Where to find the best cash-out refinance rates in 2025
Looking for the lowest cash-out refinance rate available right now? We analyzed the most recent HMDA data to see which lenders offered the best cash-out refinance rates on average.
While your actual rate will depend on personal factors—like your credit score, loan-to-value ratio, and loan amount—this list gives a real-world look at how top refinance lenders have performed. If you’re thinking about cash-out refinancing in 2025, this is a smart place to start.
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Note: The cash-out refinance rates cited are from the most recent HMDA reporting and are for informational comparison only.
Banks and lenders with the best cash-out refinance rates
If you’re looking for the best cash-out refinance rates, it’s worth knowing how different mortgage lenders actually stack up. We analyzed average 30-year cash-out refinance rates from the 50 largest lenders. These average rates come from loan-level data filed under the Home Mortgage Disclosure Act (HMDA), which mortgage companies are required to submit each year.
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Based on that data, here are the 25 lenders offering the lowest average cash-out refinance rates in 2025:
| Lender | Average Rate |
| 1. Navy Federal Credit Union | 6.01% |
| 2. American Financing | 6.06% |
| 3. The Federal Savings Bank | 6.30% |
| 4. PennyMac | 6.34% |
| 5. Veterans United | 6.40% |
| 6. GoodLeap | 6.47% |
| 7. Mutual of Omaha | 6.52% |
| 8. Freedom Mortgage | 6.53% |
| 9. Movement Mortgage | 6.54% |
| 10. loanDepot | 6.54% |
| 11. Rocket Mortgage | 6.56% |
| 12. Guaranteed Rate | 6.74% |
| 13. Mr. Cooper | 6.79% |
| 14. Wells Fargo | 6.82% |
| 15. CrossCountry Mortgage | 6.84% |
| 16. Chase Bank | 6.88% |
| 17. Reliance First Capital | 7.12% |
| 18. CMG Financial | 7.17% |
| 19. United Shore Financial Services | 7.28% |
| 20. NewRez | 7.44% |
| 21. Carrington Mortgage Services | 7.55% |
| 22. New American Funding | 7.58% |
| 23. Guild Mortgage | 7.70% |
| 24. New Day Financial | 7.70% |
| 25. AmeriSave | 8.07% |
Cash-out refinance rates have been trending downward in 2025, driven by broader economic shifts and changes in the real estate market. Recent data shows the average 30-year fixed rate for a conventional loan hovering around %. Inflation, employment numbers, and Federal Reserve policy continue to shape these trends.
Our lender rankings use the most recent HMDA data, giving a clear view of where homeowners have recently secured the lowest cash-out refinance rates. To see what you might qualify for now, it’s smart to check today’s mortgage rates and compare offers from multiple refinance lenders.
How to secure your best cash-out refi rate
Landing a great cash-out refi rate could save you a ton of money over the life of the loan. These tips can help you lock in a rate that actually puts money back in your pocket.
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Shop around and negotiate
To find the best cash-out refinance rates, shop offers from multiple lenders and negotiate with loan officers to secure a lower mortgage rate. Shopping around can help you save on upfront costs and long-term mortgage interest.
Be sure to compare annual percentage rates (APR) because they include not only the interest rate but also any additional fees or costs associated with the loan, providing a more comprehensive view of the true cost of borrowing.
Improve your credit score
A higher credit score can help you qualify for better cash-out refinance rates. Work on raising your credit by paying bills on time, reducing credit card debt, and correcting any errors on your credit report.
Lower your LTV
Lowering your loan-to-value ratio (LTV) can also lead to more favorable mortgage refinancing rates. Consider waiting until you have more equity in your home or making a larger down payment to secure the best cash-out refinance rates.
Factors affecting cash-out refinance rates
If you know what affects cash-out refinance rates, you’ve got a better shot at getting a good deal. The more you understand what lenders look at, the easier it is to set yourself up for a lower rate.
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Credit score and history
Your credit history and credit score both play a significant role in determining your best cash-out refinance rates. Lenders typically offer the best rates to borrowers with higher credit scores and a history of timely payments.
Loan-to-value ratio (LTV)
Your LTV is another crucial factor affecting cash-out refinance rates. A lower LTV generally results in better rates, as it represents less risk to the lender. Keep an eye on your home’s value and your current mortgage balance to determine your LTV.
Loan term and type
The loan term and type you choose can also impact your cash-out refinance rates. Shorter loan terms often have lower interest rates but higher monthly payments. Consider your personal finances and long-term goals when selecting a loan term and type.
How much money can you get in a cash-out refinance?
Most lenders let you borrow up to 80–90% of your home’s value, minus your current mortgage balance. This is based on your loan-to-value ratio (LTV), which varies by loan type and lender.
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Example: If your home is worth $500,000 and you owe $250,000, an 80% LTV allows a new loan of $400,000. Subtract your existing balance to get your maximum cash-out amount: $400,000 – $250,000 = $150,000.
So, you’d walk away with $150,000 in cash after paying off your existing mortgage.
Keep in mind, your actual amount may be lower based on your credit score, debt-to-income ratio, or how you plan to use the funds. Some lenders may limit use of cash to things like home improvements.
Cash-out refinance costs and fees
When comparing the best cash-out refinance rates, don’t overlook the fees. Cash-out refinancing typically comes with closing costs between 2% and 5% of your loan amount, which is similar to what you’d pay on any new mortgage.
You can pay these costs upfront or roll them into your new loan. Folding them into the mortgage spreads them out over the life of the loan, which may slightly increase your monthly payments, but you’ll also pay interest on those fees.
Example: On a $400,000 cash-out refinance with $10,000 in closing costs, adding those costs to a 30-year loan at 4% interest would mean paying about $19,100 more in interest over time. If you can cover the fees upfront, you’ll save money overall.
Refinance closing costs typically include:
- Loan origination fee: This fee covers the lender’s administrative costs and is typically 1%–1.5% of the loan amount. For a $400,000 cash-out refinance, the origination fee would be $4,000–$6,000.
- Discount points (optional): Discount points are upfront fees paid to lower your interest rate. Each point costs 1% of the loan amount. For a $400,000 loan, one discount point would cost $4,000.
- Application fee: This fee covers the cost of processing your loan application and ranges from $75 to $300.
- Credit check fee: Lenders charge a fee to pull your credit report, typically around $25.
- Home appraisal fee: An appraisal is required to determine your home’s current value. Appraisal fees range from $500 to $1,000 or more, depending on your home’s size and location.
- Title search and title insurance: These fees protect you and the lender against claims on your property’s title. They range from $300 to $2,000 or more.
- Survey fee: A survey may be required to verify your property’s boundaries, costing $150–$400.
- Attorney fees: In some states, an attorney is required to review and close the loan. Attorney fees range from $500 to $1,000.
- Recording fees: Local governments charge fees to record the new mortgage, typically $25–$250, depending on your location.
- Processing and/or underwriting fee: These fees cover the cost of preparing and evaluating your loan and range from $300 to $900 each.
- Prepaid taxes and homeowners insurance: You may be required to prepay a portion of your property taxes and homeowners insurance at closing. The amount varies based on your location and due dates.
Understanding cash-out refinance rates
Thinking about a cash-out refinance? It’s important to understand how cash-out refinance rates work and how they compare to regular refinance rates. It’ll help you figure out what makes the most sense for your budget and plans.
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What is a cash-out refinance rate?
A cash-out refinance rate is the interest rate charged on a new loan that replaces your existing mortgage with a larger loan amount. The difference between your current loan balance and the new mortgage is given to you in a lump sum, which you can use for various purposes, such as home improvements, debt consolidation, or other financial needs.
How cash-out refinance rates work
Several factors affect cash-out refinance rates, including your credit score, loan-to-value ratio (LTV), and market conditions. Lenders calculate your LTV by dividing your loan amount by your home’s value. A higher LTV signals more risk to the lender and often results in a higher interest rate. If your LTV goes above 80%, you might also have to pay private mortgage insurance (PMI), which increases your total borrowing costs.
Comparing cash-out refinance rates to regular refinance rates
Cash-out refinance rates are usually higher than regular refinance rates because lenders see them as riskier; you’re borrowing more and increasing your loan-to-value ratio. That added risk often leads to higher interest rates, but even then, a cash-out refinance can be a cost-effective way to access your home’s value.
To get the best cash-out refinance rates, it’s important to compare offers from multiple lenders, keeping an eye on closing costs, loan terms, and how each option aligns with your financial goals. Finding the lowest cash-out refinance rate could mean saving thousands over the life of the loan.
Types of cash-out refinance loans
Homeowners searching for the best cash-out refinance rates can choose from several options based on their current mortgage loan and financial profile. The most common cash-out refinancing types include conventional, FHA, and VA loans.
Conventional cash-out refinance
A conventional loan cash-out refinance is ideal for borrowers with good credit scores and more than 20% home equity. This option allows homeowners to eliminate mortgage insurance premiums if their current loan is an FHA loan. Generally, it requires a loan-to-value ratio of 80% or less and a debt-to-income ratio of 43% or less.
FHA cash-out refinance
An FHA loan cash-out refinance allows borrowers to access up to 80% of their home’s value. It requires the home to be the primary residence for the past 12 months and typically requires a minimum credit score of 600 and upfront mortgage insurance fees.
VA cash-out refinance
A VA loan cash-out refinance is available to eligible veterans and active-duty service members. It allows borrowing up to 100% of the home’s equity and requires a credit score of at least 580–620 and a debt-to-income ratio below 41%, which may vary by lender. No monthly mortgage insurance is required.
When considering a cash-out refinance for the first time, compare offers from multiple lenders to find the best cash-out refinance rates and terms for your specific situation. Keep in mind that cash-out refinancing may extend your 30-year mortgage repayment period and increase your monthly payments.
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Pros and cons of cash-out refinancing
Cash-out refinancing can help you reach key financial goals, but it’s important to weigh the risks. Knowing the best cash-out refinance rates makes it easier to decide if this move fits your strategy.
Pros:
- Access to home equity at lower interest rates compared to other loan types
- Consolidate high-interest debts into a single, lower-interest payment
- Fund major expenses like home improvements, education, or starting a business
Cons:
- Potential for private mortgage insurance (PMI) if the new loan exceeds 80% of the home’s value
- Extended repayment period, which may prolong the time it takes to pay off your mortgage loan
- Increased risk of foreclosure if you’re unable to make the higher monthly mortgage payments
To find the best cash-out refinance rates, compare multiple lenders and use a refinance calculator to see how the numbers work for you.on your financial situation. By carefully evaluating your options and understanding the potential consequences, you can make an informed decision about whether cash-out refinancing is the right choice for you.
Cash-out refinance alternatives
If a refinance calculator shows that cash-out refinancing doesn’t match your financial goals, especially after factoring in potential PMI costs, you still have several alternatives to consider.
- Home equity line of credit (HELOC): A HELOC works similarly to a credit card and allows homeowners to borrow against their home equity as needed. This flexibility can be beneficial, and interest rates are typically lower than credit card rates
- Home equity loan: A home equity loan is a second mortgage that gives homeowners a one-time lump sum of money, much like a cash-out refinance. However, this does not involve replacing the existing mortgage
- Personal loan: For those who don’t want to tap into their home equity or who don’t have enough equity built up, personal loans can be a viable alternative. These are unsecured loans that can be used for any purpose
- Down payment savings: If your goal is to purchase a second home or rental property, it might make more sense to put aside savings towards a down payment. This will lower the amount you need to borrow and potentially eliminate the need for PMI
- 401(k) loan: Some retirement plans allow you to borrow from your savings, typically at a low interest rate. However, borrowing from your 401(k) should be a last resort as it can impact your long-term retirement savings
FAQs about finding the lowest cash-out refinance rates
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You can use the money from a cash-out refinance however you want. Common uses include home improvements, paying off high-interest debt like credit cards or personal loans, covering college tuition, or investing in real estate or a business.
To qualify for the lowest cash-out refinance rates, aim for a credit score of 740 or higher. Some lenders allow scores as low as 620—or even 600 with an FHA cash-out refinance—but expect higher interest rates if your score is below average.
Yes. Cash-out refinance rates are typically 0.125% to 0.25% higher than standard refinance rates, since lenders view them as riskier due to the larger loan amount.
According to the most recent data, the lowest average cash-out refinance rates came from Navy Federal Credit Union at 6.01%, followed by American Financing at 6.06%, and The Federal Savings Bank at 6.30%. While these lenders had the best cash-out refinance rates overall, your personal rate may vary based on your credit score, loan-to-value ratio, and other factors. To find your best rate, compare quotes from multiple refinance lenders.
Yes, FHA loans allow cash-out refinancing, typically up to 80% loan-to-value. If you have more equity, you might qualify for a conventional cash-out refinance, which could offer a lower interest rate and let you avoid mortgage insurance.
Yes, and it’s often one of the best cash-out refinance options available. Many VA lenders let you borrow up to 100% of your home’s value, giving you access to all your equity with no down payment required.
Yes, but you’ll likely need a credit score in the 700s and significant home equity. Cash-out refinancing for jumbo loans typically comes with stricter requirements and higher closing costs
Absolutely. You can use a cash-out refinance to switch from an adjustable-rate mortgage to a fixed-rate loan or to shorten your loan term, both of which can lower your long-term interest payments.
What are today’s cash-out refinance rates?
Need cash? A cash-out refinance lets you tap your home equity at a competitive rate. Even with mortgage rates up, many homeowners still qualify for strong offers.
Click below to compare lenders and find your lowest cash-out refinance rate today.
1Rate and fee data were sourced from self-reported loan data that all mortgage lenders are required to file each year under the Home Mortgage Disclosure Act. Averages include all 30-year non-cash-out refinance loans reported by each lender for the previous year. Your own rate and loan costs will vary.
2Top lenders for 2025 based on 2024 HMDA data sourced directly from the FFIEC, 2024 Modified LAR.
Written by: Peter Warden