Mortgage Navigator • Conventional • Refinance

Conventional Refinance & Cash-Out

The most important refinance question is often not the rate—it is how the transaction is classified under Fannie or Freddie.

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Explore Conventional Refinance

Limited / no-cash-out refinance

Payoff, closing costs, limited cash back and subordinate liens.

Cash-out refinance

Equity extraction and transaction requirements.

Cash-out seasoning

12-month first-lien seasoning and 6-month ownership.

Delayed financing

Recovering documented cash invested in a recent purchase.

Subordinate liens

When paying off a second mortgage changes refinance classification.

Adding/removing borrowers

Who must remain on the new loan and key exceptions.

Inheritance/divorce/title changes

Ownership exceptions and legal awards.

Free-and-clear property

Cash-out refinancing when no mortgage lien exists.
Fannie vs. Freddie: both agencies generally require 12-month seasoning on an existing first lien being paid off in a standard cash-out refinance and at least six months of ownership/title history, but borrower/title exceptions and transaction details differ.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Refinance classification matters. A transaction that falls outside limited/no-cash-out rules may become cash-out even when the borrower receives little or no cash personally.