Refinance Up to 90% Loan-to-Value on Your Home: Real Math

You can refinance up to 90% loan-to-value on your home, but only through the right program, and cash-out loans cap lower than rate-and-term refinances on a primary residence. Duane Buziak, NMLS #1110647, walks through the LTV math on a $400,000 home, which loan programs can reach 90%, what the loan costs with taxes, insurance and mortgage insurance, and how to compare offers without a hard credit inquiry.
Refinance Up to 90% Loan-to-Value on Your Home: Real Math
Duane Buziak

Duane Buziak
Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage LLC
Licensed Mortgage Broker serving Virginia, Florida, Tennessee, Georgia, and Washington, specializing in VA home loans and first-time homebuyer programs.

You can refinance up to 90% loan-to-value on your home, but only through the right program. A rate-and-term refinance can often reach that level or higher. A cash-out refinance at 90% is a narrower path, because standard conventional cash-out loans generally cap lower on a primary residence. Whether 90% is open to you depends on your loan program, credit profile, occupancy and the rules of the specific wholesale lender behind the loan. This article covers how the LTV math works, which programs can get there, what a 90% loan costs once taxes, insurance and mortgage insurance are counted, and how to compare options without a hard credit inquiry.

By Duane Buziak, NMLS #1110647

How 90% Loan-to-Value Is Calculated on a Refinance

The formula is the new loan amount divided by the appraised value. On a home appraised at $400,000, 90% LTV means a maximum new loan of $360,000 ($400,000 × 0.90). Add closing costs you finance into the loan and the ratio rises with them, so the number that matters is the final loan amount, not the cash you hoped to receive.

LTV versus combined LTV

LTV counts one loan. Combined loan-to-value (CLTV) counts every lien against the property. If you owe $250,000 on your first mortgage and $30,000 on a HELOC, your CLTV today is $280,000 ÷ $400,000, or 70%. A refinance that pays off both liens and replaces them with one $360,000 loan is a 90% LTV transaction, and your cash out is the new loan minus both payoffs and costs. A HELOC you leave in place counts toward the ceiling, so it is never ignored.

Appraised value sets the number

The appraisal, not the county’s tax-assessed value and not an online estimate, determines your LTV. An assessment can sit well above or below what an appraiser finds from recent comparable sales. If the appraisal comes in at $380,000 instead of $400,000, a 90% cap drops your maximum loan from $360,000 to $342,000.

Rate-and-term versus cash-out

A rate-and-term refinance replaces your loan to change the rate, term or both, with little or no cash back. A cash-out refinance borrows more than you owe and pays you the difference. Guidelines treat cash-out as higher risk, so maximum LTV is usually lower for it. Ceilings also shift with occupancy, credit profile and program. As of 2026, the Fannie Mae Selling Guide and FHFA materials are the reference points for conventional loans, and you should confirm current limits there before relying on any figure.

Which Loan Programs Allow Cash-Out Up to 90% LTV

Conventional loans sold to Fannie Mae and Freddie Mac have, as of 2026, generally capped cash-out refinances on a one-unit primary residence at 80% LTV, with lower caps for second homes and investment properties. The reasoning is risk-based: a borrower who pulls equity out has less cushion, and cash-out loans have historically performed worse than rate-and-term loans. Check the current Fannie Mae Selling Guide and the Freddie Mac Guide for exact limits, because they are updated periodically.

So where does 90% cash-out come from? Usually one of these routes:

  • VA cash-out refinance. VA rules allow eligible veterans and service members to borrow at higher LTVs than conventional programs. Individual wholesale lenders set their own caps within VA rules, and 90% is a common ceiling. Review the program basics at VA.gov.
  • FHA cash-out refinance. FHA has its own cash-out cap, which sits below 90% as of 2026. Confirm the current figure at HUD.gov.
  • Rate-and-term refinances. If you do not need cash and only want to lower your rate or drop an adjustable rate, conventional programs can allow considerably higher LTVs than their cash-out limits. At 90% LTV, mortgage insurance usually applies.
  • Non-agency products. Some wholesale lenders offer programs outside Fannie Mae and Freddie Mac with their own LTV limits, pricing and credit rules. Availability varies by broker partner and borrower profile.

This is why Duane Buziak shops hundreds of wholesale lenders instead of one product menu. Overlays, which are a wholesale lender’s own rules layered on top of program minimums, differ widely. A 90% option may exist with one wholesale lender and not another, and a minimum credit score or occupancy rule that disqualifies you in one place may not apply elsewhere.

These programs apply to homeowners in the states where Duane Buziak is licensed: Virginia, Florida, Tennessee, Georgia, the District of Columbia, North Carolina, South Carolina and Maryland. Program details differ by borrower and property, so no single answer fits every file.

Qualifying for a 90% LTV Cash-Out Refinance

Credit. The higher the LTV, the less room a lender leaves for risk, so 90% programs typically ask for stronger credit than an 80% loan. Minimum scores vary by program and wholesale lender. Scoring models vary too: FHFA announced in 2025 that VantageScore 4.0 may be used for loans delivered to Fannie Mae and Freddie Mac, but rollout timing differs by lender and program, so ask which model applies to your file. VantageScore 4.0 is the model used in Duane Buziak’s soft pull.

Debt-to-income and reserves. Debt-to-income (DTI) divides your monthly debts, including the new payment, by gross monthly income. Many programs allow DTIs in the mid-40s percent range, and some automated approvals go higher with compensating factors. Reserves are liquid funds left after closing, measured in months of payments. Cash-out files on higher-LTV programs sometimes require them.

Seasoning. Programs generally require you to have held your current mortgage for a minimum period before a cash-out refinance. As of 2026 conventional and FHA programs have asked for about 12 months, and VA has its own payment-count and time requirements. Verify the current rule with the specific program, since it can change.

Property and occupancy. A primary residence receives the most generous LTV. Second homes and investment properties carry lower maximums, and multi-unit properties are often limited further. If you are considering a rental, expect 90% to be out of reach on most programs.

A typical document checklist:

  • Recent pay stubs and W-2s, or tax returns if self-employed
  • Your latest mortgage statement showing balance and payment
  • Your homeowners insurance declarations page
  • HELOC statement, if you have one
  • Government ID and, for VA loans, your Certificate of Eligibility or discharge paperwork

Total Cost of Ownership Worksheet: A $360,000 Refinance at 90% LTV

A payment quote tells you little about the real cost. Here is a full monthly picture. This is an illustration with stated assumptions, not a rate quote or an offer of credit.

Assumptions: appraised value $400,000; new loan $360,000 (90% LTV); 30-year fixed at an illustrative 6.5%; existing payoff $250,000; closing costs $9,000; homeowners insurance $1,800 per year; mortgage insurance 0.60% of the loan per year; property tax at an assumed $1.00 per $100 of assessed value on a $400,000 assessment.

The tax rate is a placeholder for the math. Actual rates are set locally and change, so use your own county’s published rate. For a Virginia example, Henrico County posts its current figures on its official real estate assessments page; confirm the rate and its effective date there, and look up your own county’s assessor or tax office wherever your home is.

  • Principal and interest: $2,275 per month
  • Property tax: $4,000 ÷ 12 = $333
  • Homeowners insurance: $1,800 ÷ 12 = $150
  • Mortgage insurance: $360,000 × 0.60% ÷ 12 = $180
  • Total monthly cost: $2,938

The same example shows the cash side. The $360,000 loan pays off the $250,000 existing balance. If the $9,000 in closing costs is taken from proceeds, your net cash is $360,000 − $250,000 − $9,000 = $101,000. Ask Duane Buziak about no-out-of-pocket closing options, which can change how costs are structured and whether they come out of your proceeds or the loan balance.

The takeaway is that $2,275 is about 77% of the real monthly cost. Taxes, insurance and mortgage insurance add $663 per month, and that gap is what a principal-and-interest quote hides. Also remember you now owe $110,000 more than before in this example, and every dollar of that carries interest for 30 years unless you pay it down faster.

Mortgage Insurance at 90% LTV and When It Can Come Off

Conventional loans above 80% LTV typically carry private mortgage insurance (PMI), because the borrower has less than 20% equity. The cost depends on credit score, LTV and loan type. The 0.60% annual figure above is an assumption, which works out to $180 per month, or $2,160 per year, on $360,000. VA loans carry no monthly mortgage insurance, though they have a funding fee. FHA loans carry their own mortgage insurance premium structure, so check HUD.gov for the current rules.

The removal math

Using the same loan, 80% of the original $400,000 value is $320,000, so you need to pay the balance down by $40,000. At the illustrative 6.5% with a $2,275 payment, that takes roughly 95 payments, a little under eight years. Early payments are mostly interest, which is why $40,000 of principal takes so long. Removing PMI at that point saves $180 per month, or $2,160 per year.

Under the Homeowners Protection Act, PMI on covered loans terminates automatically when your balance is scheduled to reach 78% of original value. Here that is $312,000, which arrives after roughly 109 payments, about nine years. The CFPB explains both routes: you can request cancellation at 80% if you have a good payment history, no subordinate liens and the property value has not declined, and automatic termination follows at 78% of original value. Confirm the current wording and which loans are covered, since it applies to specific loan types.

Appreciation can shorten this. If a new appraisal later values the home at $450,000, your $360,000 balance is already 80% of value, and you may be able to ask your servicer to reconsider. Servicers apply their own seasoning and appraisal rules for value-based removal, so ask yours before paying for an appraisal.

Comparing Brokers, Banks and Online Mortgage Companies

The table below compares general, publicly documented features. Verify each company’s current offerings on its own site as of 2026, since programs and processes change. Where a detail could not be confirmed, the cell says so.

ProviderCredit check methodNumber of loan sourcesProgramsCash-out optionsProcess
Duane BuziakNoTouch Credit Pull (soft pull, VantageScore 4.0) for pre-approvalHundreds of wholesale lendersConventional, FHA, VA and others, depending on borrower profileCash-out to 90% where a program allows itIndependent broker shops and compares options; available 24/7
Rocket MortgageVerify on company siteIts own lending platformConventional, FHA, VA and jumbo (verify full menu)Offered; LTV limits vary by programOnline and app-based, with phone support
Movement MortgageVerify on company siteIts own lending platformConventional, FHA, VA and others (verify full menu)Offered; LTV limits vary by programLoan officer-led, with local branches
Guild MortgageVerify on company siteIts own lending platformConventional, FHA, VA and others (verify full menu)Offered; LTV limits vary by programLoan officer-led, with local branches
NFM LendingVerify on company siteIts own lending platformConventional, FHA, VA and others (verify full menu)Offered; LTV limits vary by programLoan officer-led, with local branches
Typical bankVaries by institutionOne institution’s product menuVaries; often conventional and some government programsVaries by institutionIn-branch or online, typically one institution’s guidelines

None of these is a poor choice in itself. The structural difference is that a company funding its own loans offers its own menu and its own overlays, while a broker places your file with whichever wholesale lender fits. If one wholesale lender caps cash-out at 80% and another allows 90% for your profile, a broker can move you to the second. That is the idea behind Dare to Compare: put real offers side by side before committing.

Comparing used to cost something in credit. The NoTouch Credit Pull is a soft credit pull mortgage option that lets you see a no hard inquiry mortgage pre-approval, so you can learn what you qualify for without a hard hit on your score. A mortgage pre-approval without hard pull still gives you real numbers to compare. A hard inquiry usually comes later, once you choose to move forward with a specific loan. The CFPB’s owning-a-home resources explain how shopping and credit inquiries work.

Is 90% Right for Your Home? The Decision Rule

A 90% loan-to-value refinance is possible, but it depends on three things lining up: the program, your credit and the property type. Conventional cash-out generally stops lower, VA and certain wholesale programs can go higher, and a rental or second home will usually be capped below a primary residence. Before you borrow, run the full monthly math from the worksheet above, including taxes, insurance and mortgage insurance, and decide whether the cash is worth the extra interest and the longer path to removing mortgage insurance.

Ready to find a competitive mortgage rate from hundreds of lenders without impacting your credit score? Get your free no-touch pre-qualification today and discover exactly what you qualify for with personalized guidance from a trusted mortgage expert. A soft pull pre-approval with Duane Buziak shows which wholesale options fit your situation before any hard inquiry.

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