total)

It’s also important to note that you may be able to deduct the interest paid on your cash-out refinance if you use the funds to improve your home.

Market conditions are the most influential factor in determining current rates. In general, rates are lower during a weak economy but tend to be higher when an economy is strengthening or there is strong demand for refinancing.

Some factors that you can optimize to get a competitive rate include:

  • Credit score: Lenders consider a score in the mid- to high-700s to be excellent credit.

  • Debt-to-income (DTI) ratio: An ideal DTI ratio is 36% or less. Paying off credit card debt is one way to reduce this ratio and demonstrate you can afford your new monthly payment.

  • Repayment term: Repayment periods as short as 10 years tend to have the lowest APR but higher monthly payments. Consider a 15-year or 20-year term for a more affordable monthly payment.

  • Conforming loan limits: If you live in an expensive area and your loan amount exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan limits, you’ll need to apply for a jumbo loan. Lenders assume more risk with a jumbo loan, and they come with higher closing costs.

  • Closing costs: You may be able to roll some of your lender fees into your loan balance. However, this decision will likely increase your rate.

  • Discount points: Purchasing discount points can reduce your APR. This upfront expense may be worth it if you plan on living in your house for several years and can break even on the initial cost.

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