Ownership and mortgage age are separate
Fannie Mae generally requires at least one borrower to have held title for six months and an existing first mortgage being paid off to be at least 12 months old. Exceptions apply; ask the lender to check the complete rule. Fannie Mae — Cash-Out Refinance Transactions ↗
Equity is not the same as cash available
The permitted loan amount must leave room for required equity, existing payoffs, and transaction costs. A home-value estimate does not establish an appraised value or the maximum financing ratio for your transaction.
Compare alternatives before replacing your first loan
Look at the cost of replacing the entire mortgage as well as the extra cash. Compare a HELOC or other appropriate alternatives on payment, rate changes, fees, and repayment term. Ask how much money would actually reach you at closing.
PUT IT INTO PERSPECTIVE
An example, not an offer
Illustration only: a hypothetical $500,000 new loan minus a $430,000 payoff and $10,000 in financed costs leaves $60,000. This arithmetic does not imply that a $500,000 loan is available or appropriate.
Compare equity scenarios →Related questions
Check the original guidance
Requirements and availability can change. Confirm the program and lender terms for your application.