Mortgage Refinance Limits

Your Refinancing Options

Most owners have several refinancing pathways depending on their financial goals and current mortgage situation. The right choice depends on whether you want to change your loan terms, access equity, or have a simplified refinancing process. Available mortgage refinance solutions include: 

• Rate-and-term refinancing: This popular option allows you to change your interest rate and loan term without altering the loan amount significantly. It’s ideal if you want to secure a lower interest rate, switch between fixed and adjustable rates, or change your loan duration to save on interest costs.  Many homeowners choose this option when interest rates drop below their current rate, potentially saving thousands over the life of their loan. 
• Cash-out refinance loans: These allow you to borrow more than you currently owe on your home loan and get the difference in cash. Many homeowners use this option to consolidate debt, fund home improvements, or cover major expenses. The interest rates on cash-out refinances are lower than on credit cards or personal loans, making this an attractive way to access equity while keeping borrowing costs manageable.
• Streamline refinance loans: Available for VA, FHA, and USDA loans, these streamlined processes typically require less documentation and may not need an appraisal. They’re designed to quickly move borrowers into better loan terms with minimal hassle. 
• Reverse mortgage: These loans are only available for homeowners aged 62 and older. A reverse mortgage turns home equity into regular income without requiring monthly mortgage payments.

Conventional Loan Refinance Limits

Conventional loans follow conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loan limits determine the maximum amount you can borrow without entering jumbo loan territory, which typically comes with stricter requirements and higher interest rates. 

The conforming loan limit for 2025 is $806,500 for single-unit homes in most counties across the United States. In high-cost areas like San Francisco, New York City, and parts of Hawaii, these limits increase to $1,209,750, to account for high property values. 

Exceeding these limits doesn’t mean you can’t refinance, but your loan would be classified as a jumbo loan, which requires excellent credit, significant assets, and possibly a larger down payment. 

VA Loan Refinance Limits

VA loans offer veterans and active duty service members flexible refinancing options with competitive rates. Unlike many other loan types, VA loans don’t have a specific maximum loan amount. Instead, lenders focus on your available entitlement and the property’s appraised value. 

For Interest Rate Reduction Refinance Loans (IRRRLs), also known as VA streamline refinance loans, you can typically refinance your existing VA loan without requiring a new appraisal or extensive income verification. This streamlined process makes it easier to take advantage of lower interest rates. 

Mortgage refinance limits for IRRRLs are technically not constrained by a specific dollar amount or percentage of home value. Instead, the loan amount is limited to your existing VA loan balance plus allowable fees, closing costs, and discount points. The purpose of this loan is to reduce your interest rate or monthly payment, not to extract equity from your home. 

If you want to tap into your home equity, you can use a VA cash-out refinance loan in which you can refinance up to 100% of your home’s value when you work with Griffin Funding. However, most lenders recommend maintaining at least 10% equity to protect against market fluctuations and ensure financial stability. 

FHA Loan Refinance Limits

FHA purchase loans follow county-based limits similar to conventional loans but are typically slightly lower. These limits are adjusted annually and determined based on median home prices in each county.

FHA loan refinance limits work differently. For FHA streamline refinances, you can refinance your existing FHA loan with reduced documentation and potentially without an appraisal. This option is ideal if you’re looking to get a lower interest rate or reduce your monthly mortgage payment without changing your loan amount.

For FHA cash-out refinance loans, the maximum refinance amount is usually limited to 80% of your home’s value. This ensures you maintain adequate equity while still accessing cash for your financial needs. The limit may also vary based on your credit score, debt-to-income ratio, and property location. 

Cash-Out Refinance Limits

Cash-out refinance max amounts typically range between 80-90% of your home’s value, depending on the loan type and lender requirements. This loan-to-value (LTV) restriction ensures you maintain some equity in your home while still accessing cash. 

Most lenders cap the maximum at 80% of your home’s value for conventional cash-out refinances. This means if your home is worth $500,000, the maximum refinance amount would be $400,000 minus your current mortgage balance. 

VA loans offer more generous cash-out options, sometimes allowing up to 90% or more of your home’s value. 

The amount you can access also depends on your credit score, debt-to-income ratio, and the lender’s specific guidelines. Better credit scores typically unlock higher cash-out limits and more favorable interest rates, making the cost to refinance more affordable over time. 

Discover the Right Refinancing Solution Today

Finding the right mortgage refinance option starts with knowing what you want to achieve and the limits for each loan type. Whether you want lower rates, different terms, or cash from your equity, understanding these limits helps set clear expectations. Griffin Funding offers several different types of refinancing solutions to choose from, and the Griffin Gold app makes it easy to track your application and communicate directly with your loan officer. 

Our team will guide you through every step of the refinancing process, showing you when to refinance and how to get the most value. Knowing how much you can borrow is just the start of making smarter choices about your home loan. Contact Griffin Funding today to find the right refinancing option for you.

Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 11 years in business.