Current cash-out refinance rates of 2026

Because cash-out refinances are considered riskier than their rate-and-term counterparts, cash-out refi rates are generally higher than regular refinance rates — specifically, between one-quarter and one-half a percentage point higher. For example, if rate-and-term refi rates are around 6.25%, you can expect a cash-out refinance rate of somewhere around 6.5% to 6.75%.

Rate shopping isn't optional here. In 2025, 78.7% of all refinancers paid above the most competitive market rate, according to Bankrate's Hidden Homeownership Tax research — the average overpayment ran $2,462 a year. Pull quotes from at least three lenders before you commit; the spread between the top and bottom offers on this page shows how much that shopping is worth.

Like all mortgage rates, cash-out refinance interest rates depend on both personal and market factors. These include:

• Your credit score
• Your debt-to-income (DTI) ratio
• The lender's policies
• Federal Reserve monetary policy
• Overall economic conditions

Your credit score and DTI ratio influence your approval chances and the loan terms you can qualify for. Market conditions, including Federal Reserve decisions and inflation, impact overall rate trends. For example, when inflation is high, the Fed might raise interest rates to cool the economy, which in turn raises borrowing costs and mortgage rates.

Because you’re taking out a bigger loan with a cash-out refinance, finding the best possible rate matters even more. Here’s how:

A cash-out refinance replaces your entire mortgage with a larger one. You're not just borrowing against your equity — you're refinancing debt you may have already paid down, often at a higher rate than you have now.

• Foreclosure risk. Your home secures the new, larger loan. Miss payments and you risk losing it, only now you owe more against it than before.
• Closing costs. Expect 2% to 5% of the new loan amount. On a $300,000 loan, that's $6,000 to $15,000, due at closing or rolled into the balance.
• A bigger payment, almost always: You're borrowing more, and cash-out rates are higher than standard refinance rates. If your new rate isn't at least 0.75 to 1 percentage point below what you're paying now, run the math before assuming this saves you money.

A cash-out refinance will raise your rate on your entire balance, not just the cash you take out. And if your current mortgage rate is lower than today’s rates, you’ll have to pay that higher rate on your entire mortgage balance, not just the new amount you’re borrowing.

A home equity loan or HELOC lets you tap equity while keeping your low first-mortgage rate intact. Compare both before refinancing the whole loan.

• Consolidating high-interest debt: Credit cards and personal loans typically carry higher rates than a mortgage. Rolling that debt in can lower your total interest cost — but it converts unsecured debt into debt secured by your house.
• Funding a renovation that adds value: A kitchen remodel or addition can increase resale value, though there's no guarantee it will recoup the full cost.

• If your new rate is at least 0.75 to 1 percentage point below your current rate and you'll stay past your break-even point, then a cash-out refinance can lower your total borrowing cost.
• If your current rate is below 5%, then a HELOC or home equity loan will almost always cost you less over time than resetting your whole mortgage.
• If you need the cash for discretionary spending like travel or a wedding, then skip this loan — you'll pay interest on it for up to 30 years.

Run your own numbers with Bankrate's mortgage refinance calculator before you apply.