How the cash-out amount is worked out
| Step | Example |
|---|---|
| Home value × maximum loan-to-value | $400,000 × 80% = $320,000 maximum new loan |
| Minus what you owe | $320,000 − $200,000 = $120,000 |
| Minus closing costs (3% of the new loan) | $120,000 − $9,600 = $110,400 cash |
Maximum loan-to-value by loan type
| Loan type | Typical maximum for cash-out |
|---|---|
| Conventional, main home, 1 unit | 80% |
| Conventional, main home 2–4 units, or second home | 75% |
| Conventional, investment property | 70–75% |
| FHA (main home only) | 80% |
| VA (eligible veterans and service members) | Up to 100%; many lenders cap at 90% |
| USDA | No cash-out refinance |
Limits come from the Fannie Mae and Freddie Mac guides, HUD's FHA handbook and the VA lender handbook. Individual lenders can set lower limits, and credit score, debt-to-income ratio and waiting periods (usually 6–12 months) also apply. Fannie Mae Selling Guide.
Questions
How much cash can I take out in a cash-out refinance?
Usually up to 80% of your home's value for a conventional or FHA loan on your main home, minus what you still owe and the closing costs. VA loans can allow up to 100% for eligible borrowers, though many lenders cap them lower.
What are typical closing costs on a cash-out refinance?
Commonly about 2% to 5% of the new loan amount, covering the appraisal, title, lender and recording fees. Ask lenders for a Loan Estimate to compare.
Is there a waiting period before a cash-out refinance?
Yes. Each loan type has seasoning rules, typically 6 to 12 months of ownership or payments on the current mortgage. Your lender will confirm the rule for your loan.
Does a cash-out refinance restart my loan term?
Yes. The new loan starts a new term. If you had 24 years left and take a new 30-year loan, you'll pay for 6 more years unless you choose a shorter term or pay extra.
Estimates only; this is not a loan offer or financial advice. Your home secures the loan, so borrowing against it puts it at risk if you can't repay. Last reviewed 27 September 2026.