Cash-Out Refinance Rates Today 2026: What Homeowners Need to Know

If you’re thinking about a cash-out refinance in 2026, understanding today’s refinance rates can help you decide whether now is the right time to tap into your home equity. A cash-out refinance allows you to replace your existing mortgage with a new, larger loan and receive the difference in cash—which can be used for home improvements, debt consolidation, or other financial goals.

In 2026, mortgage rates remain elevated compared to the historically low levels seen earlier in the decade, but competitive pricing and lender competition mean refinancing may still make sense for many homeowners. Below, we break down current cash-out refinance rates, how they work, and tips for securing the best deal today.

What Are Cash-Out Refinance Rates?

Cash-out refinance rates are the interest rates offered by lenders when you refinance your mortgage and borrow more than your remaining loan balance, receiving the difference in cash. Because cash-out loans reduce your equity and may involve more risk for lenders, these rates are typically slightly higher than standard refinance or rate-and-term refinance rates. :contentReference[oaicite:0]{index=0}

For example, if the average refinance rate for a traditional mortgage is around 6.5%, cash-out refinance rates might range from approximately 6.5% to 6.75% depending on your profile and the lender. :contentReference[oaicite:1]{index=1}

Today’s Mortgage Refinance Rate Landscape

As of early 2026, national mortgage refinance rates provide context for cash-out offers:

• 30-year fixed refinance rates around ~6.5–6.56% on a standard refinance. :contentReference[oaicite:2]{index=2}
• 15-year fixed refinance rates near ~5.9%. :contentReference[oaicite:3]{index=3}
• Variable and adjustable refinance products averaging 6.0–6.4%. :contentReference[oaicite:4]{index=4}

Cash-out refinance rates are often a fraction of a percent higher than these averages, reflecting the added risk and equity withdrawal. :contentReference[oaicite:5]{index=5}

Average Cash-Out Refinance Rates in 2026

Using recent industry data, here’s a snapshot of lenders offering competitive cash-out refinance rates:

• Navy Federal Credit Union – ~6.01% average. :contentReference[oaicite:6]{index=6}
• American Financing – ~6.06%. :contentReference[oaicite:7]{index=7}
• The Federal Savings Bank – ~6.30%. :contentReference[oaicite:8]{index=8}
• PennyMac – ~6.34%. :contentReference[oaicite:9]{index=9}
• Rocket Mortgage – ~6.56%. :contentReference[oaicite:10]{index=10}
• Wells Fargo – ~6.82%. :contentReference[oaicite:11]{index=11}
• Chase Bank – ~6.88%. :contentReference[oaicite:12]{index=12}

This range reflects average cash-out refinance pricing among major lenders; actual offers depend on credit score, loan size, loan-to-value (LTV), and loan type. :contentReference[oaicite:13]{index=13}

How Cash-Out Refinancing Works in 2026

Here’s a simple breakdown:

1. You apply for a refinance loan larger than your existing mortgage balance.
2. The lender pays off your old mortgage and gives you the difference in cash.
3. The new loan’s interest rate reflects current market conditions and your credit profile.

Most lenders require that you maintain a certain level of equity in your home after the refinance—often around 75–80% of the home’s value. :contentReference[oaicite:14]{index=14}

Factors That Affect Cash-Out Refinance Rates

Your personal cash-out refinance rate will depend on:

• Credit score — Higher scores unlock lower rates. :contentReference[oaicite:15]{index=15}
• LTV ratio — Lower leverage often equals better pricing. :contentReference[oaicite:16]{index=16}
• Loan type and term — 30-year fixed vs adjustable. :contentReference[oaicite:17]{index=17}
• Property type — Primary residences typically get better rates. :contentReference[oaicite:18]{index=18}
• Market interest rates — Broader economic conditions influence pricing. :contentReference[oaicite:19]{index=19}

Because lenders price cash-out refinance loans based on risk and market conditions, two borrowers with similar credit but different equity levels could receive noticeably different rates. :contentReference[oaicite:20]{index=20}

Cash-Out Refinance vs Rate-and-Term Refinance

A cash-out refinance differs from a rate-and-term refinance in that it increases your loan balance to take out equity. As a result:

• Cash-out rates are generally higher than rate-and-term refinance rates. :contentReference[oaicite:21]{index=21}
• Cash-out can increase your monthly payment if the new loan balance is significantly higher. :contentReference[oaicite:22]{index=22}
• Rate-and-term loans focus on lowering your interest rate or changing the term. :contentReference[oaicite:23]{index=23}

For homeowners primarily seeking lower payments or shorter terms without taking cash, rate-and-term refinance may be more cost-effective. :contentReference[oaicite:24]{index=24}

When It Makes Sense to Consider a Cash-Out Refinance

Cash-out refinancing can be beneficial if you:

• Have significant home equity to tap.
• Need funds for higher-return uses (e.g., investments, renovations).
• Can secure a comparable interest rate. :contentReference[oaicite:25]{index=25}

Before refinancing, calculate your break-even point—how long it will take for rate savings or financial gains to outweigh closing costs. :contentReference[oaicite:26]{index=26}

Tips for Securing the Best Cash-Out Refinance Rate Today

• Compare multiple lenders for customized quotes.
• Improve your credit score before applying. :contentReference[oaicite:27]{index=27}
• Maintain lower LTV by paying down your current mortgage.
• Consider paying points to lower your interest rate. :contentReference[oaicite:28]{index=28}
• Work with a mortgage broker to access competitive lender networks.

Conclusion

Today’s cash-out refinance rates in 2026 hover around the mid-6% range when compared to standard refinance rates, with top lenders offering competitive pricing depending on borrower qualifications. :contentReference[oaicite:29]{index=29}

If you’re considering accessing your home equity or improving your financial situation, comparing cash-out refinance quotes from multiple lenders and understanding how market conditions impact your rate can help you make the best decision.