The Quick Read: It depends, and no single percentage of your equity answers it. Your cash is the new loan amount minus your payoff, minus any costs paid out of the loan. The new loan is capped by the appraised value and the leverage a lane allows. On the wholesale jumbo lanes Lendmire’s team works with, cash-out leverage sits below purchase leverage, and the largest lanes add a cash cap, subject to lender guidelines and full file review.
The Formula in One Line
Cash to you = new loan amount − payoff of your current mortgage and any required liens − closing costs and prepaids paid from the loan.
Jumbo cash-out estimate
Enter the value, the balance, and the cash wanted; choose the occupancy and the structure; the lanes, the payment, and the reserves follow.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a jumbo cash-out refinance quote.
Illustrative starting assumptions: a $2,000,000 home value in the jumbo range, a $1,000,000 current balance, a principal residence on a thirty-year fixed structure at the current Freddie Mac conforming 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 conforming benchmark, a market reference and not a jumbo cash-out refinance quote; a jumbo loan is priced by the lender at lock. The lanes shown are the wholesale cash-out lanes behind this page as of the snapshot date; the calculator reads each lane’s leverage, loan maximum by occupancy, cash-in-hand cap, and reserves as the lane table states them, and a Lendmire loan officer confirms the lane on the file. The cash available is the loan the lane allows less the balances paid off, before closing costs, which are not included; on most lanes a jumbo cash-out begins one dollar above the conforming limit for the county, and two lanes start at a stated dollar floor instead. The HELOC line is the line 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.
Every term in that line can move. The appraisal sets the value. The lender’s leverage limit sets the ceiling on the new loan. Your payoff and costs come out first. What’s left is the check.
Paper equity and cash received are two different numbers. Equity is value minus what you owe. Cash is what survives the leverage cap, the payoff and the costs, so it is always smaller than the equity on paper.
What Makes a Refinance “Jumbo”?
A loan is jumbo when it exceeds the conforming limit, the ceiling on loans Fannie Mae and Freddie Mac can buy. FHFA sets a baseline limit and a higher ceiling for high-cost counties, and resets both every year. The same loan amount can be conforming in an expensive county and jumbo in a baseline county. Check your own county’s figure on FHFA’s lookup rather than relying on a number you saw somewhere else.
Jumbo status is a loan-size label. It doesn’t mean the loan is non-QM, and it doesn’t excuse the lender from confirming you can repay.
For the program itself, Lendmire’s jumbo cash-out refinance program page lays out the structures available through the wholesale lenders it works with.
How Is the Maximum New Loan Set?
The maximum new loan is the appraised value times the leverage the lane allows. Jumbo has no federal leverage cap. The lender or investor buying the loan sets it, which is why two lenders can give two different answers on the same house.
Across the wholesale jumbo lanes Lendmire places files with, the headline lane reaches a 90% LTV ceiling at a 660 decision score. Separately, several lanes allow a combined loan-to-value (CLTV) of up to 89.99%, which counts any second lien alongside the first loan. The remaining lanes stop at 80%. Those are the ceilings, and they are mostly purchase figures. Cash-out runs at lower leverage than purchase, and primary, second-home and investment occupancy each carry their own lane-specific leverage. Every figure here varies by lender and program, and guidelines, property type, leverage and credit profile all apply.
Loans reach $5,000,000 on the largest lanes. The ratio ceiling is 50% on the fixed lanes, 45% on the adjustable lanes and 43% on the interest-only lanes. Every figure is subject to lender guidelines, and none of it is a commitment to lend.
The CFPB’s home equity guide notes that lenders typically want you to keep 10% to 20% of your home’s value as equity with a cash-out refinance. That’s a general range, not a jumbo rule. But it explains why you can’t take all your equity. The cap applies to total liens against the home, not just the cash you walk away with.
Five Tests That Set Your Number
Your cash is the lowest result of several tests. Whichever binds first wins.
1. Leverage test. Appraised value times the lane’s cash-out leverage, minus everything already owed.
2. Cash cap test. The largest lanes limit how much cash can come out, even when leverage would allow more.
3. Repayment test. A bigger loan means a bigger payment. If the new payment pushes your ratio past the lane’s ceiling, the loan shrinks.
4. Reserves test. Reserves are counted in months of the full payment and rise with the loan amount. Larger loans need more cash left in the bank.
5. Appraisal test. A lower value shrinks the maximum loan, and your cash falls with it, dollar for dollar.
Above a lane’s threshold amount, two appraisals are required. If they differ, the lower figure generally governs. That’s a real risk on larger loans, so plan around the conservative value.
Why Your Check Is Smaller Than Your Equity
Picture a homeowner with a lot of equity on paper. The check comes in well below it for four reasons.
Leverage leaves a cushion. Cash-out leverage stops short of full value, so a slice of equity is off the table by design.
Payoff comes first. Your existing first mortgage is retired from the new loan. So is any second lien the lender requires you to close. Paying off a second mortgage can change how the loan is classified, and it always reduces your cash.
Costs come out of proceeds. Closing costs and prepaids paid from the loan cut your net cash dollar for dollar. Because a cash-out refinance replaces the whole first mortgage, costs are tied to the entire new loan, not just the cash you take.
The appraisal can disappoint. Run it as a sensitivity check. Suppose the home appraises at 5% below your expectation. The maximum loan drops by that percentage times the lane’s leverage, and since your payoff stays the same, the entire reduction comes out of your cash. A small value miss can erase a large share of a modest cash-out.
| Change | Effect on your cash |
|---|---|
| Appraisal comes in lower | Cash falls dollar for dollar |
| Closing costs rolled into the loan | Cash falls dollar for dollar |
| Second lien must be paid off | Cash falls by the payoff |
| Cash cap applies | Cash stops at the cap |
Does Occupancy or Property Type Change the Answer?
Yes. Occupancy decides leverage. Primary residences get the most room, while second homes and investment occupancy sit at lane-specific leverage, generally lower. Non-warrantable condominiums are accepted on two lanes, with their own limits. If the home you’re refinancing is your primary residence, you’re in the best position.
Seasoning and How Long You’ve Owned It
Many programs look at how long the current mortgage has been in place and how long you’ve been on title. Fannie Mae’s conforming rules, laid out in its cash-out refinance guide, are a useful benchmark because lenders often borrow similar clocks. Jumbo lanes may differ, so confirm yours at the start.
If you paid cash for the home, a “delayed financing” exception exists on conforming loans. The cash returned is generally tied to your documented purchase cost, not the appraised value. Ask whether the lane you’re considering has a similar path.
Jumbo Cash-Out, Conforming Cash-Out or a HELOC?
The CFPB notes a cash-out refinance may cost more or less than a HELOC, depending on terms. The structural difference is what gets repriced.
| Factor | Jumbo cash-out | Conforming cash-out | HELOC or second |
|---|---|---|---|
| First mortgage | Replaced | Replaced | Left in place |
| Loan size | Above county limit | At or below limit | Separate, added loan |
| Leverage rules | Set by lender | Set by agency matrix | Set by lender |
| Best when | Balance exceeds limit | Balance fits the limit | Current first is worth keeping |
Here’s the flip point. If your current first mortgage is one you’d hate to give up, a separate second loan may deliver cash without touching it. If your balance is above the limit anyway and a larger new loan makes sense, a jumbo cash-out replaces everything in one step. If your new balance would fall within the county limit, compare conforming too.
What a Bigger Loan Costs You
A cash-out refinance can lengthen your payoff timeline and raise your payment, since you’re replacing your mortgage with a larger one. Your ratio has to absorb that. Interest-only structures hold the payment down, but they leave the balance where it is.
Spend the proceeds on purpose. Consolidating card debt into a mortgage clears the balances, but it doesn’t remove the habit, so new card spending can rebuild the debt you just paid off. The CFPB has a report on borrowers who paid down debt with cash-out proceeds and how their credit scores changed.
The Cancel Window
On a refinance of your principal home, you have until midnight of the third business day to cancel. The CFPB confirms that Saturdays count and Sundays and legal holidays don’t. Funds are generally disbursed after that window, so don’t schedule a payment that depends on the money landing the moment you sign. The right doesn’t apply to every property type, and if you cancel, you still owe your original loan.
Key Terms Defined
Cash-out refinance: A new, larger mortgage that replaces your current one and pays you the difference.
LTV: Loan-to-value, the loan balance divided by the appraised value.
CLTV: Combined loan-to-value, which counts every loan secured by the home.
Cash cap: A lender limit on the dollars that can come out, regardless of leverage.
Seasoning: How long a loan or ownership has been in place before a refinance qualifies.
Reserves: Liquid savings, measured in months of the full payment, that you hold after closing.
Pre-Application Checklist
- Pull your current payoff, including any second lien.
- Decide what the money is for before you size the loan.
- Look up your county’s conforming limit.
- Gather statements for the reserves you’d hold after closing.
- Plan for the lower of two appraisals if your loan is large.
- Estimate your new payment against the ratio ceiling for the structure you want.
Frequently Asked Questions
Can I take out all of my equity?
No. Lenders require you to keep a cushion, and the CFPB’s guide cites 10% to 20% of value as typical. The cap covers all liens combined. On the largest jumbo lanes, a cash cap can stop proceeds short of what leverage alone would allow.
Does a jumbo cash-out refinance need a bigger down payment or credit score than a purchase?
There’s no down payment on a refinance, but cash-out leverage runs lower than purchase leverage. The headline lane starts at a 660 decision score, and other lanes may set their own floors. Reserves, measured in months of the full payment, rise with the loan amount, and the ratio ceiling for your chosen structure still applies.
What if the appraisal comes in low?
Your cash drops dollar for dollar. The maximum loan is value times leverage, and your payoff doesn’t change. Some larger loans require two appraisals, and the lower value generally governs.
Does jumbo mean the loan is non-QM?
No. Jumbo describes loan size against the county limit. Federal ability-to-repay rules apply either way, and the Federal Register’s QM rule confirms non-QM loans still require a good-faith repayment determination.
Is the conforming limit the same everywhere?
No. It’s a baseline that rises in high-cost counties and resets each year, so look up your county on FHFA’s page.
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 — NMLS# 2371349 — is a mortgage broker that arranges FHA, VA, conventional and jumbo home purchase and refinance financing in 16 states through wholesale lenders. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see jumbo 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. FHFA 2026 Conforming Loan Limit Announcement
2. CFPB, Using Home Equity to Meet Financial Needs
3. Fannie Mae Selling Guide: Cash-Out Refinance Transactions
4. CFPB Ask: Other loans similar to a HELOC
5. CFPB: CFPB Report Finds Cash Out Mortgage Refinance Borrowers Improve Credit Scores
6. CFPB: How Long Do I Have to Rescind When Does the Right of Rescission Start
7. Federal Register: General QM Final Rule
This article is part of Lendmire’s jumbo cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Qualify and Apply for a Jumbo Cash-Out Refinance Owning the Home Under a Year · How Lenders Underwrite a Jumbo Cash-Out Refinance on a Luxury Home in a Declining Market · How Much a Jumbo Cash-Out Lends on a Trust-Held Home
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.