The Quick Read: It depends on three numbers: your appraised value, your payoff balance, and the cap the specific program sets for cash-out. The formula is value × maximum LTV − payoff of all liens − financed costs = cash to you. The cap limits the total loan against the home. It is not the share of your home’s value you get as cash.
What Is the Formula for Cash Out at the Maximum LTV?
Cash to you equals the maximum new loan minus everything the new loan must pay off or cover. The maximum new loan is the appraised value times the program’s LTV cap. Payoffs and costs come out of that ceiling, and what remains is yours.
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.
In plain steps:
1. Appraised value sets the base. The lender’s appraisal controls, not your estimate.
2. Multiply by the cap to get the largest new loan allowed.
3. Subtract the payoff of your current first mortgage, plus any second lien or HELOC paid in the same transaction.
4. Subtract costs that are financed or deducted from proceeds.
5. What’s left is your cash.
The cap covers all liens combined. A homeowner who sees “maximum 80% LTV” and expects 80% of the home’s value in cash has misread it. The existing mortgage eats most of that room first. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Zero cash to close on a cash-out loan does not mean zero costs. The costs are financed into the balance or netted from your proceeds, so they reduce the check either way.
What “Maximum LTV” Means on Jumbo Cash-Out Loans
The headline ceiling across the wholesale jumbo lanes Lendmire works with is 90% LTV. Several lanes reach 89.99% CLTV, and the rest stop at 80%. Those labels are not interchangeable. LTV counts the first loan against value, and CLTV adds any second lien. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Here is the catch for this question: cash-out is set at lower leverage than a purchase. The 90% figure is the ceiling for the program family, not the cash-out cap. On the largest lanes, a cash cap can bind as well. A refinance that clears the LTV test can still be trimmed by a dollar limit on proceeds.
Jumbo loans are not bought by Fannie Mae or Freddie Mac, so no federal rule sets a “jumbo maximum.” Each lane sets its own caps by loan size, occupancy, property type and documentation method. That is why published “maximums” disagree from one source to the next. They describe different lanes.
Lendmire’s jumbo cash-out refinance program page lays out how these lanes are organized. Loans on the largest lanes run up to $5,000,000, with a 660 decision score on the headline lane. Figures like these are subject to lender guidelines and full file review, and none of them is a commitment to lend.
What Counts as “Jumbo” Here?
A jumbo loan starts one dollar above your county’s conforming limit. The Federal Housing Finance Agency sets that limit each year. It is a ceiling on what Fannie Mae and Freddie Mac may buy. Counties where 115 percent of the local median home value exceeds the baseline get a higher limit, so the line sits in a different place depending on where the home is.
That has a practical side effect. Cash-out can push you across the line. Take a homeowner whose current loan is conforming. Pulling cash raises the new balance, and if it lands above the county limit, the file becomes a jumbo cash-out. The caps, documentation and reserves change with it.
The reverse also works. If the new loan lands at or below the county limit, it is a conforming cash-out. Lendmire’s piece comparing jumbo cash-out with conforming cash-out at maximum LTV on a primary home walks through that tradeoff in more depth.
Worked Example: Four Homeowners, One Cap
Dollar figures would mislead here, so this example uses percentages of the home’s appraised value. The 75% cap is an assumption for illustration only. It is not a program figure. Costs are left out of the table and come off the bottom line afterward.
| Home | Payoff (% of value) | Max loan at 75% | Gross cash (% of value) |
|---|---|---|---|
| A | 30% | 75% | 45% |
| B | 45% | 75% | 30% |
| C | 60% | 75% | 15% |
| D | 72% | 75% | 3% |
Same home value, same cap, wildly different checks. Home D fits under the leverage cap but ends up with almost nothing. Financed costs would likely wipe out that 3%, and a cash-out that nets zero is not a reason to refinance.
Now change only the cap. Take Home B with a 70% cap instead of 75%. Gross cash falls from 30% of value to 25%. Five points of cap are five points of value, gone from your check.
What Shrinks the Check: The Appraisal
A lower appraisal cuts cash faster than most borrowers expect. The cap is applied to the lender’s value, so every point of appraisal shortfall removes the cap percentage of that value from the maximum loan. Your payoff does not change. The whole reduction comes out of your cash.
Run it on Home B, with a payoff at 45% of your expected value and the same 75% illustrative cap:
| Appraisal vs. your expectation | Max loan (% of expected value) | Gross cash (% of expected value) |
|---|---|---|
| At expectation | 75.0% | 30.0% |
| 5% lower | 71.25% | 26.25% |
| 10% lower | 67.5% | 22.5% |
A 10% miss on value cut this borrower’s gross cash from 30% of expected value to 22.5%, a quarter of the check. The leverage math amplifies appraisal risk. The smaller your equity cushion relative to the cap, the more a soft appraisal hurts.
Above a lane’s size threshold, the loan may require two appraisals. When two valuations come in, the program generally works from the lower-of-the-two logic its guidelines specify, so the weaker number can set the base.
When a Cash Cap Beats the LTV Cap
On the largest lanes, a cash cap limits gross proceeds regardless of how much equity you hold. Picture a borrower with a very large equity position in a high-value home. The LTV math says the check could be enormous. The cash cap says it can’t.
In that case the binding number flips. Below the cap, LTV drives the answer. Above it, the dollar limit does, and extra equity buys you nothing. Two lanes carry a cash cap. Ask early whether the file you are considering sits on one of them.
Some programs also restrict whether cash-out proceeds can count toward reserves. If you planned to use the check to satisfy your own reserve requirement, confirm that before you count on it. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
How Occupancy, Size and Property Type Change the Number
Several factors move the cap down from where a purchase would land:
- Occupancy. A primary residence gets the highest leverage. Second homes and investment occupancy sit at lane-specific, lower levels. Occupancy decides leverage, and the lane’s parameters set the figure.
- Loan size. Caps can differ by loan size, and the largest lanes add a cash cap. Reserves, measured in months of the full payment, rise with the amount.
- Property type. Condominiums, non-warrantable condominiums and rural homes often carry lower caps. Non-warrantable condominiums are accepted on two lanes.
- Income documentation. Some alternative-documentation structures cap leverage lower than full documentation does.
- Structure. Fixed, adjustable and interest-only versions exist. The ratio ceiling is 50% on the fixed lanes, 45% on the adjustable lanes and 43% on the interest-only lanes.
- State rules. Texas, for example, has its own constitutional limits on home-equity cash-out, which can sit tighter than the program cap.
Seasoning matters too. Rules on how long you have owned the home or held the existing loan can delay a cash-out. Jumbo seasoning is lane-specific, so it is worth asking before you apply.
Key Terms Defined
Jumbo loan: A mortgage above the county’s conforming loan limit.
Cash-out refinance: A new, larger mortgage that replaces your current one and pays you the difference.
LTV (loan-to-value): The first mortgage balance divided by the appraised value.
CLTV (combined loan-to-value): All liens on the home added together, divided by the appraised value.
Cash cap: A dollar limit on gross proceeds that applies even when the LTV test would allow more.
Seasoning: The length of time you have owned the home or held the existing loan.
Reserves: Liquid assets, counted in months of your full payment, that you hold after closing.
What the Lender Will Check Besides Leverage
The cap gets the attention, but the file has to clear several other tests:
- Credit. The headline lane starts at a 660 decision score. Other lanes may ask for more, subject to lender guidelines.
- Debt ratios. The ceilings above are 50%, 45% and 43%, depending on the lane’s structure.
- Reserves. These scale with the loan amount.
- Documents. Expect pay stubs or alternative income proof, tax returns where required, bank statements, the current mortgage statement and proof of homeowners insurance.
- Appraisal. Full appraisal, with two above a lane’s threshold.
Think of the LTV cap as the first gate, not the only one. A file can clear leverage and still stall on reserves or ratios.
How Much Equity Should You Leave in the Home?
Even where leverage allows a large check, leaving a cushion is a sound habit. A Consumer Financial Protection Bureau guide on using home equity notes that lenders typically require you to keep 10–20% of your home’s value as equity. It also notes that no option converts 100% of equity to cash.
The same guide points out that a cash-out refinance may lengthen your payoff time. Your monthly payment may also rise because a bigger loan replaces the current one. A jumbo cash-out is a long-term decision. Replacing a mortgage you like with a larger one is a real cost, even when the check looks attractive.
The Loan Estimate is the document that shows the estimated terms and cash to close. Because this is a consumer mortgage, a Loan Estimate and a Closing Disclosure apply. Compare the two before you sign, and request Loan Estimates for the same kind of loan from more than one source.
Common Mistakes
Treating the cap as the check. An 80% cap on a home with a large existing balance leaves very little room. Do the subtraction first.
Counting on your own value estimate. The appraisal controls. Budget with a cushion for a lower number.
Forgetting a second lien. A HELOC paid off in the same transaction reduces cash as well. If a second lien stays in place, CLTV, not LTV, may be the number that binds.
Ignoring financed costs. Every point of cost rolled into the balance is a point of cap you cannot take as cash.
Assuming jumbo works like conforming. Fannie Mae’s Eligibility Matrix sets conforming cash-out caps. Jumbo lanes set their own, generally at lower leverage for cash-out than for a purchase. Fannie Mae’s limited cash-out refinance allows higher LTV but caps cash back at a small amount. That is a different product from a true cash-out.
Treating a cash-out as free money. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
A Quick Checklist Before You Ask for Numbers
- Your best estimate of value, and a lower number to stress-test.
- The payoff on your first mortgage, plus any HELOC or second lien.
- How much cash you actually need, and what it is for.
- Whether the new loan will land above or below the county’s conforming limit.
- Occupancy and property type, since both change the cap.
- Your reserves, in months of the full payment.
- The current mortgage statement and proof of homeowners insurance.
Frequently Asked Questions
Does the maximum LTV tell me how much cash I get?
No. The maximum LTV caps the new loan against appraised value, with all liens counted. Cash is what remains after your existing mortgage is paid off and costs are covered. A homeowner with a large balance may reach the cap and still receive little or nothing.
Can I get 90% LTV on a jumbo cash-out?
Unlikely. The 90% LTV figure is the ceiling for the program family, with 89.99% CLTV on several lanes and the rest stopping at 80%. A cash-out refinance is set at lower leverage than a purchase, and the largest lanes also add a cash cap. The exact cap depends on the lane, loan size, occupancy and property type, subject to lender guidelines.
What happens if the appraisal comes in low?
The maximum loan shrinks in direct proportion, while your payoff stays the same. The full reduction lands on your cash. A 10% shortfall on value can cost a borrower with modest equity far more than 10% of the check. Above a lane’s threshold, two appraisals may be required.
Can the extra cash push my loan from conforming to jumbo?
Yes. If the new balance rises above your county’s conforming limit, the file becomes a jumbo cash-out, with its own caps, reserves and documentation. If it lands at or below the limit, it is conforming. A veteran weighing options can also read Lendmire’s piece on how much cash comes out of a VA cash-out refinance at a high LTV.
Do closing costs come out of my proceeds?
Yes, in one of two ways. They are either financed into the new balance, which uses up cap room, or deducted from your proceeds. Either way the check shrinks. Zero cash to close does not mean zero costs.
Putting a Real Number on Your Own Equity
The formula is simple, but the inputs are specific to your home. 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. Getting to the answer takes a conversation about your balance, your value and what the money is for, not a single published maximum.
Whatever number comes back, remember what moves it most. A few points of appraisal, the cap for your loan size, and the amount you owe today decide the check far more than the headline LTV does.
For current guidelines and terms, see Lendmire’s jumbo loan programs page.
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. FHFA – Conforming Loan Limit Values
2. CFPB – Using Home Equity guide
3. CFPB – Loan Estimate explainer
4. Fannie Mae – Eligibility Matrix
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 an Inherited House? · How Much Cash Comes Out of a Jumbo Cash-Out Refinance With a Non-Resident Co-Borrower?
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
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.