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Quick Summary

Money’s review of 34 banks, credit unions, and online lenders names Better as best overall and Rocket Mortgage as fastest, with funding possible in 21 days.
Most lenders cap cash-out refinances at an 80% loan-to-value ratio (LTV) and require a 620 credit score; VA loans allow up to 100% LTV, and FHA loans require scores as low as 500.
Homeowners hold a record $18 trillion in equity, $11.4 trillion of it tappable, according to ICE Mortgage Technology’s September Mortgage Monitor. Only one in five homeowners who tapped their equity in the second quarter of 2026 used a cash-out refinance.

Our top picks for the 8 best cash-out refinance lenders of November 2026

Better: Best Overall
Rocket: Best for Fast Closing Times
Veterans United: Best for VA Cash-Out Refinancing
SoFi: Best Online Cash-Out Refinance Lender
Carrington: Best for Self-Employed Borrowers
New American Funding: Best for Customer Service
AmeriSave: Best for Low-Credit Borrowers
Citibank: Best National Bank

Pros

Advertises sample cash-out rates
No lender fees
Multiple loan term options
HELOC vs. cash-out refinance calculator
AI tool “Betsy” helps you compare equity options

Cons

Interest rates not the lowest among lenders considered
No in-person branches

HIGHLIGHTS

Estimated closing costs:
No lender fees. Third-party fees, such as appraisal and title recording fees, vary.

Loan and term options:
Conventional cash-out, 10-, 15-, 20- and 30-year fixed rate mortgages; 10/6, 7/6 and 5/6 adjustable rate mortgages

Minimum credit score:
620

Maximum loan-to-value ratio:
80%

Availability:
50 states and Washington, D.C

Why we chose it: Better (NMLS #330511) received the highest combined score during our evaluation period because of its transparency and flexible loan and term options, among other factors. Better also features a fast loan application process that takes minutes to complete. It’s one of the few companies that publishes sample rates specifically for cash-out refinancing, and you can get a personalized rate estimate in as little as three minutes without impacting your credit score.
The lender also boasts “Betsy,” an AI tool that helps you compare your equity options and choose the best path forward.

Pros

Funding in as little as 21 days
Easy online application
Services its own loans
Above-average ranking in JD Power 2025 U.S. Mortgage Origination Satisfaction Study

Above-average ranking in JD Power 2025 U.S. Mortgage Servicer Satisfaction Study

Cons

One regulatory action in the last five years

No sample rate for cash-out refinance

HIGHLIGHTS

Estimated closing costs:
2% to 5% of the loan amount, can be rolled into the loan

Loan and term options:
Conventional cash-out refinance, FHA cash-out, jumbo cash-out, VA cash-out 30-year term, fixed rate loan

Minimum credit score:
580 (620 for jumbo cash-out loans)

Maximum loan-to-value ratio:
80%

Availability:
50 states and Washington, D.C.

Availability: 50 states and Washington, D.C.
Why we chose it: Rocket Mortgage (NMLS #3030) has the fastest potential funding time of all the lenders we reviewed at 21 days, which is advantageous for borrowers who are pressed for time and meet all the requirements. The lender services all of its loans (except jumbo), which means you’ll always deal with the same company, and its credit score minimums are low. Rocket also has a long history of earning recognition for high-quality customer service and a wide range of cash-out loan options to choose from, including jumbo cash-outs and VA cash-outs.

Pros

Advertises sample cash-out refinance rates
Specializes in VA loans
High customer satisfaction ratings

Cons

Limited loan options
Limited number of physical branches
Only military members and their spouses are eligible

HIGHLIGHTS

Estimated closing costs:
2% to 5% of loan amount

Loan and term options:
VA cash-out refinance, jumbo cash-out refinance, 30-year terms

Minimum credit score:
620

Maximum loan-to-value ratio:
90% to 100% on VA cash-out refinancing

Availability:
All 50 states and Washington, D.C. online; branches in only 17 states

Why we chose it: Veterans United Home Loans (NMLS #1907) is an experienced lender that understands the complexity of VA loans, funding fees, entitlement and military service requirements. You can convert an existing conventional or FHA loan into a VA cash-out that typically closes in 45 to 60 days, or refinance an existing VA loan. Veterans United is also highly rated for customer satisfaction on third-party sites such as Trustpilot (4.9 out of 5) and the Better Business Bureau (4.72 out of 5). Rates currently start at 6.99% for jumbo cash-outs and 7.5% for regular VA cash-outs.

Pros

Members save $500 to $1,000 at closing

Relatively fast closing times
No prepayment penalty

Cons

No physical branches
No sample rates available

HIGHLIGHTS

Estimated closing costs:
3% to 5% of loan amount

Loan and term options:
Conventional, VA cash-out refinances. 10-, 15-, 20- and 30-year terms

Minimum credit score:
As low as 580; 620 preferred

Maximum loan-to-value ratio:
80% conventional; 100% VA

Availability:
50 states and Washington, D.C.

Why we chose it: SoFi (NMLS #696891) has an easy-to-use application process, and you can get a rate estimate within minutes without a hard credit pull. The lender offers several repayment terms, giving borrowers flexibility if they don’t want to be locked into a 30-year loan, and it may approve borrowers with credit scores as low as 580. SoFi members can save $500 on closing costs, while SoFi Plus members can save $1,000. The lender boasts 4.4 out of 5 stars on Trustpilot, with 85% of reviewers giving their experience either 4 or 5 stars.

Pros

Multiple cash-out loan options
Below-average credit score requirements
Alternate income verification acceptable
High loan amounts

Cons

No sample interest rates
No closing cost information displayed
Below-average ranking in JD Power 2026 U.S. Mortgage Origination Satisfaction Study
Some products not available in every state

HIGHLIGHTS

Estimated closing costs:
Not displayed

Loan and term options:
Conventional, FHA, VA, VA IRRRL, self-employed and investor cash-out refinances; 30-year terms; fixed and adjustable rate options

Minimum credit score:
As low as 500 for some options; 620 for conventional cash-out refinance

Maximum loan-to-value ratio:
80%

Availability:
50 states and Washington, D.C. (some products not available in Texas, though)

Why we chose it: Carrington Mortgage (NMLS #2600) stands out for its flexible eligibility requirements. The Flexible Advantage refinance program can accept bank statements instead of tax returns as income documentation, making it a good option for self-employed borrowers and investors. The lender also accepts applications from those with a history of late payments or a recent bankruptcy, and borrowers can cash out up to $250,000. Some of its loans allow cash-out amounts of up to $750,000.

Pros

High customer service ranking on Trustpilot and BBB
Above-average ranking in JD Power 2025 U.S. Mortgage Servicer Satisfaction Study
Fast closing time
Low credit score requirement

Cons

No sample rate information
Limited loan options

HIGHLIGHTS

Estimated closing costs:
2% to 6%

Loan and term options:
Conventional, FHA, VA

Minimum credit score:
580

Maximum loan-to-value ratio:
80%

Availability:
50 states, Washington, D.C. and Puerto Rico

Why we chose it: New American Funding (NMLS #6606) had the highest customer satisfaction rating on Trustpilot of all the lenders we reviewed, receiving 4.7 stars. The lender also scores an A+ with the BBB and ranks above average in J.D. Power’s 2026 U.S. Mortgage Servicer Satisfaction Study. Beyond these rankings, New American Funding also accepts lower-than-average credit scores and can close the loan in as little as 30 days.

Pros

Credit scores as low as 500
Debt-to-income ratio of 45% to 50% or less
Flexible loan terms
High customer satisfaction rankings on Trustpilot and BBB

Cons

Not available in all states
Few physical branches

HIGHLIGHTS

Estimated closing costs:
2% to 5% of loan amount

Loan and term options:
Conventional, FHA and VA loans. 10-, 20- and 30-year terms, fixed interest rate

Minimum credit score:
500 for FHA, 620 for conventional cash-out

Maximum loan-to-value ratio:
80% for conventional cash-out, higher for VA loans

Availability:
49 states and Washington, D.C.; not available in New York

Why we chose it: AmeriSave (NMLS #1168) can accept credit scores as low as 500 for its FHA cash-out refinance. The lender can also accept a debt-to-income ratio of up to 50%. Income can be verified using tax returns, pay stubs and bank statements, among other documentation, and AmeriSave can close on the loan in as little as 31 days. Several loan terms are available, and the lender’s customer satisfaction scores are high.

Pros

Relationship rewards available
Has several loan options
Ranks #1 in JD Power 2025 U.S. Mortgage Origination Satisfaction Study

Cons

No sample cash-out rates
Some loan details only available by speaking with a loan officer

HIGHLIGHTS

Estimated closing costs:
2% to 6%

Loan and term options:
Conventional, FHA, VA and jumbo

Minimum credit score:
Varies by loan type and other factors

Maximum loan-to-value ratio:
80%

Availability:
50 states and Washington, D.C.

Why we chose it: Citibank (NMLS #412915) had our highest weighted score among all the national banks we considered, based on its wide availability, its multiple loan options and high customer service ranking with JD Power.
A big plus is its relationship reward program for new and existing customers who have a deposit account. Borrowers can obtain a $500 credit towards closing costs or an interest rate discount ranging from 0.125% to 0.5%, depending on the account balance.
However, it ranks poorly on other review sites such as Trustpilot (1.1 stars) and BBB (D-). The New York Attorney General also recently sued the bank for fraudulent activity.

Other lenders we considered
We also reviewed other lenders that didn’t make our top list but may be good options for many borrowers.
Navy Federal Credit Union: Navy Federal (NMLS #399807) specializes in VA loans and offers competitive interest rates and worldwide coverage. You can cash out up to 100% of your equity, and it offers a variety of fixed- and variable-rate loan options. Navy Fed also offers conventional loan cash-out refinancing.
Why we didn’t choose it: Navy Federal came in a close second to our top VA lender, and the credit union is a good option for active and retired service members. However, Veterans United edged it out due to its deep experience and higher-rated customer service.
What you need to know about cash-out refinancing
Cash-out refinancing can help you improve your financial situation in several ways. You can get a new loan at a lower interest rate, which can help reduce your monthly payments. At the same time, you can take advantage of the equity you’ve gained in your home and use it to help pay down higher-interest debt, renovate your property to better suit your needs or take care of a large medical bill.
However, like any other financial tool at your disposal, you need to understand the ins and outs of a cash-out refinance to ensure it is the right option for you. It also comes with costs that must factor into the equation. This guide provides the most important information you need to make a more informed decision.
What is a cash-out refinance?
A cash-out refinance is a mortgage that allows you to pay off an existing loan and convert part of your home equity into cash. You are basically swapping one loan for another, larger mortgage. You’ll receive a lump-sum payment when the loan closes, which you can use for any purpose, and start paying the new loan in monthly installments just like your original mortgage.
The main reason for this type of refinancing is to access cash at a lower interest rate compared to a personal loan or credit card.
For example, your current mortgage has an outstanding balance of $300,000, and your home is appraised at $450,000. This means that you have $150,000 in equity, because you owe less than the home is worth. If you take out a $375,000 cash-out refinance loan, $300,000 would go to paying off your original mortgage, and you get a lump-sum payment of $75,000, which you can use any way you wish. You’ll have a new loan with a new interest rate, monthly payment and term.
How does a cash-out refinance work?
If you are considering a cash-out refinance, you’ll first need to establish how much equity you have in your home. To do this, you’ll need to get your home appraised to determine its market value. Next, deduct any outstanding loan balance from the value. As previously mentioned, the difference between the two amounts is your equity.
The above is an important step because most lenders limit how much they lend to 80% of your available equity (you must retain at least 20% ownership of the home). This calculation is known as the loan-to-value (LTV) ratio, and you’ll see it expressed as 80%/20% LTV or just 80% LTV.
However, there are exceptions. Some lenders are willing to lend up to 90% of your equity, depending on your financials. If you’re a veteran and are planning to do a VA cash-out refinance, you will be able to access up to 100% of your home equity, although most VA lenders have a 90% cap.
A cash-out refinance differs from other products that let you access your home equity because you replace one loan with another and keep a single monthly payment. A home equity loan or a home equity line of credit (HELOC), for example, is a second lien on your home and requires you to make monthly payments in addition to your primary mortgage payment.
Cash-out refinance rates in 2026
Current mortgage rates remain elevated compared to pandemic and pre-pandemic averages. Freddie Mac’s benchmark rate survey has averaged close to 7% for a 30-year fixed-rate mortgage since August.
If you are considering a cash-out refinance, you can expect to pay higher rates compared to a rate-and-term refinance. By increasing the loan amount, you reduce your home equity and increase your LTV. Lenders will place a higher risk on cash-out refinances in part because they stand to lose a larger amount if you default on the loan.
The higher monthly payments resulting from a larger loan also affect your debt-to-income ratio (DTI), or the ratio the lender uses to determine how much of your monthly income goes toward paying your debts. A higher DTI also increases the lender’s risk.
To offset these risks, lenders charge a higher interest rate — anywhere from 0.125% to 0.5% higher. The exact rate a lender offers depends on several factors, including the lender, your location, your credit score, your LTV and DTI, your income and overall market conditions.
How to choose a cash-out refinance lender
To find the right lender, shop around and compare rates and terms from several lenders. These are the most important areas you want to compare.
Rates
As mentioned before, interest rates vary widely among mortgage lenders. Therefore, the best way to find the right rate is to compare offers from several sources. Research by Freddie Mac has shown that comparing rates from three to five different lenders can save $1,200 or more per year.
Don’t limit yourself to a specific type of lender either (such as a brick-and-mortar bank). Look at a variety of loan providers, including online banks and lenders, mortgage brokers and credit unions. Each one will have a rate estimator tool you can use to get a ballpark figure, and you can apply to several lenders within two weeks without significantly hurting your credit score. Remember, your final rate will depend on your financial information and credit score.
Closing costs
You’ll have to pay closing costs on a cash-out refinance. These costs include lender fees for the loan origination and underwriting, appraisal fees, title recording fees and taxes, among other charges.
These fees typically range from 2% to 6% of the loan amount, though some lenders cap them at 5%. Some lenders may waive part or all of these fees if you meet certain eligibility requirements. You can pay these fees out of pocket when the loan closes or roll them into the new mortgage, although the latter option will increase your monthly payment and result in more long-term interest costs.
LTV limit
Your loan-to-value ratio measures the loan amount versus a home’s appraised value. The lower your LTV, the more equity you have in your home, and the more you can cash out.
This ratio is calculated by dividing the loan amount by the appraised value, then multiplying by 100 to express it as a percentage. For example, if your home is valued at $400,000 and your outstanding mortgage balance is $250,000, your LTV would be calculated as follows:
$250,000 (loan balance) divided by $400,000 (appraised value) = 0.625 x 100 = 62.5% LTV
Most lenders cap the LTV they will accept at 80%, although some will accept up to 85% or 90%. VA loans have a maximum LTV of 100%.
Credit score minimums
Lenders use your credit score to help them determine your creditworthiness and how likely you are to pay your loan on time. The higher your credit score, the lower the perceived lending risk, resulting in lower interest rates and monthly payments compared to a borrower with a lower score.
Most refinance lenders require a minimum credit score of 620 for a cash-out refinance, although some lenders may accept a lower score or alternative income sources. The type of loan you apply for can also determine the minimum score requirement. FHA and VA loans, for example, will accept scores as low as 500 if you have compensating factors. Ask different lenders about their score requirements and whether you qualify before applying.
Funding speed
Receiving the money from the cash-out refinance typically takes 30 to 45 days after you start the application process and are approved for the loan. This time frame includes the three days during which you have the right of rescission, when you can back out of the loan even if you’ve already signed the closing documents. Some online lenders may offer shorter funding times because uploading documents and e-closing can speed up the process.
When comparing lenders, ask about the average time to close and fund the new mortgage. Your loan officer should be able to provide an approximate timeframe. Remember, however, that delays can happen if required documentation is missing, your financial situation changes after you start the application, or an appraisal takes longer than expected. You can minimize the risk of delay by having all required paperwork on hand when you start the process.
Transparency
Refinancing your home is a big financial decision, so the more information you have upfront, the better. Look for lenders who are transparent about the fees and other costs involved in getting a cash-out loan, their requirements, and the factors that affect the interest rate they’ll offer.
Some lenders display a lot of this information on their websites, including sample interest rates. For others, you’ll have to start an application to see the information. Once you receive a loan estimate, make sure you understand the loan’s full cost. Ask the loan officer about any unusual or surprise fees that haven’t been mentioned before. You can always walk away from the loan if you feel uncomfortable about the final terms and costs.
Pros and Cons of a cash-out refinance

Cash-out refinance pros and cons

Pros

Cons

Access to large amounts of cash, depending on home equity

Risk of foreclosure if your monthly payments increase and you fall behind on your payments

Lower interest rates compared to personal loans and credit cards

Paying more interest over the life of the new loan if you extend the repayment term, even if the interest rate is lower than the original mortgage

Can consolidate higher interest debt into one single payment

You reduce your home equity

Extended repayment term keeps monthly payments low

Have to pay 2% to 6% in closing costs

Interest paid is tax deductible if funds are used to buy, build or improve your home

Could increase your overall debt load

How to apply for a cash-out refinance
Each lender has its own list of documents and requirements for a cash-out refinance. The following is a list of the most commonly asked-for information you should be ready to provide:

W-2 forms (or 1099 forms) from the past two years or signed federal tax forms for the past two years if self-employed
Pay stubs covering the last 2 months
Employer contact information or profit and loss statements if self-employed
Checking and savings account bank statements covering the last two months
Account statements for retirement or investment accounts
Documentation for any large bank deposits or credit issues
Statements for your current mortgage and any other lien (such as a home equity loan or line of credit) on the property
Proof of valid homeowners insurance
Current property tax statement
Valid government ID (passport or Real ID driver’s license)

A lender may require additional financial statements or documentation. Ask what information you’ll need to submit when you apply for a loan to ensure you gather all the paperwork beforehand.
Once you submit an application, the lender will review your financials and provide you with a loan estimate. This document details the new loan amount, interest rate and monthly payments, as well as the closing costs and cash amount you would receive if approved. Keep in mind that the numbers in this document are estimates and may differ slightly at closing. If you have any questions, this is a good moment to ask.
Next, the lender will order a home appraisal to determine your home’s current market value and your available LTV. Loan approval will be based on the information you provide and the appraisal report. Once you’re approved, you’ll set a closing date and pay the associated closing costs. You’ll receive the cash a few days after closing.
Cash-out refinance requirements
These requirements are the most common among cash-out refinancing lenders, but they can vary. Always ask the lender about their specific requirements.

Minimum requirements for a cash-out refinance

More than 20% equity

Minimum 620 credit score

50% or less debt-to-income ratio

Loan seasoning: the current loan must be at least a year old

Pay 2% to 6% in closing costs

Alternatives to cash-out refinancing
You have other options for tapping into your home equity if a cash-out refinance isn’t the right fit.
Home equity loans (HELOANs): These are second mortgages that allow you to access up to 80% of your home equity. You can keep your original mortgage while accessing cash, but you’ll add a second monthly payment to your housing costs.
Home equity line of credit (HELOC): A HELOC differs from a HELOAN in that it works like a credit card. You can access a pool of cash during the draw period and pay interest only on the amount you withdraw. You can continue to draw from the line of credit until the repayment period starts (usually about 10 years), after which you will pay both interest and principal and can no longer access the cash.
Home equity investment (HEI): Also known as a home equity agreement or home equity sharing. You access your home equity by selling a portion of that equity to an investment company. Once the agreement ends or you sell the house, you repay the original investment amount plus a percentage of your home’s gain in value.
Latest news in cash-out refinancing
Home equity levels increased to a record high of $18 trillion during the second quarter this year, $11.4 trillion of which is considered tappable, meaning homeowners could access their equity and still retain a 20% stake in the home, according to ICE Mortgage Technology’s September Mortgage Monitor report.
That equity is a source of cash you can use to consolidate higher-interest debt, make home improvements, or cover medical debt — all at a lower interest rate than a personal loan or credit card. According to the annual Home Equity Study from the Mortgage Bankers Association (MBA), the majority of home equity products are used to consolidate debt or pay for home renovations.
Data from Cotality shows that the average homeowner has about $310,000 in equity for a total of $34.9 trillion nationwide. In the secord quarter of 2026, home equity and HELOC origiations jumped almost 20%. Still, homeowners tapped just 0.1% of the total tappable equity available.
Cash-out refinance lenders FAQs

Best cash-out refinance lenders FAQs
Do you have to pay taxes on a cash-out refinance?
No. The proceeds of a cash-out refinance are a loan, not income. You can deduct the interest paid on the loan if you use the money to buy, build or substantially improve your home. Consult a tax professional for more information on which deductions you are entitled to.
How soon can you get a cash-out refinance after buying a home?
You must wait 12 months from the moment you close on the original loan to the moment you close on a conventional or FHA cash-out refinance. You must also be on the home’s title for six months prior to qualifying for a cash-out refinance. For a VA cash-out, you must wait at least 210 days after making your first monthly payment.
Which lender offers the best cash-out refinance rates?
Online lenders like Better and Rocket Mortgage and credit unions like Navy Federal tend to offer the lowest cash-out refinance rates compared to brick-and-mortar lenders. However, your actual rate will depend on factors such as your credit score, debt-to-income ratio, loan-to-value and property type, and it can vary by lender.
Is a cash-out refinance a good idea?
A cash-out refinance can be a good idea if you can secure a lower rate than your current mortgage, plan to use the funds for home improvements or want to change the term of your loan while accessing your home equity.
Is it hard to get approved for a cash-out refinance?
It’s not hard if you meet all the lender’s requirements. Having large amounts of equity, a credit score of at least 620 and a low debt load significantly improves your chances of approval.
How Much is the VA funding fee on a cash-out refinance?
You’ll pay a 2.15% funding fee for a first-time use, and 3.3% for any subsequent refinance. Veterans receiving or eligible to receive compensation for a service-related disability, Purple Heart recipients and receiving Dependency and Indemnity Compensation, among other eligibility requirements, are exempt from paying the funding fee. Verify eligibility with your lender.

Methodology
Money reviewed 34 banks, credit unions and online lenders, gathering data on product terms, costs, availability, transparency and customer experience. We scored lenders on a one-to-five scale across five categories: rates and fees (35%), transparency and digital experience (20%), loan options (15%), qualifying requirements (15%) and experience and reputation (15%). Our top picks scored highest when we considered all factors.

Companies that provide sample rates without requiring an application and clearly state loan fees scored higher.
Companies that provided detailed information about cash-out refinancing, the pros, cons and when it makes sense scored higher.
We prioritized lenders who provided multiple loan options.
Lenders who had more flexible loan qualification requirements received higher scores.
We gave lenders higher scores if they ranked higher in third-party customer satisfaction surveys.

Summary of Money’s 8 best cash-out refinance lenders of November 2026

Better: Best Overall
Rocket: Best for Fast Closing Times
Veterans United: Best for VA Cash-Out Refinancing
SoFi: Best Online Cash-Out Refinance Lender
Carrington: Best for Self-Employed Borrowers
New American Funding: Best for Customer Service
AmeriSave: Best for Low-Credit Borrowers
Citibank: Best National Bank

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5 Best No-Appraisal Home Equity Lenders of 2026
10 Best Home Equity Loans of 2026
6 Best Mortgage Refinance Companies of 2026