Refinance basics

5 guides, read top to bottom, take you from Conventional Cash-Out Refinance Guide to Conventional Cash-Out: Common Mistakes to Avoid.

Read in this order

1. Conventional Cash-Out Refinance Guide1 min read

   How Fannie Mae and Freddie Mac cash-out refinances work: loan-to-value limits, seasoning, occupancy and pricing.

   • A conventional loan is not insured by a government agency.
   • Fannie Mae and Freddie Mac apply loan-level price adjustments for cash-out based on credit score and LTV.
2. Delayed Financing After a Cash Purchase1 min read

   How buyers who paid cash can recover funds soon after purchase.

   • Fannie Mae’s delayed financing exception allows a cash-out refinance soon after a cash purchase, without the usual seasoning.
   • Documented source of the cash used, arm’s-length purchase and a settlement statement.
3. Conventional Cash-Out Seasoning and Title Rules1 min read

   How long you must own a home before a conventional cash-out refinance, and how title and recent listings are reviewed.

   • Under Fannie Mae's Selling Guide, at least one borrower generally must have been on title for at least six months before the disbursement date of a cash-out refinance.
   • If you are paying off an existing first mortgage, that loan generally must be at least 12 months old, measured from note date to note date, under current Fannie Mae rules.
4. Using Cash-Out to Pay Off Debt: Questions to Ask1 min read

   How to evaluate a debt-consolidation cash-out refinance before you commit.

   • Consolidating credit card or installment debt into a mortgage can lower the total monthly payment because mortgage terms are longer.
   • Short-term debts become long-term debts secured by your home.
5. Conventional Cash-Out: Common Mistakes to Avoid1 min read

   Practical errors people make with conventional cash-out refinances, and how to plan around them.

   • Using home equity for vacations, cars or everyday spending spreads a short-lived cost across many years and puts your home at risk.
   • A cash-out replaces the entire mortgage, so higher pricing on the new loan applies to the whole balance.

Run your own numbers

5 calculators on this site, all blank until you type:

• Cash-out estimate
• Payment and amortization
• Refinance break-even
• Debt-to-income check
• Closing cost worksheet

Check which programs fit

The loan finder asks six questions and points you to the programs worth reading about, with a side-by-side comparison table. It is education, not an eligibility decision.

Terms you will meet in these guides

• Cash-out refinancefirst in Delayed Financing After a Cash Purchase
• Seasoningfirst in Delayed Financing After a Cash Purchase
• Loan-to-value (LTV)first in Delayed Financing After a Cash Purchase
• Appraisalfirst in Conventional Cash-Out Seasoning and Title Rules
• Loan Estimatefirst in Using Cash-Out to Pay Off Debt: Questions to Ask
• Private mortgage insurance (PMI)first in Conventional Cash-Out Refinance Guide
• Conforming loan limitfirst in Conventional Cash-Out Refinance Guide
• Conventional loanfirst in Conventional Cash-Out Refinance Guide

Everything here is general education. Program rules change; confirm current requirements with the official sources below and with a licensed lender.

Sources

• Fannie Mae Single-Family
• Freddie Mac Single-Family
• Fannie Mae Selling Guide
• CFPB: Owning a home
• CFPB: Loan Estimate explainer
• Freddie Mac Single-Family Seller/Servicer Guide

Sources reviewed October 23, 2026. This page was assembled from the guides on this site.