The Quick Read: Jumbo cash-out lending exists, but no single bank list answers the question, because each lender sets its own limits. Large banks, private banks, regional banks, credit unions and non-bank lenders all write some version of it. What you can borrow depends on your appraisal, credit, reserves and the size of the loan. A mortgage broker shops several wholesale lenders and matches your file to the program that fits.
Key Takeaways
- A jumbo loan is any loan above the county’s conforming limit. Each lender sets its own rules above that line.
- Cash-out loans carry lower leverage than purchase loans. The largest loans often add a cash cap.
- Reserves and income documentation are two of the items a lender reviews alongside your equity.
- Refinancing before you sell is one route. Selling first, a HELOC and a bridge loan are others.
- Which program is best depends on your situation, not on a ranking.
What Is a Jumbo Cash-Out Refinance?
A jumbo cash-out refinance replaces your current first mortgage with a larger new one and hands you the difference in cash. The new loan is above the county’s conforming limit, so it sits outside the Fannie Mae and Freddie Mac framework.
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.
The Federal Housing Finance Agency sets that limit each year and publishes a county-by-county list in its conforming loan limit announcement. Lendmire never quotes the figure, because it changes and varies by county. Look up your county on the FHFA page. The next year’s limits are usually announced in late fall. Lender-advertised early limits are not official.
A cash-out refinance is not a second mortgage. Your old loan is paid off in full. A home equity loan or HELOC leaves it in place and adds a second payment on top.
Lendmire’s jumbo cash-out refinance program page lays out the structures in more detail. Lendmire is a mortgage broker, not a lender. It arranges these loans through wholesale lenders in the 16 states where it is licensed for consumer lending.
Which Banks Write This Loan?
Lender categories matter more than brand names. Large depository banks, private banks, regional banks, credit unions and non-bank lenders all compete in jumbo. HousingWire notes the jumbo market is primarily dominated by banks, and each one runs its own guidelines.
Lendmire does not rank or recommend individual banks. No verified list says which lender will do your exact deal, and the answer changes by loan size and property type. The lenders that write your loan depend on your credit, equity, reserves, income documentation and loan amount.
A few patterns hold up across the wholesale programs Lendmire places files with:
- Some lenders write cash-out only for existing customers or at modest loan sizes.
- Some stop at a certain loan amount, or cap how much cash you can take on the largest loans.
- Some require a higher credit floor than their purchase program does.
- Some accept non-warrantable condominiums. Many do not.
A broker’s value is matching. One application goes to a network of wholesale lenders, and the file is placed with whichever program fits. You skip the cycle of applying bank by bank, only to learn at underwriting that your loan size or property type falls outside a bank’s box.
How Is the Loan Underwritten, Step by Step?
Underwriting is the lender’s review of whether the loan is safe to make. For a jumbo cash-out, it follows a set order.
1. The appraisal sets the ceiling. The lender orders a value opinion. Above a lane’s threshold amount, many lanes require two appraisals. Everything else flows from that value.
2. The lender applies its cash-out leverage cap. Leverage is the new loan divided by the home’s value. Cash-out is capped at lower leverage than a purchase, and the largest lanes add a cash cap on top.
3. The payoff comes out first. Your existing mortgage balance and closing costs are subtracted. What remains is your cash.
4. Credit is checked against the lane’s floor. The headline lane Lendmire works with starts at a 660 decision score. Other lanes and lenders may set higher floors. Subject to lender guidelines, a stronger score can support better terms.
5. Your debt-to-income ratio is tested. This ratio compares your monthly debts, including the new mortgage payment, to your monthly income. On the fixed lanes the ceiling is 50%. It is 45% on the adjustable lanes and 43% on the interest-only lanes.
6. Reserves are counted. Reserves are liquid funds you hold after closing, measured in months of your full housing payment. They rise with the loan amount. On many lanes, the cash you pull out in the refinance does not count toward them. Confirm that with your loan officer before you plan around it.
7. The lender checks you can repay. Federal rules require a reasonable, good-faith determination of that, covered below.
For a downsizer with large equity, steps 5 and 6 are the ones to prepare for. Retirees and fixed-income borrowers may have plenty of assets but modest documented income, and that is where a broker’s lender matching earns its place.
What Structures Are Available?
The wholesale jumbo lanes come in three structures:
- Fixed: the payment stays level for the term.
- Adjustable: the payment can change after an initial period.
- Interest-only: early payments cover interest only, so the balance does not fall at first.
Leverage tops out at a 90% loan-to-value (LTV) ceiling on the headline lane. Several lanes reach 89.99% combined loan-to-value (CLTV), which counts all loans against the home. The rest stop at 80%. Those are the outer limits for the program, and cash-out is capped at lower leverage than a purchase, so your own cash-out limit will sit below them. Loans reach $5,000,000 on the largest lanes, all subject to lender guidelines and full file review.
Occupancy matters. Primary residence, second home and investment property each carry lane-specific leverage. A second home or rental gets less leverage than the home you live in. This article covers your primary residence.
How Much Cash Can You Actually Take?
The math is simple, and the appraisal drives all of it.
Maximum new loan = appraised value × the lane’s cash-out leverage cap.
Your cash = maximum new loan − payoff − closing costs.
Picture a homeowner with a large, long-held home. The mortgage balance is about 35% of the value, so most of the home is equity. If the lender’s cap lets the new loan reach a high share of value, the gap between the new loan and the payoff is large. A cash cap on the largest lanes may still trim it.
Now run a low appraisal. Say the value comes in 5% below what you expected. The loan ceiling drops by 5%. Your payoff does not move. Closing costs barely move. The cash falls by more than 5% because the same payoff comes out of a smaller ceiling. A modest appraisal miss hits the cash line hard.
Closing costs on a large loan are a real percentage of the amount. Financing them, deducting them from proceeds or paying them from savings are the usual routes. Your Loan Estimate shows the actual figure. Any prepayment charge on your old or new loan comes out before you see a dollar.
Cash-out is not guaranteed cash. It is the leftover.
Why Refinance Before Downsizing?
Downsizers usually reach for one of four tools. Each one fits a different situation.
| Route | How it works | Fits best when |
|---|---|---|
| Cash-out refinance | Replaces your first mortgage; you take cash | You want cash before selling and can carry two payments |
| Sell first, then buy | Sale proceeds fund the next home | You can live in a rental or move twice |
| HELOC or home equity loan | Adds a second lien; keeps your first mortgage | Your current loan is worth keeping and you need less cash |
| Bridge loan | Short-term loan against the old home | You need a down payment before the sale closes |
The common reason to refinance first is a down payment. You tap equity in the home you are leaving, buy the next one with fewer contingencies, then sell. The tradeoff is overlap. You carry the new, larger mortgage and the next home’s payment at the same time until the old home sells.
Sequence matters. Buying the next home with the cash-out proceeds is a purchase, a separate transaction with its own approval. Refinancing and then selling soon after also means you paid refinance closing costs on a loan you held briefly. Ask your lender about any prepayment terms.
Refinancing restarts your loan term and gives up your current payment structure. If your existing loan has favorable terms, a HELOC or selling first may cost less overall. Bridge loans and tax planning are separate topics. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Where Does the General Rule Break?
Second homes and rentals. Occupancy changes leverage, and rescission rights typically attach to the home you live in. Lendmire’s lanes cap second-home and investment leverage differently than primary.
Low appraisals. If the value falls short, a lender may cut the loan, lower the cash, or require a second appraisal on larger loans. Plan with cushion.
The largest loans. On the top lanes, a cash cap limits proceeds even if leverage would allow more. A borrower with enormous equity may find the cap, not the equity, sets the limit.
Non-warrantable condominiums. A condo project that fails standard financing rules is non-warrantable. Two lanes accept them. Most lenders do not.
State-law exceptions. Some states add their own cash-out rules. Texas, for example, has constitutional limits on cash-out loans. Where you live can change the structure.
Borderline loans. A loan only slightly above the county limit may be able to drop under it if you reduce the amount. The limit applies to the original loan amount, not a later balance. A conforming loan can carry different terms than a jumbo, so ask your broker to run both.
Same-lender refinances. Rescission and fees can work differently when you refinance with your current lender and take no new money. The details depend on the transaction.
What Rules Protect You?
Two federal protections matter in practice.
First, on a refinance of the home you live in, you generally have until midnight of the third business day after closing to cancel, according to the CFPB. A purchase loan carries no such right. In practice, the lender holds your funds until that window ends. Plan around it if you are scheduling a deposit on the next home. If you cancel the refinance, you still owe the original loan.
Second, lenders must make a reasonable, good-faith determination that you can repay. The CFPB’s ability-to-repay assessment explains the rule. In practice, expect the lender to verify your income, debts and assets. The old 43% debt-ratio cap in the standard qualified mortgage test was replaced with a price-based test. Lenders still weigh your debt load, and many keep their own limits.
Key Terms Defined
Jumbo loan: A mortgage above the county’s conforming limit, so Fannie Mae and Freddie Mac cannot buy it.
Cash-out refinance: A new, larger first mortgage that pays off the old one and gives you the difference in cash.
LTV (loan-to-value): The loan amount divided by the home’s appraised value.
CLTV (combined loan-to-value): All loans on the home added together, divided by the value.
Reserves: Liquid funds you keep after closing, counted in months of your full housing payment.
Cash cap: A lender’s maximum on the cash you can take from a loan, even if leverage would allow more.
Non-warrantable condominium: A condo project that falls outside standard financing rules.
What Does the Decision Look Like?
Run through this checklist before you apply:
- Do you need the cash before the sale, or can you wait for the proceeds?
- Can you carry two housing payments for the overlap?
- Is your current loan worth keeping?
- Does your income documentation fit a standard lane, or does it need a lender match?
- Will your reserves hold up without counting the cash-out?
- What happens if the appraisal comes in low?
- Does your state add its own cash-out rules?
If most answers are yes, a jumbo cash-out may fit. If two or three are no, selling first or a HELOC may fit better.
Frequently Asked Questions
Which banks offer a jumbo cash-out refinance for downsizers?
Large banks, private banks, regional banks, credit unions and non-bank lenders all offer some version. Lendmire does not name or rank individual lenders. Which one fits depends on your loan size, credit, reserves and property. A broker can shop several wholesale lenders and match the program to your file.
How much equity must stay in the home?
It depends on the lane. Cash-out leverage sits below purchase leverage, and the top lane’s ceiling is 90% LTV, with several lanes at 89.99% CLTV and the rest at 80%. Cash-out caps are lower than those ceilings. Your broker can show the cap for each program that fits you. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Can cash-out proceeds count toward my reserves?
On many lanes they cannot, so plan to hold reserves separately. Reserves rise with the loan amount and are measured in months of your full payment. Confirm the rule for your program before you count on the cash.
Can I refinance a jumbo loan into a conforming loan?
Sometimes. If the new loan can fit under the county limit, a conforming program may apply. Your payoff, value and the amount you want to borrow decide it. A broker can run both paths side by side.
What if I rescind the refinance?
You still owe your original loan. The right to cancel applies to refinances of your primary residence, not purchases, and the lender holds your funds until the window closes.
Next Steps
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. All program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. 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 – Conforming Loan Limit Values
2. HousingWire – Conforming Loan Limit
3. CFPB
4. CFPB – Ability-to-Repay and QM Rule Assessment
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 a 7/6 ARM Works on a Jumbo Cash-Out Refinance · Jumbo Cash-Out Refinance vs Conforming Cash-Out on an Inherited House · Jumbo Cash-Out Refinance vs Conforming Cash-Out Within a Year of Buying
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.