Cash-out refinance calculator: how much cash can you get?
Estimate how much cash you can take out with a cash-out refinance: maximum loan by loan type (80% conventional and FHA), closing costs, net cash, and your new payment.
The short answer
Most lenders cap a cash-out refinance at 80% of your home's value on a one-unit primary home, both conventional (Fannie Mae's Aug. 5, 2026 Eligibility Matrix) and FHA (HUD Mortgagee Letter 2019-11). Your cash is 80% of the value minus your current balance and closing costs. On a $500,000 home with a $280,000 balance, that is $120,000 before costs, or about $108,000 after 3% closing costs.
How the cash-out refinance formula works
Lenders start from the appraised value and apply a maximum loan-to-value ratio (LTV). Maximum loan = home value × maximum LTV. The new loan first pays off your existing mortgage. What is left, minus closing costs, is your cash at closing.
Worked example: $500,000 value × 80% = $400,000 maximum loan. $400,000 − $280,000 balance = $120,000. Closing costs of 3% on the new $400,000 loan are $12,000, so you net about $108,000. At the week's average 30-year rate of 7.32% (Freddie Mac), the new principal-and-interest payment on $400,000 is about $2,748 a month.
Maximum loan-to-value by loan type (2026)
| Loan type | Property | Max LTV on cash-out | Source |
|---|---|---|---|
| Conventional (Fannie Mae) | 1-unit primary home | 80% | Eligibility Matrix, Aug. 5, 2026 |
| Conventional (Fannie Mae) | 2-4 unit primary home | 75% | Eligibility Matrix |
| Conventional (Fannie Mae) | Second home | 75% | Eligibility Matrix |
| Conventional (Fannie Mae) | Investment, 1 unit / 2-4 units | 75% / 70% | Eligibility Matrix |
| FHA | Primary home only | 80% | HUD Mortgagee Letter 2019-11 |
Lenders can set lower limits than these maximums, and Fannie Mae requires six months of reserves on Desktop Underwriter cash-out loans when the debt-to-income ratio is above 45%.
Waiting periods before a cash-out refinance
- Conventional (Fannie Mae): the mortgage being paid off must be at least 12 months old (note date to note date), and at least one borrower must have been on title for six months, with exceptions for inherited property and the delayed-financing rule for homes bought with cash.
- FHA: the home must have been your principal residence for the 12 months before the case number is assigned, with on-time payments for the previous 12 months (HUD Handbook 4000.1).
When a cash-out refinance doesn't make sense
A cash-out refinance reprices your whole balance, not just the cash. If your current rate is well below today's average, a HELOC or home equity loan usually costs less because your low-rate first mortgage stays in place. Compare both in cash-out refinance vs. HELOC in 2026.
Frequently asked questions
How much cash can I get from a cash-out refinance?
Up to the maximum loan (usually 80% of your home's value on a one-unit primary home) minus your current balance and closing costs. On a $500,000 home with $280,000 owed, that is $120,000 before closing costs.
What is the maximum LTV for a cash-out refinance?
80% for a conventional one-unit primary home and for FHA. Fannie Mae allows 75% on 2-4 unit homes, second homes and one-unit investment properties, and 70% on 2-4 unit investment properties.
How soon can you do a cash-out refinance after buying?
For a conventional loan, the mortgage being paid off must be at least 12 months old. FHA requires 12 months of living in the home as your principal residence. Fannie Mae's delayed-financing exception lets cash buyers take cash out sooner.
Do closing costs reduce my cash-out amount?
Yes, unless you pay them out of pocket. Closing costs typically run 2% to 5% of the new loan amount and are charged on the whole loan, not only the cash portion.
Is cash from a refinance taxable?
No. Loan proceeds are not income. Interest on the cash portion is deductible only if the money is used to buy, build, or substantially improve the home that secures the loan (IRS Publication 936).
Sources
- Fannie Mae Eligibility Matrix (Aug. 5, 2026)
- Fannie Mae Selling Guide B2-1.3-03: Cash-out refinance transactions
- HUD Mortgagee Letter 2019-11: 80% maximum LTV on FHA cash-out refinances
- HUD Single Family Housing Policy Handbook 4000.1
- Freddie Mac Primary Mortgage Market Survey (weekly averages)
- IRS Publication 936: Home mortgage interest deduction