Compare today's cash-out refinance rates
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.
Trends and insights
NerdWallet’s mortgage rate insight
On Friday, January 27th, 2023, the average APR on a 30-year fixed-rate mortgage rose 7 basis points to 6.228%. The average APR on a 15-year fixed-rate mortgage rose 3 basis points to 5.172% and the average APR for a 5-year adjustable-rate mortgage (ARM) rose 2 basis points to 6.608%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 5 basis points higher than one week ago and 264 basis points higher than one year ago.
A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.
Current mortgage and refinance rates
|30-year fixed-rate FHA||5.279%||6.059%|
|30-year fixed-rate VA||5.562%||5.894%|
What are the current cash-out refinance rates?
NerdWallet’s mortgage rate tool helps you find competitive, customized cash-out refinance rates. In the filters above, click or tap the “Refinance” button under “Loan purpose.” Fill in the rest of the details, making sure to select “Yes” on the “Cash-out” button. In moments, you’ll get a rate quote tailored to meet your needs. From there, you can start the process of getting approved for your cash-out refinance.
How does a cash-out refinance work?
A cash-out refinance is a new loan, replacing your current mortgage. You’ll be borrowing what you owe on your existing loan, plus the cash you take out from your home’s equity.
Your home equity is the difference between the current market value of your house and your mortgage balance. For example, if your home is now worth $300,000 and you owe $200,000, you have $100,000 in equity. Put $40,000 of that in your pocket, and your new loan will be $240,000. Closing costs often may be subtracted from the equity draw.
How much cash can I get with a cash-out refinance?
Lenders will limit the cash you take out to 80% to 90% of your home equity. An appraisal will be required to nail down your home’s current market value.
How much equity do I need to get a cash-out refinance?
The amount depends on the type of mortgage and the lender’s refinance requirements. Here’s a ballpark answer: Say closing costs are somewhere around 5%. That may be a little high in some cases, but it gives us a margin of error. With a lender that will write a cash-out refi up to 80% of your home’s value, you’re likely going to need a 75% loan-to-value ratio just to cover the costs. And that’s before you pull any equity out.
Will I pay a fee to get a cash-out refinance?
As with any mortgage refinance, you’ll pay closing costs for a cash-out refinance. Closing costs typically range from 2% to 5% of the total mortgage amount — that’s $7,000 to $17,500 on a $350,000 mortgage.
Is a cash-out refinance a good idea?
A cash-out refinance might make sense if you get a good rate and have a financially sound strategy for using the cash. The best uses for cash-out proceeds are home repairs and improvements, which can increase the value of your home and provide a return on your investment.
What’s the difference between a cash-out refinance and a home equity loan?
A home equity loan or home equity line of credit (HELOC), is a second mortgage that lets you borrow against your home equity. A cash-out refinance typically has a lower interest rate than a home equity loan or HELOC, and refinancing may provide a lower rate than your current mortgage.
More about cash-out refinance:
Alternatives to cash-out refinance:
About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.
Check out our other mortgage and refinance tools
Get your true budget and find a home with ease.
CalculatorCalculate your mortgage
Figure out your estimated payments the easy way.
CalculatorShould You Refinance
Calculate how much you can save by refinancing
Explore more quotes