Key Insights on Cash-Out Refinancing You Need to Know
- Escalating home values have contributed to substantial equity gains over the last several years. As of 2025, homeowners collectively hold over $30 trillion.
- A cash-out refinance enables you to utilize your home equity by obtaining a new, larger mortgage, which pays off the existing loan while you retain the remaining funds.
- The funds from a cash-out refinance can be utilized for various purposes, such as performing home repairs or settling high-interest debt.
- Be aware that you might face increased monthly payments if the interest rate on your cash-out refinance is higher than your current mortgage rate.
Since 2016, the editorial team at Money has diligently researched and evaluated numerous companies providing home equity lending products. Our comprehensive analysis reviews vendor offerings, cost-effectiveness, qualification criteria, financial stability, and customer feedback, ensuring we provide our readers with the most valuable and precise recommendations.
What Makes Our Analysis Trustworthy?
Our editors and writers have thoroughly reviewed and assessed mortgage lenders that offer cash-out refinancing loans to guarantee that our content is accurate and adheres to high editorial standards. Read our comprehensive methodology for more details.
- Evaluated over 20 lending providers
- Based on 14 specific data points, including fees, loan conditions, lender prerequisites, and loan limits.
Discover Our Top Choices for Cash-Out Refinance Lenders in 2026
In-Depth Reviews of Leading Cash-Out Refinance Lenders
- Provides refinancing options with flexible credit requirements
- Offers refinancing for individuals with a recent history of bankruptcy or foreclosure
- Flexible refinancing loans that do not require private mortgage insurance
- No direct loan offerings in North Dakota and Massachusetts
- Pre-qualification and application must be done through a loan officer
Why We Recommend It: Carrington Mortgage Services (NMLS #2600) provides three specialized refinance loans that allow borrowers with credit scores as low as 550 to qualify.
Carrington’s Flexible Advantage Refinance, Flexible Advantage Plus, and Prime Advantage loans are designed to help borrowers with lower credit scores and previous negative credit events (such as bankruptcy, foreclosure, short sales, and late payments) access refinancing options that traditional lenders might reject.
The Flexible Advantage program permits credit scores as low as 550 with cash-out options up to $250,000, while the Flexible Advantage Plus program requires a minimum score of 620 and allows cash-out up to $500,000. The Prime Advantage program demands a credit score of at least 660 but permits cash-out up to $750,000.
All these programs accommodate borrowers with histories of bankruptcy or foreclosure (these must be at least 36 months old for the Flexible Advantage program). Additionally, they don’t impose mortgage insurance, making them more financially manageable for some borrowers.
Moreover, Carrington provides cash-out refinances for conventional, FHA, and VA loans, accepting credit scores as low as 500.
- Low minimum credit score requirement for FHA loans
- Diverse customer service options available (online, phone, and in-branch)
- Website lacks detailed information about lender fees or rates
Why We Recommend It: With a minimum credit score requirement of 550 for its Federal Housing Administration (FHA) cash-out refinance loans and no mandatory private mortgage insurance, Freedom Mortgage (NMLS #2767) is an excellent choice for FHA borrowers seeking cash-out refinancing.
Freedom Mortgage boasts a maximum loan-to-value (LTV) ratio of 80%, and its minimum credit score requirement is significantly lower than the 580 to 620 minimum often mandated by most mortgage lenders, thus expanding access for more borrowers. The company’s conventional cash-out refinance loan similarly maintains an 80% maximum LTV, requires a minimum credit score of 620, and does not require mortgage insurance if 20% equity is retained.
Utilizing Freedom’s cash-out refinance calculator, borrowers can estimate their potential qualification amount. Although the lender’s site does not outline precise refinancing costs, fees typically range from 2% to 6% of the loan amount.
- Access up to 100% of home equity for VA cash-out refinances
- No lender fees on VA loans
- Requires a minimum loan amount of $175,000
- Limited information available regarding lender fees on non-VA loans
Why We Recommend It: With no lender fees for its VA cash-out refinances and the ability to access up to 100% of your home equity, North American Savings Bank (NASB) (NMLS #400039) is an outstanding option for veterans seeking to refinance.
Founded nearly a century ago, NASB is a dependable choice for borrowers looking to refinance their mortgage. NASB provides cash-out refinances for conventional, FHA, and VA loans.
On the downside, NASB’s website offers limited information regarding minimum credit score and debt-to-income ratio requirements for its refinance loans. Additionally, the lender’s cash-out refinance loan mandates a minimum loan amount of $175,000, although exceptions are made for borrowers based in Kansas City, where the company is located.
- Provides refinancing options for VA and conventional loans
- Positive customer reviews
- Competitive interest rates
- Lacks detailed information on credit score requirements
- Membership in the credit union is required
Why We Recommend It: Credit unions often stand out as excellent lenders. Nonprofit institutions typically offer lower rates than traditional lenders. While some credit unions impose limited membership criteria, PenFed’s membership requirements are broad: anyone can join by opening a savings account with a $5 deposit.
PenFed’s cash-out and VA streamline refinance loans feature some of the most competitive rates available for well-qualified borrowers. Furthermore, the lender enjoys strong customer reviews, with many users praising its responsiveness and overall customer service quality.
Utilizing PenFed’s loan estimator tool allows potential borrowers to gain insight into the size of the loan they may qualify for, and the option to apply for the refinance is available directly online.
- Low minimum credit score requirement
- Various cash-out options
- Simple process for obtaining a custom rate quote
- Limited branch presence
- Slightly higher closing costs
Why We Recommend It: PNC Bank (NMLS #446303) offers a diverse array of cash-out refinance mortgage products, which include conventional, jumbo, VA, and FHA loans, alongside PNC’s affordable lending solutions.
Some borrowers might also qualify for the lender’s Closing Cost Assistance program, which can include a 1% pricing promotion in the form of discount points and grants between $5,000 and $15,000 for various loan types. Its conventional loan cash-out refinancing is accessible for primary residences, secondary homes, and investment properties.
Interested borrowers can conveniently obtain a custom rate quote for their cash-out refinance by inputting their home value, desired loan amount, credit score range, and ZIP code into a calculator available on the lender’s website.
While the bank has limited branch locations and allows a maximum of 80% LTV for conventional and jumbo cash-out refinances, which may not fit everyone’s needs, this LTV restriction aligns with the offerings of many competitors.
- Low credit score requirement
- Quick online pre-approval process
- No physical branch locations
- Limited information provided regarding lender fees
Why We Recommend It: With a swift online application process and extensive online resources, Rocket Mortgage (NMLS #3030) serves as a robust option for borrowers pursuing a fully digital experience.
Rocket offers cash-out refinancing options for conventional, FHA, and jumbo loans.
The online pre-approval process is rapid and straightforward, helping borrowers ascertain how much equity they can access from their home relatively early in the process. Closing costs may range from 2% to 6%.
Although Rocket Mortgage does not maintain physical branch locations, its loan products are available through partner brokers for those requiring in-person service.
Additional Cash-Out Refinance Lenders Worth Considering
Though the following lenders did not make our top five recommendations, they may still be viable options for your cash-out refinance needs.
SoFi: Innovative Solutions for Self-Employed Borrowers
- Supports self-employed individuals or those with non-traditional income sources
- Predominantly online cash-out refinance application process
- Discounts available for existing SoFi members
- Limited loan offerings
- Must register to view rates
Although SoFi (NMLS #696891) is best recognized for its student loan refinancing offerings, it also provides cash-out refinancing for conventional loans, catering specifically to self-employed borrowers and those with non-traditional income sources. Unfortunately, the lender does not offer refinancing options for government-backed loans (like FHA or VA).
New American Funding: A Versatile Option for Equity Access
- Provides cash-out refinancing and HELOCs
- Low credit score accessibility
- Primarily an online process
- Limited disclosures on lender fees
- Few specifics on loan qualifications
New American Funding (NMLS #6606) is a solid choice for those experienced with the mortgage process and comfortable navigating online applications. The lender offers a broad array of refinancing options. However, it does not provide many of its fees until after a loan application is submitted, which can be a concern for borrowers who prefer to understand all costs upfront.
Essential Information About Cash-Out Refinancing
Refinancing your home can often be a complex and time-consuming process, filled with technical terms and paperwork. To assist you in understanding the critical concepts and procedures, we have compiled this comprehensive cash-out refinancing guide.
What Exactly is a Cash-Out Refinance?
A cash-out mortgage refinance allows you to tap into a portion of your home equity as cash, which you can then use for various purposes. Home equity represents the difference between the outstanding balance on your mortgage and the current market value of your property. In simpler terms, it’s the amount of money you could potentially receive if you sold your house today. You accumulate equity over time by consistently making your monthly mortgage payments.
Cash-Out Refinancing Options for Government-Backed Loans
If your mortgage is backed by a government program, such as FHA or VA loans, there are specialized cash-out refinancing options available:
- FHA cash-out refinance: This program allows you to refinance an existing FHA loan or a conventional mortgage. This option is particularly beneficial if your credit score is on the lower side, as the FHA program generally has lower credit score requirements.
- VA cash-out refinance: A VA refinance loan enables you to refinance an existing VA loan, or you can switch a non-VA mortgage to a VA-backed one.
While cash-out refinancing options are available for FHA and VA loans, they are not offered for USDA loans.
The cash obtained from a cash-out refinance is typically tax-free and can be utilized for a range of purposes, including debt consolidation, home improvements, education expenses, significant purchases, or even investment opportunities.
How Does a Cash-Out Refinance Function?
When you apply for a cash-out refinance, you secure a new loan that exceeds your current mortgage balance, with the cash difference being disbursed to you. The amount of cash you can receive is contingent upon your home’s value, your credit score, the equity you have accumulated, and the specific lender’s maximum loan-to-value (LTV) ratio.
Generally, you will need a higher credit score to qualify for cash-out refinancing compared to other loan types. Although you may qualify for cash-out refinancing with government-backed loans at a lower score, conventional loan refinancing typically requires a credit score of 640 or above.
Many lenders cap the maximum LTV at 80%-90%. For instance, if your home is valued at $500,000, you owe $100,000 on your mortgage, and the lender’s maximum LTV ratio is 80%, you could potentially acquire a new mortgage of up to $300,000 (($500,000 X 80%) – $100,000).
Cash-out refinances are mainly offered as fixed-rate mortgages, though you might find lenders providing adjustable-rate options as well.
How to Identify the Best Cash-Out Refinance Lender for Your Needs
Finding the ideal lender for a cash-out refinance can be daunting, making it crucial to conduct your research and compare different options to secure the best rates and terms. Be sure to consider a variety of lenders, including traditional banks, credit unions, and online financiers. The following section outlines the main steps you should take during your search.
1. Conduct Thorough Research and Compare Multiple Lenders
The most effective way to identify the right lender for your cash-out refinance is to compare multiple lenders side by side. Take into account factors such as the types of loans available, associated fees, and closing costs. Additionally, review customer feedback and ratings to assess what previous clients say about each lender’s service.
2. Assess Loan Interest Rates and Repayment Terms
When evaluating any loan, it’s vital to pay particular attention to the interest rate and repayment terms. A higher interest rate results in more total payments over the life of the loan, making it essential to compare lenders and select one with competitive rates.
The repayment term indicates how long it will take to pay off the loan. In certain situations, extending the repayment term may reduce your monthly mortgage payments, while in others, maintaining a shorter term could be more advantageous. Always weigh the trade-off between the interest rate and repayment term before finalizing a loan agreement.
3. Seek Recommendations from Trusted Sources
If you’re struggling to identify a suitable lender, consider asking for recommendations from friends and family who have recently gone through the refinancing process. Inquire about their experiences and whether they would endorse the lender they selected. This can provide invaluable insights and help narrow your search for potential lenders.
4. Assess Your Unique Needs and Financial Objectives When Searching for a Cash-Out Refinance Lender
Each individual’s financial goals and requirements are unique. You might be a veteran pursuing a VA loan or a property investor looking to access equity in an investment property. Different lenders specialize in various mortgage types and may offer distinct loan terms that others cannot match. This emphasizes the importance of evaluating your financial situation and specific needs before selecting a cash-out refinance lender.
5. Review and Comprehend the Fine Print of Loan Agreements
Prior to signing any loan documents, ensure that you thoroughly read and understand the loan agreement’s terms and conditions. Be aware of all closing costs associated with the loan as well as any additional fees that could apply. By performing your due diligence in advance, you will be better positioned to make an informed decision regarding your loan and avoid unpleasant surprises down the line.
6. Consult with a Mortgage Professional for Expert Guidance
Finally, it is always prudent to consult with a mortgage professional before making any loan decisions. The leading mortgage refinance lenders can offer valuable insights and advice regarding the various loan options available. They may even help you secure a more favorable loan rate or lower closing costs than what you might find with other lenders.
Comparing HELOC, Cash-Out Refinance, and Home Equity Loans
While pursuing a cash-out refinance is one of the most popular methods to access your home equity, there are alternative options that might suit your needs better. Two of these alternatives are home equity lines of credit (HELOC) and traditional home equity loans.
A HELOC is a line of credit secured against your home, similar to a credit card. You can withdraw any amount from your credit line and make regular repayments during the draw period, paying interest only on the withdrawn amount. However, once the draw period concludes, you will begin repaying both interest and principal on any outstanding balances.
A home equity loan operates like a conventional mortgage loan, where you receive a lump sum and repay the borrowed amount plus interest over a set period. The key difference between this and a personal loan is that your home acts as collateral, usually resulting in lower interest rates and more favorable terms compared to personal loans.
Both HELOCs and home equity loans serve as second mortgages atop your existing mortgage, meaning you’ll have an additional monthly payment alongside your current mortgage obligations. Conversely, cash-out refinancing replaces your existing mortgage with a larger loan, and as such, cash-out refinances are frequently easier to qualify for than home equity loans and HELOCs, as lenders hold the primary position in case of foreclosure.
Regardless of which option you choose, it is vital to recognize that borrowing against your home poses a risk of losing your property if you fail to make payments. Therefore, conducting careful research into your options and consulting a qualified professional before making any decisions is essential.
Current Trends in Mortgage Refinancing
In 2025, homeowners seized the opportunity presented by declining mortgage rates, opting to refinance their home loans to secure better terms. While many chose to lower their interest rates through rate-and-term refinancing, others opted for cash-out refinancing to access the equity they have built in their homes.
According to data from the analytics firm Intercontinental Exchange, homeowners with mortgages withdrew nearly $23 billion in equity in late summer and early fall. Other popular financing alternatives included home equity loans and lines of credit.
Mortgage rates are projected to remain within the low 6% range throughout 2026, with the possibility of slight reductions. If this trend continues, homeowners with significant equity looking for quick cash sources are likely to keep turning to home equity products.
Frequently Asked Questions About Cash-Out Refinance Lenders
How Long Does It Take to Receive Funds from a Cash-Out Refinance After Closing?
Typically, after closing on a cash-out refinance, it takes about three to four business days for the funds to be disbursed. This delay is primarily due to a federal regulation mandating a three-day grace period, allowing you the opportunity to rescind the loan if you reconsider.
Is a Cash-Out Refinance a Beneficial Choice?
Whether a cash-out refinance is advantageous depends on your individual financial circumstances. Generally, it can be a wise decision if you need access to cash for significant expenses or to pay off high-interest debt. Notable benefits of a cash-out refinance include potentially lower interest rates compared to other debt forms, tax deductibility of paid interest, and the possibility of building equity more rapidly if you utilize the proceeds for home improvements. Nevertheless, it is essential to remember that a cash-out refinance constitutes a loan and carries all associated risks, including the potential loss of your property if payments are not met.
Is a Cash-Out Refinance Subject to Taxes?
A cash-out refinance is not taxable. The loan proceeds are considered tax-free, regardless of how the funds are utilized, as they form part of a loan you will be obligated to repay.
How Much Can I Access with a Cash-Out Refinance?
The amount you can withdraw through a cash-out refinance largely depends on your home’s current value, the existing mortgage balance, and the lender’s loan-to-value ratio requirements. In general, you can cash out up to 80% of your home’s value during a refinance transaction, although this ratio can reach up to 100% in specific cases (such as VA cash-out refinance loans).
Our Criteria for Selecting the Best Cash-Out Refinance Lenders
To identify the top cash-out refinance companies, we evaluated a range of criteria, including customer feedback, loan terms, fees, and eligibility requirements. The following are the key factors considered in our assessment:
- Fees: We scrutinized the fees imposed by cash-out refinance lenders, encompassing origination and closing costs.
- Eligibility Requirements: We analyzed the various requirements for cash-out refinance eligibility (such as credit score, debt-to-income ratio, and LTV).
- Loan Terms: We examined the loan terms provided by each cash-out refinance lender, including interest rates and repayment conditions.
- Customer Feedback: We reviewed customer experiences with each cash-out refinance lender.
- Support Options: We assessed the range of customer support options available from each lender.
- Types of Loans Offered: We investigated the varieties of loans each cash-out refinance lender offers, including FHA, VA, and conventional loans.
- Accessibility: We evaluated each lender’s refinancing availability across different states and the number of physical branches.
- User Experience: We considered the user experience associated with each lender’s website or mobile application.
Overview of Money’s Six Best Cash-Out Refinance Lenders for 2026
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