Cash Out Refinance Rates Today Compared

When considering a cash out refinance, the interest rate you qualify for plays a major role in whether the loan saves you money or simply increases your long-term cost.

Cash-out refinance rates vary based on loan purpose, property type, equity level, and borrower profile.

This guide compares today’s cash out refinance rates across common scenarios including primary homes, rental properties, and paid-off homes, so you can see where rates sit relative to your goals and strategy.

For owner-occupied homes, cash-out refinance rates usually sit near broader refinance rate averages, but they often carry a small premium because of the larger loan amount and added risk. In today’s market:

• 30-year primary home cash-out refinance rates often range in the low to mid-6% area on average.
• 15-year cash-out refinance rates typically appear slightly lower in nominal rate terms but carry higher monthly payments.

These averages help set expectations, but your actual quote may differ based on credit and equity.

When refinancing a paid-off home for cash out, your rate generally reflects the cost of obtaining a first mortgage from scratch.

Because there’s no existing lien to replace, lenders price these similarly to standard cash-out refinances on primary homes with slight variation based on lender policies and credit risk.

A typical pattern shows:

• Competitive 30-year rates for paid-off cash-out scenarios near the same range as primary cash out often mid-6% territory.
• The key difference is that you may need to meet stronger credit, income, and funding requirements compared to simple refinances.

Comparing cash out refinance on a paid-off home helps understand how rates apply when no existing mortgage is being replaced.

Cash-out refinance rates for rental properties are often higher than for primary residences because lenders view investment properties as riskier. Today’s trend shows:

• Rental property cash-out refinance rates typically run several tenths of a percentage point above primary home cash-out rates.
• Lenders also enforce stricter loan-to-value limits and underwriting standards, which can nudge pricing higher.

For example, while a primary home cash-out rate might sit in the mid-6% range, comparable rental property cash-out rates can be closer to high-6% or low-7% territory depending on credit and equity.

Comparing cash out refinance for rental property helps set realistic investor expectations.

When you compare rates side by side:

• Primary residence cash-out refinance rates tend to be the most competitive, assuming strong credit and equity.
• Rental or investment property cash-out rates are higher due to increased lender risk.
• Paid-off home cash-out rates generally follow primary residence patterns but may require stricter documentation.

This hierarchy reflects how lenders price risk differently based on occupancy and loan purpose.

Across all cash-out refinance types, your credit score heavily influences the rate offered:

• Higher scores usually unlock the lower end of the rate range.
• Moderate or lower scores may push your actual rate above published averages.

Understanding what lenders look at for refinance approval helps you see which factors weigh most in your pricing.

Loan-to-value (LTV) is a key determinant of your cash-out refinance rate.

As LTV increases approaching program limits (often 70%–80% depending on loan type), lenders often price loans with higher interest rates to compensate for increased risk.

This is true across primary, rental, and paid-off home cash-out scenarios.

When comparing cash-out refinance rates, don’t focus on the interest rate alone, always look at APR, which includes fees and points.

A slightly higher interest rate with lower fees can cost you less over time than a lower rate with high upfront costs.

This is especially important when comparing different lender offers and loan types.

Today’s broader mortgage market including average 30-year refinance rates influences cash-out pricing.

In the current environment, long-term mortgage rates recently dipped to multi-year lows near 6% on average, improving conditions for cash-out refinancing.

However, because cash out taps equity and increases loan risk, lenders still price a small premium compared to rate-and-term refinances.

Understanding refinance interest rates today vs last year helps you see whether current pricing is favorable for cash-out moves.

Cash-out refinance rates are most attractive when:

• They’re lower than the interest rate on debt you intend to pay off
• You can comfortably afford the new monthly payment
• You plan to stay in the home long enough to recover closing costs

In these scenarios, comparing cash out refinance interest rates vs standard refinance is critical to ensure the move strengthens your financial footing.

High cash-out rates may not be worth it when:

• Your equity is thin and pushes your LTV close to program limits
• Cash is used for non-essential or depreciating expenses
• You plan to sell or relocate in the near future

In those cases, alternatives like HELOC or home equity loans might offer better flexibility without locking you into a higher long-term mortgage cost.

Today’s cash-out refinance rates vary by property type and borrower profile, with primary residences typically getting the most competitive pricing, followed by paid-off homes and rental properties.

But interest rate is just one part of the decision. Your actual rate and APR, closing costs, equity level, and long-term goals all matter.

Always compare multiple personalized refinance quotes and analyze total loan cost, not just headline rates.

When done comprehensively, your cash-out refinance can be a tool that improves cash flow, pays off expensive debt, or funds value-adding investments not a long-term burden.