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Best Cash-Out Refinance Lenders

By Wirly Editorial Team | Updated March 29, 2026 | AI-assisted, human-reviewed

Best Cash-Out Refinance Lenders: What You Need to Know

A cash-out refinance lets you replace your current mortgage with a new, larger loan. The difference between the two amounts is paid to you in cash. For example, if your home is worth $300,000 and you owe $180,000, you may be able to borrow up to $240,000 (80% of the home’s value) and walk away with $60,000 in cash. Many homeowners use this money to pay off high-interest debt, fund home improvements, or cover major expenses.

How a Cash-Out Refinance Works

When you apply for a cash-out refinance, a lender evaluates your home’s current value, your remaining mortgage balance, and your financial profile. If approved, your old mortgage is paid off and replaced with the new loan. You receive the remaining funds at closing, minus any fees.

Most lenders allow you to borrow up to 80% of your home’s appraised value on a conventional loan. VA loans are an exception – eligible veterans may be able to borrow up to 100% of their home’s value through certain VA cash-out programs, according to the U.S. Department of Veterans Affairs.

Who Qualifies for a Cash-Out Refinance

Lender requirements vary, but here are the typical standards you can expect across conventional, FHA, and VA loan programs:

  • Credit score: Most lenders require a minimum score of 620 for conventional loans. FHA cash-out refinances may accept scores as low as 580. VA loans also tend to be more flexible on credit.
  • Home equity: You generally need at least 20% equity remaining after the cash-out. This means you can only borrow up to 80% of your home’s value on most loans.
  • Debt-to-income ratio (DTI): Lenders typically prefer a DTI below 43%, though some programs allow higher ratios with compensating factors.
  • Loan seasoning: Many lenders require you to have owned your home for at least 12 months before doing a cash-out refinance.
  • Income verification: You will need to document stable income through pay stubs, tax returns, or other records.

Comparing Lenders for Cash-Out Refinancing

Different lenders are stronger in different areas. Here is a quick look at what some of the top options are known for:

  • Rocket Mortgage – A fully online experience with a minimum credit score of 580. Offers conventional, FHA, VA, and jumbo loans.
  • Better – Known for low fees and a digital-first process. Minimum credit score of 620 for conventional and FHA loans.
  • LendingTree – A marketplace that lets you compare multiple lender offers at once. Accepts credit scores as low as 580 and covers nearly all loan types including USDA.
  • SoFi – A good fit for borrowers seeking high-balance loans. Minimum credit score of 600 for conventional and jumbo options.
  • Navy Federal Credit Union – Best for active military and veterans. Accepts scores from 580 and specializes in VA loans.
  • Chase and Wells Fargo – Strong choices if you prefer working with a large bank in person. Both require a minimum credit score of 620.
  • loanDepot and PennyMac – May offer perks for returning customers, including reduced fees on repeat transactions.
  • Guaranteed Rate – Offers a wide selection of loan types including USDA and VA, with a minimum score of 620.

Pros and Cons of a Cash-Out Refinance

  • Pro: Access to a large lump sum of money at relatively low interest rates compared to personal loans or credit cards
  • Pro: Mortgage interest may be tax-deductible if funds are used for home improvements (consult a tax advisor)
  • Pro: Potential to lower your existing interest rate while accessing equity at the same time
  • Con: You are borrowing against your home, which means foreclosure risk if you cannot repay
  • Con: Closing costs typically range from 2% to 5% of the loan amount, according to the Consumer Financial Protection Bureau
  • Con: A larger loan balance means higher monthly payments or a longer repayment period
  • Con: You reduce the equity you have built in your home

Tips for Getting the Best Cash-Out Refinance Deal

  1. Shop at least three lenders. Rates and fees vary widely. Getting multiple quotes is one of the most effective ways to save money.
  2. Check your credit before applying. A higher score can unlock better rates. Review your credit report for errors at AnnualCreditReport.com.
  3. Know your home’s value. Use recent sales of comparable homes in your area to estimate your equity before applying.
  4. Only borrow what you need. Taking out more cash than necessary increases your loan balance and long-term interest costs.
  5. Watch for prepayment penalties. Some lenders charge fees if you pay off the loan early. Ask about this upfront.

Estimate Your Options with Wirly’s Calculator

Before you contact any lender, it helps to understand how much equity you could access and what your new payment might look like. Use the Wirly cash-out refinance calculator to run the numbers based on your home’s value, current loan balance, and credit profile. It is a free, no-commitment tool designed to help you make a more informed decision.

Educational disclaimer: This content is for informational purposes only and does not constitute financial or legal advice. Mortgage products, rates, and requirements change frequently. Consult a licensed financial professional before making decisions about your home loan. Wirly is not a lender or mortgage broker.

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This guide is for educational purposes only. Consult a licensed mortgage professional for personalized advice. Wirly is not a lender or mortgage broker.