The Quick Read: It depends on the lowest of several limits, and it is almost always less than your paper equity. Your cash is the new loan minus what that loan must pay off, minus closing costs rolled into it. The new loan is capped by the appraised value times the lender’s cash-out leverage limit, and by your ability to repay. Cash-out limits sit below purchase limits, and the largest loans can also carry a flat cash cap.
Here is the plain version. You are replacing your current mortgage with a bigger one and keeping the difference. The appraisal sets the ceiling. The payoff and the costs come out of it. What is left 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.
Lendmire’s jumbo cash-out refinance program page lays out the lanes available. For home loans for personal residences, the team arranges these loans through wholesale lenders, and consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Lendmire is a broker, so the lender sets the final terms after a full file review.
How the Number Gets Built
Your cash equals the appraised value times the lender’s maximum cash-out leverage, minus your payoff, minus financed costs. Then a second set of tests can pull it lower: a cash cap, reserves, credit, and debt ratios. The smallest result wins. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Here is the formula in steps:
1. Start with the appraised value. Not the online estimate. Not what the neighbor’s house sold for. The appraiser’s figure.
2. Multiply by the maximum cash-out leverage. Leverage is the share of the value the new loan can reach. On cash-out, that share is lower than on a purchase.
3. Subtract your payoff. That is the first mortgage, plus any second lien the lender requires you to clear.
4. Subtract costs rolled into the loan. Closing costs and prepaids you finance shrink the check.
5. Apply any cash cap. If the lane has one, it can override steps 1 through 4.
6. Check the ability-to-repay tests. Income, debts, credit, and reserves must support the loan size. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Across the wholesale jumbo programs Lendmire places files with, the headline lane reaches 90% loan-to-value (LTV) with a 660 decision score. Several lanes reach 89.99% combined loan-to-value (CLTV), and the rest stop at 80%. Loans go up to $5,000,000 on the largest lanes. Those are the program’s outer limits, and they describe purchase-style leverage. Cash-out sits lower, so do not plug 90% into your own math. All figures are subject to lender guidelines and full file review.
What Makes a Loan “Jumbo”?
A loan is jumbo when it starts one dollar above your county’s conforming limit. Size is the only test. Credit and income do not make a loan jumbo.
The limit comes from the Federal Housing Finance Agency (FHFA). It sets the maximum loan size that Fannie Mae and Freddie Mac can buy. FHFA’s annual limit announcement sets one baseline for most counties and a higher ceiling, 150% of the baseline, for high-cost areas. Your county’s number is in FHFA’s county lookup.
The limits reset each January. Any early figure you see from a lender before FHFA announces it is that lender’s own policy. Check the county lookup before you assume your new loan is jumbo.
This matters for cash-out. A homeowner with a modest balance can cross the county line just by pulling cash. The new loan, not the old one, decides which side you land on. Once you cross it, the jumbo lenders’ rules apply, not agency rules.
A Worked Example (Round Numbers, Hypothetical)
Say your home appraises at a value we will call 100%, and your first mortgage is 40% of that value. Assume a lender’s cash-out ceiling of 70% and financed costs of 2% of value. These are illustration-only percentages, not program figures. Cash comes to 70 minus 40 minus 2, or 28% of the appraised value.
Now change one input at a time:
| Scenario | What changes | Cash vs. base |
|---|---|---|
| Base case | Ceiling 70%, balance 40%, costs 2% | 28% of value |
| Appraisal 5% low | Ceiling shrinks with value | About one-eighth less |
| HELOC to clear | Second lien must be paid off | Drops by the lien’s size |
| Cash cap applies | Flat cap beats the math | Capped at the cap |
| Costs financed higher | Fewer dollars left over | Drops one-for-one |
A 5% appraisal miss sounds small. Run it: the value falls to 95, the ceiling to 66.5, and cash to 24.5% of the original value. That is a 12.5% cut in your check from a 5% miss. Leverage multiplies appraisal misses.
You do not need dollar figures to do this. Use percentages of value, then convert at the end.
Why Your Cash Is Less Than Your Equity
You get less than your paper equity because lenders require a cushion, and then subtract costs and liens. Equity is your home’s value minus what you owe on it. The CFPB’s home equity guide says lenders typically require you to keep at least 10% to 20% of your home’s value as equity. That guide is a general reference. It is not a jumbo program rule.
Four things shrink the check:
- The leverage cushion. You cannot borrow to 100% of value.
- The payoff. Your current mortgage comes off the top.
- Second liens. A HELOC or home equity loan usually has to be paid off in the same closing. Whether that counts as cash-out depends on the lender.
- Financed costs. Every cost you roll into the loan is cash you do not receive.
Think of it as three buckets: the cushion the lender keeps, the debts it pays, and the check you get. Only the third bucket is yours.
Does a Cash Cap Override the Math?
Yes, when the lane has one. On two of the largest lanes, a flat cap limits the cash you can take regardless of your equity. The cap and the leverage test run side by side. Whichever is lower sets your check.
This catches big-equity borrowers off guard. Picture a homeowner with a very large home and a low balance. The leverage math says one number. The cap says a smaller one. The smaller one wins.
Ask early whether your loan size puts you in a lane with a cash cap. It changes which lane fits you. A smaller loan in a different lane may have no cap but a lower size ceiling.
What Else the Lender Tests
Cash-out is a credit decision, not just a math problem. The lender must document that you can repay the new, larger loan. That means income, assets, credit, and property documents.
- Decision score. The headline lane starts at 660. Some lenders set a higher floor on larger or lower-equity loans.
- Debt ratios. The fixed lanes allow up to a 50% ratio ceiling. The adjustable lanes stop at 45%, and the interest-only lanes at 43%.
- Reserves. These are savings measured in months of the full payment. They rise as the loan amount rises.
- Appraisals. Above a lane’s threshold amount, two appraisals are required. Appraisal practice varies by lender.
- Property type. Two lanes accept non-warrantable condominiums. That is a condo project that does not meet agency standards.
- Occupancy. Primary, second-home, and investment occupancy each have lane-specific leverage. Occupancy decides the leverage, so a second home gets a different ceiling than the house you live in.
For context only, the CFPB’s market data shows jumbo refinance borrowers had a median credit score of 760. That is a market observation, not a floor. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Seasoning is the waiting period between events, like buying the home and refinancing it. Jumbo lenders set their own seasoning rules. A recent purchase, or a home currently listed for sale, can change what a lender allows. Confirm both before you apply.
Cash-Out vs. Rate-and-Term vs. HELOC
Three tools reach equity or restructure debt. They are not interchangeable.
| Factor | Cash-out refi | Rate-and-term refi | HELOC |
|---|---|---|---|
| Replaces first mortgage | Yes | Yes | No |
| Cash to you | Yes | Little or none | Yes, as a line |
| Leverage limit | Lower than purchase | Higher | Varies |
| Closing costs | Generally higher | Generally higher | Often lower |
The CFPB’s description of similar loans says a cash-out refinance replaces your mortgage with a larger one and you take the difference. It also says that, depending on the terms, it may cost more or less than a HELOC. A HELOC leaves your first mortgage in place.
Here is a toss-up worth thinking through. If your existing first mortgage is one you want to keep, a second lien may beat replacing the whole thing. If the first mortgage is one you would restructure anyway, cash-out folds both jobs into one closing. Neither is wrong.
What You Give Up
Cash-out costs more than the closing table shows. The Federal Reserve’s refinancing guide says that when you take out equity, you own less of your home, and it takes time to build that equity back. Your balance rises. Your payment can rise, and your payoff date can move out.
Your home is the collateral. If you cannot make the payments, the lender can foreclose. There is also a safety valve. You generally have a right to cancel a refinance on your primary home after you sign, and the cash is normally disbursed after that window ends. The CFPB explains the right of rescission: if you cancel, you still owe your original loan.
Key Terms Defined
Jumbo loan: A mortgage above the county’s conforming limit, which Fannie Mae and Freddie Mac cannot buy.
Cash-out refinance: A new first mortgage, larger than your old one, where you keep the difference as cash.
LTV (loan-to-value): The new loan 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 flat dollar limit on the cash you can take, whatever your equity.
Reserves: Savings, counted in months of the full payment, that you hold after closing.
Your Pre-Application Checklist
Work through this before you talk to anyone:
1. Write down your current first mortgage payoff and any second lien.
2. Look up your county’s conforming limit and see where the new loan lands.
3. Estimate the new loan as a percentage of a realistic value, not the highest one.
4. Subtract the payoff, then a cushion for financed costs.
5. Note your credit score, your monthly debts, and your liquid savings.
6. Decide what the cash is for. A one-time need and a recurring need may call for different tools.
The CFPB has found that cash-out borrowers often use the money to pay down other debts, especially credit card and auto debt. The same report saw an initial credit score improvement followed by a gradual worsening. Know your goal before you borrow.
Weighing Your Options
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. Call 828-256-2183 or ask for a quote. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
Frequently Asked Questions
Is there a fixed maximum cash-out on a jumbo loan?
No single maximum exists. Federal rules do not set one. The lender’s leverage limit, your payoff, financed costs, and any cash cap each set a ceiling, and the lowest one wins. On the largest lanes, a flat cash cap applies on top of the leverage math. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Can I take out all of my equity?
No. Lenders require you to keep part of your home’s value as equity, and cash-out limits sit below purchase limits. Costs and liens come out of what is left. Plan on a check noticeably smaller than your paper equity.
Does a low appraisal really change the cash much?
Yes, more than most borrowers expect. Cash is what remains after the payoff, so a small drop in value hits the check by a larger percentage. In the round-number example above, a 5% appraisal miss cut cash by about an eighth.
What happens to my HELOC when I refinance?
It usually has to be paid off or handled at closing. Whether that payoff counts as cash-out depends on the lender. Either way, the payoff reduces your net check.
Can I use a jumbo cash-out on a second home or rental?
Occupancy decides the leverage. Second-home and investment occupancy each have lane-specific limits, generally different from a primary residence. Ask which lane fits before you plan around a number.
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 Values
2. FHFA – Conforming Loan Limit data page
3. CFPB – Using home equity to meet financial needs
5. CFPB – Similar loans to a HELOC
6. Federal Reserve – Refinancings
8. CFPB: CFPB Report Finds Cash Out Mortgage Refinance Borrowers Improve Credit Scores
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 to Go Fixed?
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.