Compare cash-out refinance rates
Find and compare the current rates on cash-out refinances available in your area. A cash-out refinance replaces your current mortgage with a loan for more than you owed. You take the difference in cash.
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Based on your ZIP code, credit score, loan amount, and other criteria.
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.
Mortgage rate trends (APR)
NerdWallet’s mortgage rate insight
On Monday, Jan. 27, 2020, the average rate on a 30-year fixed-rate mortgage fell three basis points to 3.77%, the average rate on the 15-year fixed mortgage was unchanged at 3.39% and the average rate on the 5/1 ARM went up five basis points to 4.14%, according to a NerdWallet survey of mortgage rates published daily by national lenders. A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR. The average rate on the 30-year fixed is eight basis points lower than on Jan. 21.
Mortgage rates today (APR)
|30-year fixed mortgage rate||3.77%|
|15-year fixed mortgage rate||3.39%|
|5/1 ARM mortgage rate||4.14%|
How to find the current refinance rates
NerdWallet’s mortgage rate tool helps you find competitive, customized cash-out refinance rates. In the “Refine results” section, 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.
Remember, 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 offer a cash-out refinance for up to 80% of your home’s equity; sometimes more. An appraisal will be required to nail down the current market value.
Best uses for cash-out proceeds are for home upgrades, repairs and improvements. Be careful about using your home’s value to pay off credit cards. It’s generally not recommended.
How much equity do I need to get a cash-out refinance?
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.
More about cash-out refinance:
- Cash-out refinance: How to use one
- Pros and cons of a cash-out refinance
- Cash-out refinance calculator