# 6 Best Cash-Out Refinance Lenders of June 2026
A cash-out refinance lets homeowners convert home equity into liquid cash. You refinance your mortgage for more than you owe, pocket the difference, and reset your loan terms. This strategy works best when mortgage rates remain favorable or when you need funds for major expenses.
Money Magazine reviewed top cash-out refinance lenders operating in June 2026. The ranking considers factors like interest rates, fees, application speed, and customer service quality. Homeowners shopping for cash-out refinances should compare offers from multiple lenders rather than accepting the first quote.
Cash-out refinances carry real costs. You'll restart your loan term, which extends your payoff timeline. Closing costs typically run 2 percent to 5 percent of your new loan amount. Interest rates on cash-out refinances usually run 0.5 percent higher than standard rate-and-term refinances because lenders face greater risk.
The math only works in specific situations. Use cash-out proceeds for home improvements, debt consolidation, or major life expenses. Avoid using the money for discretionary spending or investments with uncertain returns. Calculate whether the interest savings justify the closing costs and extended loan timeline.
Timing matters. Cash-out refinances make sense when rates drop significantly from your original mortgage rate, when you've built substantial equity (typically 20 percent or more), and when you plan to stay in your home long enough to recoup closing costs.
Before applying, check your credit score, gather recent tax returns and pay stubs, and review your home's current value. Lenders require a property appraisal, which costs $300 to $500 and takes 7 to 10 days. Processing times vary widely. Some lenders close in 7 days; others need 30