Cash-Out Refinance Rates
AAPL Member · Direct Lender Since 2016 · NMLS #1979189
An investment-property cash-out refinance is priced like a DSCR loan, with one wrinkle: pulling cash out generally costs a little more than a straight rate-and-term refinance, because higher leverage and the cash-out itself add risk. The trade is almost always worth it — turning trapped equity into your next down payment is how portfolios compound — but it helps to know what drives the number. Cash-out refinance rates on a rental are set by your leverage, the property’s coverage ratio, and your credit, and they move with the broader rate environment. This page explains the components and what moves your rate. We’ve priced cash-out refinances as a direct lender since 2016.
Leverage Is the Biggest Lever
The more cash you pull, the higher your loan-to-value, and the higher the LTV, the higher the rate. We lend up to 75% of appraised value on a cash-out refinance (80% in some scenarios), and pricing improves as you stay below that ceiling. If your goal is the lowest rate, leave more equity in; if it’s maximum cash for the next deal, you’ll accept a slightly higher rate for the higher LTV. Our hard money loan estimator lets you see that trade-off in dollars before you commit.
DSCR, Credit, and Structure
Because a cash-out on a rental is a DSCR loan, the coverage ratio is the second big lever — a property that comfortably covers the new, larger payment prices better, and while we have no minimum DSCR, a thinner ratio prices higher. Credit is reviewed (no minimum, but stronger credit lowers the rate), and your structure choice — 30-year fixed, ARM, or interest-only — trades predictability against a lower early payment. As with any DSCR loan, ask about the prepayment structure, since many carry a step-down penalty in the early years. The full picture of what we evaluate is on the requirements page.
The No-Seasoning Advantage Doesn't Cost Extra
One thing that doesn’t raise your rate: refinancing soon after a renovation. We have no seasoning requirement after a rehab, so you can pull equity at the new, higher value as soon as the property is improved and leased — without a rate penalty for doing it quickly. That’s what makes the BRRRR cycle efficient: you recycle capital at market pricing, not a “fast-refi” surcharge. The acquisition side of that cycle runs on our hard money loans. You can also compare the broader rental side on our DSCR loan rates today page.
What Affects Your Cash-Out Rate
What Affects Your Cash-Out Rate
Frequently Asked Questions
They vary by deal and move with the rate environment, so there’s no single figure to post. Your rate depends most on your LTV — how much cash you pull — then your DSCR and credit. A live quote on your property and target cash-out is the only real number.
Pulling cash out raises your loan-to-value and adds risk compared with a straight rate-and-term refinance, so it prices a little higher. The more cash you take relative to the property’s value, the higher the rate — which is the trade-off for the liquidity.
Yes. Higher leverage means higher risk and a higher rate. If your priority is the lowest rate, leave more equity in the property; if it’s maximum cash for the next deal, you accept a slightly higher rate for the higher LTV.
No. We have no seasoning requirement after a renovation, so you can refinance at the new value as soon as the property is improved and leased, at standard market pricing. There’s no surcharge for moving quickly — which is what makes BRRRR efficient.
Yes. We offer 30-year fixed, ARM, and interest-only structures. A fixed rate locks your payment for predictability; an ARM or interest-only option lowers the early payment and frees up cash flow. We help you pick based on your hold plan.
Want a real number on your cash-out?
Tell us the property, the balance, and the rent. We price on equity and income with no seasoning penalty, so you recycle capital at market pricing.