The Quick Read: A high-balance cash-out refinance lends up to 80% of your home’s appraised value on a one-unit primary residence, and up to 75% on a two- to four-unit primary residence, capped by your county’s loan limit. The “high-balance” label raises the dollar ceiling in designated high-cost counties. It does not raise the percentage of value you can borrow. That 80% covers the whole new loan, so your old mortgage payoff and any financed closing costs come out before you see a dollar of cash.
What “High-Balance” Actually Means
A high-balance loan is a conforming loan that exceeds the national baseline limit but stays within the higher limit for a high-cost county. Fannie Mae’s Selling Guide says high-balance loans are subject to the high-cost area loan limits. The FHFA sets those limits each year. Under the formula in the FHFA conforming loan limit addendum, the local limit rises where 115 percent of the local median home value exceeds the baseline, but it cannot be more than 50 percent above the baseline.
Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the agency cap on a one-unit principal residence, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Where the county limit equals the baseline, there is no high-balance band at all. Above the county limit, the loan is a jumbo, which sits outside this framework.
Here is the misconception to clear up first. Many homeowners assume high-balance lets them borrow a larger share of their home’s value. It doesn’t. The percentage cap comes from occupancy and unit count. The loan-size label only decides which dollar amounts are allowed and how the file is underwritten.
Key Terms Defined
- LTV (loan-to-value): The new loan amount divided by the home’s appraised value.
- CLTV / HCLTV: The same ratio counting other liens too. HCLTV also counts the full credit line on a HELOC, drawn or not.
- Cash-out refinance: A new first mortgage that pays off the old one and returns real cash to you.
- Limited cash-out (rate-and-term) refinance: A refinance that pays off the old loan and costs, with only incidental cash back.
- Loan limit: The maximum dollar loan the agencies will buy in your county.
The Sizing Formula, Step by Step
Three tests set your ceiling, and the lower one wins.
1. Leverage test: Maximum new loan = 80% (one unit) or 75% (two to four units) × appraised value.
2. Dollar test: The new loan cannot exceed the county loan limit.
3. Cash to you: New loan, minus the payoff of your first mortgage, minus any other liens being paid off, minus closing costs and prepaids you finance.
Work it in percentages of value. Say your home appraises at 100% of value and your payoff is 55%. At an 80% cap, the new loan can reach 80%. Financed costs of 2% leave 23% of value in cash. Pay those costs from savings instead, and the cash rises to 25%, though you’ve spent your own money to get there.
Equity is not cash. Many homeowners see “I own 45% of my home” and expect to walk away with it. The cap applies to the whole new loan, so only the space between the payoff and the cap is available.
When the Loan Limit Binds Before LTV Does
At lower home values, the 80% cap controls. At higher values, the county limit controls. This is arithmetic, not a sourced figure: for a one-unit primary residence in a county at the top contiguous-state limit, 80% of value reaches that limit at a value of about $1.56 million. Above that value, the dollar ceiling binds first, and the borrower effectively gets less than 80% of value.
Fannie Mae’s loan limits page lists the current baseline, the high-cost ceiling, and the multi-unit and non-contiguous-state figures. Look up your county there rather than relying on a national number. The baseline is not the limit everywhere. Many counties sit well above it.
| Home value vs. county limit | What controls the loan | Effect on cash |
|---|---|---|
| Lower value, limit not reached | 80% LTV cap | Cash = cap minus payoff and costs |
| Value near the crossover | Both land together | Full cap available |
| Higher value, limit reached | County loan limit | Less than 80% of value available |
How the Loan Is Underwritten
Here is how a high-balance cash-out file moves, from classification to disclosures.
1. Classification. The loan is a cash-out transaction if you take more than incidental cash. Fannie Mae’s cash-out refinance rules cover eligibility, ownership, acceptable uses and the delayed financing exception.
2. Automated underwriting. High-balance loans must be conventional first-lien mortgages that meet the Eligibility Matrix ratios and run through Fannie Mae’s Desktop Underwriter. Manual underwriting is not an option on this path. On the wholesale conventional programs, the automated finding governs most files, with a 620 minimum decision score and a total ratio ceiling of 50%, subject to lender guidelines.
3. Appraisal. Value drives the whole calculation. A lower appraisal shrinks the cap in direct proportion.
4. Seasoning. The first mortgage being paid off must be at least 12 months old, measured note date to note date, and a borrower must have been on title for 6 months. Delayed financing, inheritance and legal-award exceptions exist. Equity does not shorten these clocks.
5. Disclosures. You’ll receive a Loan Estimate and a Closing Disclosure. Compare the closing costs and cash to close on the two, and see how each one separates costs you finance from costs you pay.
The programs page for Lendmire’s cash-out refinance programs lays out the conventional options a broker can place for a primary residence.
Where the General Rule Breaks
These are the edge cases that change the number.
Two- to four-unit homes. The cap drops from 80% to 75% for a primary residence with two to four units. Per the Fannie Mae Eligibility Matrix, this applies to high-balance and standard loans alike. Second homes and investment properties also carry a 75% cap on conventional cash-out. Occupancy sets the leverage. It does not make a cash-out ineligible.
Limited cash-out is not cash-out. A rate-and-term refinance reaches 95% LTV on a one-unit primary residence, but it returns only incidental cash. Fannie Mae allows the lesser of 2% of the new loan amount or $2,000. Take real cash, and the loan moves into the 80% table, which can cut leverage without the borrower noticing. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The no-mortgage-insurance lane. One wholesale lane reaches 89.99% LTV on a cash-out with no mortgage insurance. It requires a 680 score, a 50% ratio, a thirty-year fixed rate, a primary residence and a conforming balance, plus its own six months of seasoning. It is the exception to the usual mortgage insurance rule, and because it is built on a conforming balance, it does not apply across the full high-balance band. Availability is subject to lender guidelines.
Texas homestead. A cash-out on a Texas homestead (a Section 50(a)(6) loan) is capped at 80% of the home’s value by the state constitution. The no-mortgage-insurance lane is not written there.
Delayed financing. Buy a home with cash and refinance soon after, and the new loan is limited to your documented initial investment plus financed closing costs, within the leverage cap. It still counts as cash-out and carries cash-out pricing.
RefiNow and high LTV refinance. Per the Eligibility Matrix, high-balance loans are not eligible for RefiNow, and acquisition of high LTV refinance loans is suspended.
Manufactured housing. Cash-out caps on manufactured housing are lower. The agency product matrix lists 65% on a principal residence, so check the current matrix.
Free-and-clear homes. A home with no mortgage is still a cash-out when you borrow against it.
Mortgage Insurance and the 80% Cap
Mortgage insurance is required above 80% LTV on the agency path, except in the wholesale no-mortgage-insurance lane described above. Because the standard cash-out cap is already 80%, mortgage insurance rarely comes into play on a typical high-balance cash-out. Where it does apply, the borrower may request cancellation at 80% of the original value with good payment history, no subordinate liens and no decline in value. The servicer must terminate it automatically at 78%. Lendmire’s conventional program sheet lists typical annual premiums of 0.58% to 1.86% of the balance. Premiums vary by borrower and file. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What the Decision Looks Like in Practice
Run three questions in order.
1. Does the loan I need fit under my county’s limit? If payoff plus the cash you want plus costs exceeds the limit, you have three choices: take less cash, bring money to closing, or step into jumbo territory. Jumbo programs use different rules, including a 660 decision score and leverage to 90% on some lanes.
2. Can I leave my current loan alone? A cash-out resets the whole mortgage into a larger one. The CFPB’s home equity brochure notes that closing costs are generally higher on a cash-out refinance. Monthly impact depends on the new balance, term and pricing. A different tool, such as a separate second lien, may suit a borrower with a loan they want to keep, though the combined ratios still count.
3. Do I need the cash, or the lower leverage? If you only need to pay off a second lien or cover costs, a limited cash-out structure reaches higher leverage.
A quick scenario. Picture a homeowner in a high-cost county with a one-unit primary residence, a payoff at about 60% of value, and a wish for 25% of value in cash. Those two figures alone add up to 85% of value, already above the 80% cap on the new loan, before any closing costs are counted. The homeowner trims the cash target, brings money to closing, or reconsiders. Nothing about the high-balance label changes that arithmetic.
Common Mistakes
- Assuming “high-balance” means a higher percentage of value.
- Treating 80% as the share of value you receive in cash.
- Forgetting that the baseline limit is not the county limit.
- Counting a recent purchase as seasoning. Title time and the age of the loan being paid off are separate tests.
- Assuming the cap guarantees a loan. The full file must still meet underwriting and lender requirements.
Frequently Asked Questions
Is the LTV on a high-balance cash-out lower than on a standard cash-out?
No. Confirm the current Eligibility Matrix footnotes for your file, since the matrix is revised periodically.
Can I take 80% of my home’s value in cash?
No. The 80% limits the entire new loan. Your old mortgage payoff, any liens you pay off, and financed closing costs all come out first. Only what’s left is cash to you.
What happens if the 80% loan would exceed my county’s limit?
The county limit controls, and your cash shrinks. You can take less cash, pay costs from savings so the financed amount stays lower, or look at jumbo lanes with different rules. Lenders review each of these structures subject to their guidelines.
Does a limited cash-out refinance on a high-balance loan return meaningful cash?
Rarely. The tradeoff is much higher leverage, up to 95% on a one-unit primary residence.
How long must I own the home before a cash-out?
A borrower generally needs 6 months on title, and the first mortgage being paid off must be at least 12 months old. Exceptions exist for delayed financing, inheritance and legal awards. All terms are subject to lender guidelines and full file review.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging FHA, VA, conventional and jumbo purchase and refinance loans through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see conventional loan programs.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae Selling Guide B2-1.5-01, Loan Limits
2. FHFA Conforming Loan Limit Addendum
4. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
5. Fannie Mae Eligibility Matrix
6. CFPB’s home equity brochure
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much Equity to Keep to Skip PMI on a Cash-Out Refinance · How to Borrow Again With a Conventional Cash-Out Refinance · Can a High-Balance Owner Do a Cash-Out Refinance at Max LTV?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.