The Quick Read: Some banks do offer this, but which ones depends on your credit, your equity, and how you plan to sequence the two purchases. Large depositories write many jumbo loans, and so do wholesale lenders reached through a broker. You take a new, larger first mortgage on the home you own, pay off the old loan, and use the leftover equity as cash toward the next home. Lender overlays vary, so the right program depends on your file, and every figure here is subject to lender guidelines and full file review.
What Counts as a Jumbo Cash-Out Refinance?
A jumbo cash-out refinance is a new first mortgage that exceeds your county’s conforming limit and pays you cash at closing. The cash is the difference between the new loan and what you owe, minus closing costs.
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 conforming limit is the cap on loans that Fannie Mae and Freddie Mac can buy. FHFA sets those limits and raises them in high-cost counties. It is not one national number. Look up your county because a loan one dollar above your local limit is jumbo.
Jumbo is a size label. It says nothing about how the loan is underwritten. Many jumbo loans are fully documented and verify income, assets, and debts like any other mortgage.
Who Actually Offers This Loan?
Large banks, credit unions, online lenders, and mortgage brokers all touch jumbo cash-out lending, and none of them is the right answer for everyone. HousingWire reports that the jumbo market is primarily dominated by banks. Each lender sets its own rules, though.
That is the honest answer to a “which banks” question. This article does not rank or name institutions, because the right lender depends on your property, credit profile, leverage need, and documentation. A bank that fits a borrower with a long deposit history may not fit a self-employed borrower with variable income.
A broker works differently. Lendmire is a mortgage broker, not a lender. It arranges loans through a network of wholesale cash-out refinance lenders and matches your scenario to a program. Lendmire’s jumbo cash-out refinance program page shows how those lanes are laid out. Consumer lending is available in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington.
Key Terms Defined
Jumbo loan: A mortgage above the conforming limit for the county where the home sits.
Cash-out refinance: A new first mortgage that pays off the old one and hands you the leftover equity as cash.
Net cash: The cash you actually keep after the old loan, closing costs, and any required payoffs.
Reserves: Money left in the bank after closing, measured in months of the full housing payment.
LTV and CLTV: Loan-to-value is the loan divided by the home’s appraised value.
Seasoning: The time you have owned the home before a lender will pay out cash.
How Is the Loan Underwritten, Step by Step?
1. Application and Loan Estimate. You apply, and the lender issues a Loan Estimate. It shows estimated cash to close and whether closing costs are paid from the loan amount. Get one from more than one lender and compare the full terms side by side.
2. Income, assets, and debts. The lender adds your total monthly obligations, including the new payment on the home you are refinancing, and divides by your income. That is your debt-to-income ratio. On the wholesale fixed lanes we place, the ratio ceiling is 50%. It is 45% on the adjustable lanes and 43% on the interest-only lanes.
3. Credit. The headline lane we work with sets a 660 decision score. Other lanes and lenders may set higher floors.
4. Appraisal and the equity test. The appraisal sets the value, and the maximum LTV caps the new loan. Closing costs rolled into the loan sit inside that cap. Above a lane’s threshold amount, two appraisals are required.
5. Reserves. Jumbo lenders want cash left over. Across the wholesale programs we place files with, reserves are counted in months of the full payment and rise as the loan amount rises.
6. Closing Disclosure. Before closing, you receive a Closing Disclosure showing final numbers. Compare it with your Loan Estimate.
How Much Cash Can You Actually Pull Out?
Less than you may expect. Cash-out lending is capped at lower leverage than a purchase. On a purchase, the headline wholesale jumbo lane reaches 90% LTV, which is the loan-to-value ceiling. Several lanes allow 89.99% CLTV, which is the combined loan-to-value figure when more than one loan sits on the home. The rest of the lanes stop at 80%. Cash-out always sits below those purchase ceilings, and two of the largest lanes also put a cash cap on how much you can take. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
For reference, Fannie Mae’s eligibility matrix shows how conforming cash-out caps drop by occupancy. Its investment-property cash-out limit is lower than the limits for a home you live in. That shows the pattern: more cash out and less owner occupancy both mean tighter leverage. Jumbo lenders write their own versions of those caps.
Run the logic in percentages. Start with your home’s appraised value, then apply the lane’s cash-out leverage cap to it. The new loan can only reach that percentage of the value. Subtract your old payoff, and then your closing costs if they are paid from the proceeds, and what remains is your net cash. Closing costs rolled into the loan still count against the cap, so they leave less room for cash in hand.
“Zero cash to close” does not mean zero costs either. Costs can come out of your proceeds. The Loan Estimate lists total closing costs and cash to close as separate lines, so read both.
Which Comes First: the Refinance or the Purchase?
Most borrowers refinance first, then buy. The cash is in your account and documented before you write an offer. A purchase-first plan uses a bridge loan or a contingent sale instead. Here is how the two compare.
| Factor | Refinance first | Purchase first |
|---|---|---|
| Cash for down payment | Documented before offer | Depends on bridge or sale |
| Old home’s payment | Counted in the purchase loan’s qualifying | Counted unless sale is contracted |
| Risk | Two payments if old home stays | Timing gaps between closings |
| Offer strength | Strong, cash in hand | Often contingent |
Refinance-first gives the cleanest paper trail. Your down payment sits in your account, and the purchase lender can see where it came from. The cost is a bigger payment on the old home, and the next lender counts it.
Where Does the General Rule Break?
Edge cases decide more of these files than the base program does. Four of them come up again and again.
You keep the old home. Under Fannie Mae’s rules for other real estate owned, when your current home is pending sale but has not closed, both the current and proposed payments count. That is waived only if you provide an executed sales contract and other documentation. Jumbo lenders can be stricter. If you keep the old home and the new loan on it counts in full, your debt ratio rises sharply.
Bridge or swing loans. A bridge loan can fund the new home’s closing before the old one sells. The resulting obligation counts as debt, and the waiver generally depends on a signed sales contract for the old home.
Occupancy of the new home. A primary-residence loan expects you to move in. Fannie Mae’s occupancy definition says you occupy within 60 days of signing and keep living there for at least one year, with a military-orders exception. So you cannot use this to buy a home you plan to rent out right away. If you are weighing a second home instead, the short answer is that occupancy decides the leverage. The lanes we place files with set different leverage for primary, second-home, and other occupancy.
Condominiums. Two wholesale lanes accept non-warrantable condominiums, meaning condo projects that fail standard agency rules. Most lenders will not touch them, so project type matters.
A freshly bought home hits seasoning limits too. Lenders usually want a minimum ownership period before paying out cash, and rules differ by lender. Ask before you plan around a quick turnaround on a home you just purchased.
Which Structure Fits: Fixed, Adjustable, or Interest-Only?
The wholesale jumbo lanes offer all three. A fixed loan holds one payment for the term. An adjustable loan starts lower and can change after an initial period. An interest-only loan delays principal payments for a set window.
The structure changes your ratio ceiling, as noted above. It also changes the payment the next lender counts. Pick the structure with the purchase in mind, because the new home’s lender will look at the old home’s payment before it approves anything.
What Are the Alternatives?
A cash-out refinance is one way to reach home equity, and not always the best one. The right option depends on your current loan and your timeline.
| Option | How it works | Best when |
|---|---|---|
| Jumbo cash-out | Replaces your first mortgage | Your current terms are not worth protecting |
| HELOC or home equity loan | Added on top of your first mortgage | You want to keep your existing first loan |
| Bridge loan | Short-term loan against old home | You must buy before you sell |
| Sell first | Proceeds fund the next home | You can live in between |
Look at what you give up on the old loan before you decide. If your existing first mortgage has terms you like, a second lien or a sale may fit better.
Questions to Ask Any Lender
These questions separate a workable plan from a surprise at the closing table.
- What is the maximum LTV for cash-out on my occupancy and loan size?
- Is there a cap on cash back?
- How many months of reserves do you require, and can cash from this loan count?
- Do you require one appraisal or two?
- How will you count the old home’s payment when I apply for the next loan?
- Is there a minimum ownership period before I can take cash out?
- Will you underwrite the second loan, or do I need a separate lender?
Common Pitfalls
Most problems start with a wrong assumption.
- Assuming jumbo means no documentation. Lenders must make a good-faith effort to confirm you can repay, which the CFPB calls the ability-to-repay rule. It covers jumbo loans too.
- Treating the county limit as one number. It varies by location.
- Counting the old payment as gone. It counts until a signed contract and the right documents say it does not.
- Spending the cash on closing costs and forgetting reserves. Net cash is smaller than gross cash.
- Skipping the second appraisal on a large loan. Plan for it above the lane’s threshold amount.
- Ignoring a low appraisal. A lower value cuts the loan, which cuts your cash and can break the down payment plan.
Frequently Asked Questions
Can I use jumbo cash-out proceeds as the down payment on my next home?
Yes, in most cases. The cash lands in your account at closing, and the purchase lender will want to see it documented there. Seasoned funds are easier to document than money that arrived days before an application.
Does the lender count my old home’s payment on the new loan?
Usually, yes. It counts until you have an executed sales contract for the old home and the lender’s required documents. If you are keeping the home, expect the full payment to count in your debt ratio.
Is a jumbo cash-out refinance a non-QM loan?
Not by default. Jumbo describes loan size, while qualified or non-qualified describes how the loan is underwritten. Many jumbo loans are fully documented, and ability-to-repay rules apply either way.
How much equity do I have to leave in the home?
It depends on the lane. Cash-out sits at lower leverage than a purchase, and two of the largest lanes add a cash cap. A broker can match your loan size and occupancy to the lane that fits.
Is a bridge loan or a refinance better when I buy before I sell?
It depends on timing and your equity. A refinance gives a clean cash position but resets the loan on the old home. A bridge loan avoids that but adds short-term debt, so compare both against your actual sale plan.
Next Step
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. Ask for a Loan Estimate from every lender you consider, and compare them line by line.
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.
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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 Values
2. HousingWire – 2026 conforming loan limit
3. Fannie Mae Eligibility Matrix
4. Fannie Mae Selling Guide B3-6-06, Other Real Estate Owned
5. Fannie Mae Selling Guide B2-1.1-01, Occupancy Types
6. CFPB: What Is a Qualified Mortgage
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 Much Cash Comes Out of a Jumbo Cash-Out Refinance on a Paid-Off Home? · Jumbo Cash-Out Refinance vs Conforming Cash-Out When You Have Owned the Home Under a Year · Jumbo Cash-Out Refinance vs Conforming Cash-Out at Maximum LTV on a Primary Home
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.