The Quick Read: Usually about 10% of your home’s value at most, and often less. With 30% equity you owe roughly 70% of the value. A conventional cash-out on a one-unit primary residence caps the new loan at 80%, so the gap between 70% and 80% is your ceiling. Closing costs, financed fees, and any second mortgage come out of that gap before a dollar reaches you.
The Math in One Line
The formula is simple: home value × the program’s cap − what you owe on all liens − costs rolled into the loan = your cash.
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.
The 30% figure is not the cash. It is your starting position. The cap applies to the whole new loan, not to the cash you take. Think of the cap as a ceiling on total debt against the house.
Here is the 30% case, all in percentages of value:
- You owe about 70% of the value.
- The conventional cap on a one-unit primary residence is 80%.
- The gap is about 10 points of value.
- Costs financed into the loan shrink that gap.
- A second lien left in place shrinks it further.
It is tempting to read 30% equity as 30% in cash. That would leave you with no equity in the house, and no conventional program allows it.
This is also why the ceiling is a ceiling, not a quote. The final number depends on the appraisal, the fees on your Loan Estimate, and what the lender finds in your file. Everything here is subject to lender guidelines and full file review, and none of it is a commitment to lend.
Why Is the Real Number Smaller Than 10%?
Because several things get paid out of the new loan before you see cash. Think of the new loan as a bucket with a fixed top. Your old mortgage goes in first. Then the costs. Whatever room remains is yours.
Walk through it in order:
1. Appraisal sets the value. The cap is applied to the appraised value, not what you think the house is worth. A lower appraisal moves the whole ceiling down. At 30% equity that hurts, because a small drop in value eats into a margin that is only about 10 points wide.
2. The new loan pays off your first mortgage. This is the largest line item, and it is why your current balance matters so much.
3. Financed costs come out next. Closing costs, prepaid items, and points can be rolled into the new loan amount. Anything you roll in is cash you do not receive. The Loan Estimate shows this under closing costs financed from your loan amount.
4. Other liens count. If you have a second mortgage or a HELOC (a home equity line of credit, a revolving loan secured by the house) that stays in place, it counts toward the cap. If it gets paid off, it comes out of your proceeds instead. Either way, the room shrinks.
5. Credit and income review. The lender checks your credit, your debt-to-income ratio (your monthly debts divided by your monthly income), and sometimes reserves. For example, Fannie Mae’s eligibility matrix applies reserve requirements to cash-out loans on automated findings with a debt-to-income ratio above 45%.
What does that mean in practice? Say you have 30% equity and the costs plus a leftover second lien eat up a few points of value. Whatever is left of the 10-point gap is your cash, and nothing guarantees how much that will be. The thinner the margin, the more each fee matters.
Does the Loan Type Change the Answer?
Yes, and sometimes by a wide margin. On conventional and FHA loans the ceilings are close to each other, while VA and the wholesale no-mortgage-insurance lane can reach further. Here is how they compare.
| Program | Cash-out ceiling | What it means at 30% equity |
|---|---|---|
| Conventional, one-unit primary | 80% of value | About 10 points of value |
| Conventional, 2-4 units, second home, investment | 75% of value | About 5 points of value |
| FHA cash-out | 80% of Adjusted Value | About 10 points, on a different value base |
| VA cash-out | Up to 100% of reasonable value | Potentially far more, if the lender allows |
| Wholesale no-MI lane (30-year fixed) | Up to 89.99% | See below |
Verify the conventional 80% figure for your file against the Fannie Mae eligibility matrix, which separates limited cash-out from cash-out and steps leverage down by occupancy and unit count.
FHA. HUD cut the FHA cash-out limit to 80% of Adjusted Value, down from 85%, for case numbers assigned on or after September 1, 2019, per Mortgagee Letter 2019-11. So FHA does not unlock extra cash over conventional. Note the phrase “Adjusted Value.” FHA does not simply use the raw appraisal.
VA. The VA stops guaranteeing refinance loans above 100% of reasonable value, per VA Circular 26-18-30. A veteran with 30% equity could in principle reach well beyond 10 points. Individual lenders often set lower caps than the VA allows, so the number you actually see depends on the lender.
The wholesale no-mortgage-insurance lane. Across the wholesale programs Lendmire places files with, one lane reaches 89.99% LTV (loan-to-value, the loan as a percent of the home’s value) with no mortgage insurance. It requires a 680 score, a 50% ratio ceiling, a thirty-year fixed rate, a primary residence, a conforming balance, and its own six months of seasoning. It is not written on Texas homesteads. At 30% equity, that lane would in theory widen the gap from 10 points toward 20. Treat that as a ceiling, since it is subject to lender guidelines and full file review.
Texas has its own rule. 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.
What If It’s Not a One-Unit Primary Residence?
Occupancy sets the leverage. A conventional cash-out can be written on a primary residence, a second home, or an investment property, and the property type and unit count decide how much you can borrow. Two- to four-unit primary homes, second homes, and investment property all sit at 75%, a lower cap than the one-unit primary residence. At 30% equity, the room shrinks from about 10 points to about 5.
When Can’t You Refinance, Even With Equity?
Equity is necessary, not sufficient. Several timing and eligibility rules can block a cash-out entirely.
- Age of the loan being paid off. On the wholesale conventional programs, the first mortgage you are replacing must be at least 12 months old, counted note date to note date.
- Time on title. At least one borrower must have been on title for 6 months. Freddie Mac’s guide lists the same six-month rule and names delayed financing (a cash-out after buying the home with cash) as an exception. Inheritance and legal awards are also exceptions.
- Occupancy. Freddie Mac’s rules for a cash-out on a primary residence changed in March 2024 so that all borrowers must occupy the home. That affects couples where one person does not live there.
- Credit. The wholesale conventional programs start at a 620 decision score, with a total ratio ceiling of 50% on most automated files. Some lenders set higher floors.
- Credit events. The agencies set waiting periods after events like a chapter 7 discharge (four years), a foreclosure (seven years), or a short sale or deed-in-lieu (four years). Documented extenuating circumstances can shorten them.
Cash-Out vs. Rate-and-Term: Don’t Mix Them Up
A refinance changes your loan terms. It is not a cash tool. On a one-unit primary residence it can go to 95% LTV, with only incidental cash back. Fannie Mae’s limit is the lesser of 2% of the new loan or $2,000. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
The government streamlines, the FHA Streamline and the VA IRRRL, are also not cash-out tools. They replace an existing FHA or VA loan with lighter paperwork and a net tangible benefit test. If your goal is cash, you need the actual cash-out program.
Mortgage Insurance and Cash-Out
On the conventional agency path, mortgage insurance is required above 80% LTV, except in the wholesale no-MI cash-out lane described above. You can request cancellation at 80% of the original value with good payment history, no subordinate liens, and no decline in value. The servicer must end it automatically at 78%. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
For a standard conventional cash-out capped at 80%, mortgage insurance usually does not come into play. It matters if you push toward the higher-leverage options. Lendmire’s conventional program sheet lists typical annual premiums of 0.58% to 1.86% of the balance. Those are program-sheet ranges, not quotes.
Should You Take the Maximum?
Not automatically. Taking the full gap means the largest new balance, and a cash-out replaces your whole first mortgage with a bigger one. Your new payment reflects the larger balance, the term, and the pricing. A cash-out also draws down current home equity, closing costs can be substantial, and you may be replacing an older loan with a different one.
Run through a few questions before you borrow the maximum:
- What is the cash for? A project that adds value is different from spending.
- What are you giving up? Your existing loan terms get replaced.
- How thin does your equity get? With only about 10 points of room, taking all of it leaves you at 80% LTV. A dip in values leaves little cushion.
- Is the fee drag worth it? On a small amount of cash, closing costs can eat a big share. These costs typically include origination, appraisal, and title fees. If you need a small sum, a different tool may fit better. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Taking less than the cap is allowed. You choose the loan amount, and the cap only limits the top.
Your Right to Cancel
On a refinance of your primary home, you generally have until midnight of the third business day to cancel. Saturdays count. Sundays and legal holidays do not. If required disclosures were missing or wrong, the right can last up to three years. If you rescind, you still owe the original loan. Funds are released after the window closes.
Key Terms Defined
LTV (loan-to-value): Your loan balance as a percentage of the home’s appraised value.
Equity: The home’s value minus everything you owe against it.
Cash-out refinance: A new, larger mortgage that pays off your old one and gives you the difference in cash.
Limited cash-out (rate-and-term) refinance: A refinance that pays off the old loan and costs, with only small incidental cash back.
Seasoning: The waiting period a lender wants, such as months on title or months since your current loan started.
HELOC: A home equity line of credit, a revolving loan secured by the house.
Adjusted Value: The value base FHA uses to apply its cash-out cap.
Frequently Asked Questions
Can I get 30% of my home’s value in cash if I have 30% equity?
No. The cap applies to the total new loan, not the cash. If the cap is 80%, you owe 70%, and the room is about 10 points, minus costs and other liens. Getting 30% in cash would leave you at zero equity, which standard conventional cash-out programs do not allow.
Will closing costs reduce my cash?
Yes, if you roll them into the loan. Costs financed into the new balance come out of the room under the cap. You can instead pay them separately, but that is cash from your pocket. Your Loan Estimate and Closing Disclosure show the closing costs financed from your loan amount, so you can see the net effect.
What if the appraisal comes in lower than I expected?
It shrinks your cash fast. The cap applies to appraised value, so a lower number moves the ceiling down across the whole loan. At 30% equity, the margin is only about 10 points wide. A modest drop in value can cut your usable cash sharply or push you under the cap altogether.
Does a second mortgage or HELOC change the number?
Yes. A second lien counts against the cap. If it stays in place, it uses up room. If it is paid off in the refinance, the payoff comes out of your proceeds. In both cases, you end up with less cash than the simple 10-point gap suggests.
Can I do a cash-out right after buying my home?
Usually not. Most programs want a borrower on title for six months. The first mortgage being paid off must also be at least 12 months old on the wholesale conventional programs. Delayed financing after a cash purchase, inheritance, and legal awards are named exceptions.
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. Start with Lendmire’s cash-out refinance programs page.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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. Fannie Mae Eligibility Matrix (reserves and DTI)
2. Fannie Mae Eligibility Matrix
3. HUD Mortgagee Letter 2019-11
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 a Cash-Out Refinance Gives an S-Corp Owner · How to Plan and Use a Cash-Out Refinance to Access Cash From Home Equity · How to Qualify and Apply for a Cash-Out Refinance on Your Home
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- 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.