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Andrew Dehan writes about home loans, real estate and personal finance. He's taken the NMLS Loan Originator education classes and passed the MLO SAFE test. Besides Bankrate, his work has been published by Rocket Mortgage, Forbes Advisor and Business Insider. He’s also a poet, musician and nature-lover. He lives in metro Detroit with his wife and children.
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On Thursday, June 11, 2026, the national average 30-year fixed refinance APR is 6.78%, according to Bankrate's latest survey of the nation's largest refinance lenders. Use Bankrate's rate table to compare today's cash-out refinance APRs.
Because cash-out refinances are considered riskier than their rate-and-term counterparts, cash-out refi rates are generally higher than regular refinance rates — specifically, between one-quarter and one-half a percentage point higher. For example, if rate-and-term refi rates are around 6.25%, you can expect a cash-out refinance rate of somewhere around 6.5% to 6.75%.
To get the most competitive rates, it’s best to shop around and obtain quotes from several lenders. This table highlights recent national averages sourced by Bankrate for a conventional 30-year mortgage refinance loan.
Week of
Average APR
04/20/26
6.71%
04/13/26
6.73%
04/06/26
6.76%
03/30/26
6.82%
03/23/26
6.81%
03/16/26
6.72%
03/09/26
6.71%
03/02/26
6.66%
Bankrate’s mortgage rates include national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
“Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.
Like all mortgage rates, cash-out refinance interest rates are affected by both personal and market factors. These include:
Your credit score
Your debt-to-income (DTI) ratio
The lender's policies
Federal Reserve monetary policy
Overall economic conditions
Your credit score and DTI ratio influence your approval chances and loan terms you can qualify for. Market conditions, including Federal Reserve decisions and inflation, impact overall rate trends. For example, when inflation is high, the Fed might raise interest rates to cool down the economy, which in turn results in higher borrowing costs and mortgage rates.
How to get the best cash-out refinance rate
Because you’re taking out a bigger loan with a cash-out refinance, it’s even more important to find the best possible rate. Here’s how:
Review your credit
You won’t get the best interest rate possible if your credit score needs work. Well ahead of applying for a cash-out refinance, check your credit reports and scores. Many lenders allow you to qualify with a score as low as 620, but the best rates go to borrowers with a score of 740 or higher. Here’s more on how to improve your credit for a mortgage, plus bad-credit refinance options.
Take stock of what you already owe
If you have other debt, like a car loan or student loans, these factor into your debt-to-income (DTI) ratio. The lower your DTI — ideally 45% or less — the better your chance of getting a lower rate. To find out yours, use our DTI calculator.
Compare cash-out refinance loan types
Considering the different types of cash-out refinance loans can help identify the best choice for your situation. (And as you explore different loan types, it’s a good idea to compare the lenders that offer them, too.) While eligibility varies by program, the options include:
Conventional cash-out refinance: These loans are open to borrowers with many loan types — for example, if your original loan was an FHA loan, you may still qualify for a conventional cash-out refinance. You may also perform a cash-out refinance on an investment property. However, they tend to have the most stringent financial qualifications.
FHA cash-out refinance: You may use an FHA cash-out refinance even if you started out with a conventional loan or other loan type. However, like all government-backed loans, you can't use one to refinance an investment property. Like FHA purchase loans, these may have more flexible qualifications than a conventional cash-out refinance.
VA cash-out refinance: Similar to VA purchase loans, these are available only to qualifying active-duty service members, veterans and surviving spouses.
Apply and lock in your rate
Once you’ve picked a lender, it’s time to submit an application and authorize a hard credit check. The lender will verify your income, assets and home value. Generally, the process takes 30 to 45 days from application to funding, although the timing depends on the lender and how quickly you can provide necessary documentation.
While there are many valid reasons for a cash-out refinance, you should consider the pros and cons before you commit to one.
Pros
Access to cash: You can turn your equity into a liquid asset to cover home repairs, pay for college or consolidate debt.
Home value increase: If you use a cash-out refinance to renovate your home with a kitchen remodel or an addition, for instance, you could grow your home's value.
Lower interest rates: Mortgages come with lower interest rates when compared to credit cards, personal loans and other forms of debt. You can use a cash-out refinance to pay off this higher-interest debt and improve your credit score by lowering your credit utilization.
Cons
Increased debt load: A cash-out refinance replaces your old mortgage with a new, larger mortgage. This means you’ll likely have a higher monthly payment — unless you refinance to a much lower rate than what you're currently paying.
Closing costs: You’ll have to pay for closing costs on the new loan, just like you did for your original mortgage. Refinancing typically costs between 2% and 6% of the new loan amount. For a $300,000 loan, that translates to $6,000 to $18,000.
Foreclosure risk: Unlike credit cards and personal loans, mortgages are secured debt, using your home as collateral. If you’re unable to make your mortgage payments, your home will eventually be subject to foreclosure.
A cash-out refinance is a type of mortgage refinance that turns a portion of your home’s equity into cash. You’ll swap your current mortgage for a bigger loan, pocketing the difference between the two in a lump sum. You can use these funds for any purpose, whether it’s for a home renovation, college tuition or other expenses.
A limited cash-out refinance is similar to a regular cash-out in that you’ll get a new mortgage with a new interest rate — and potentially a new term. The difference: You’ll only receive a small amount of cash proceeds. For a conventional limited cash-out, that amount is no more than 2% of the new mortgage balance or $2,000, whichever is less. This type of refinance might make sense for a borrower with a lower balance to refinance or a minor expense.
Generally, a cash-out refinance takes anywhere from 30 to 60 days to close. The timeline depends on many factors, including how soon your home is appraised and whether your lender needs to follow up in underwriting for outstanding information. You can receive your funds in as little as three days after closing.
Many lenders allow you to tap up to 80% of your home’s current value in a cash-out refinance. Conventional and FHA cash-out refinances are limited to 80% of your home’s value, but with a VA cash-out refinance, you can get up to 100%. USDA loans don’t allow for cash-out refinancing.
You can use money from a cash-out refinance however you want, but some of the most common uses include:
Home improvement and renovation project
Consolidating high-interest debt
Paying for college tuition or other education costs
Making a down payment on an investment property
A cash-out refinance can be a good move if it helps you achieve a financial goal, like consolidating high-interest debt or funding home improvements. However, you need to secure a competitive interest rate and stay in your home long enough to recoup closing costs. Weigh the long-term costs against the benefits when you’re considering cash-out refinancing.
There’s a certain risk to a cash-out refinance since you’re replacing your existing mortgage with a larger one, meaning you’re increasing your overall debt. If home values decline or your financial situation changes, you could end up owing more than your home’s value or struggle with payments. That’s why it’s best to avoid this type of loan if you’re planning to use the funds on discretionary expenses like travel.
With a regular mortgage, you can typically deduct mortgage interest on your tax return. However, in the case of a cash refinance, that deduction only applies if you use the funds to make home improvements. Consult with a tax professional to determine how a cash refinance can affect your tax bill.
Andrew Dehan writes about home loans, real estate and personal finance. He's taken the NMLS Loan Originator education classes and passed the MLO SAFE test. Besides Bankrate, his work has been published by Rocket Mortgage, Forbes Advisor and Business Insider. He’s also a poet, musician and nature-lover. He lives in metro Detroit with his wife and children.
