Cash-Out Refinance in Tennessee
Middle Tennessee’s run-up left serious equity in ordinary houses, and a cash-out refinance turns part of it into a renovation, a consolidation or the next property’s down payment. Tennessee’s recordation tax is charged on the whole new loan, so it is in our arithmetic from the first quote. Licensed statewide, in all 95 counties.
Tennessee Mortgage License 218217. NMLS #1925352.
Cash-out in Tennessee, 2026
Conventional and FHA
Up to 80% of value on a primary residence; lower on second homes and rentals
VA cash-out
Up to 100% under VA rules; most lenders cap at 90%
Recordation tax
$0.115 per $100 of the whole new loan
Transfer tax
None on a refinance
Closing
Title company or attorney near you, or a mobile notary
80%
Typical cap on a primary residence, FHA and conventional
$0.115
Recordation tax per $100 of the new loan
95
Tennessee counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Tennessee equity, with the recordation tax counted first.
A cash-out refinance replaces your mortgage with a larger one, up to 80 percent of appraised value on conventional and FHA, and pays you the difference at funding. On a $400,000 Murfreesboro home with $210,000 owed, the ceiling is $320,000, roughly $110,000 before costs. Veterans can reach up to 100 percent of value under VA rules, though most lenders cap at 90.
Tennessee’s recordation tax rides on the whole new mortgage, $0.115 per $100 above the first $2,000, about $365 on a $320,000 loan. The transfer tax does not return, because a refinance records no deed. The tax scales with the loan, which means a modest project financed by replacing a large first mortgage pays tax on everything; a HELOC pays it only on the second lien’s amount, and when your current rate is also worth keeping, that structure often wins. We price both on every file.
This page covers cash-out refinancing in Tennessee. The cash-out hub explains the product; refinancing in Tennessee prices every refinance type; VA in Tennessee covers the veteran version; and our Tennessee page covers the state as a whole.
What Tennesseans do with the money.
Three uses dominate Tennessee files. The loan does not care, but the plan should be worth the rate.
The house itself
Kitchens, baths and additions
Nashville-area houses bought five years ago are getting the kitchens their prices now justify. Equity pays for the work at a mortgage rate, one payment, and the value usually lands where you spent it.
One payment
Debt consolidation
Cards and personal loans rolled into the mortgage can cut the monthly total sharply. The trade is real, unsecured debt becomes debt secured by your home over a longer term, so we show the arithmetic both ways, recordation tax included.
Next property
Lake places and rentals
Equity in a Franklin primary becomes the down payment on a Tims Ford lake place or a rental near the campuses. The new payment is in the qualifying math from day one, underwritten the way the lender will.
Six Tennessee details on a cash-out file.
What the state changes about cost, timing and the closing. All of it shows on your Loan Estimate.
01
Recordation tax on the whole loan
$0.115 per $100 of the entire new mortgage above the first $2,000, paid whenever a mortgage records. About $365 on a $320,000 loan, and it is in our first estimate.
02
No transfer tax
The $0.37 per $100 transfer tax belongs to deeds. A refinance records a deed of trust, not a deed, so that line never appears.
03
Closing your way
A title company or an attorney can close, and mobile notaries are routine. We coordinate the package and the payoff either way.
04
The appraisal decides the ceiling
At 80 percent loan-to-value, the appraisal is the biggest number on the file. Middle Tennessee comps have moved quickly; a current sale nearby can add real borrowing room.
05
The right of rescission
When the new loan is secured by your principal residence, federal law gives you three business days to cancel, counted under federal rules from closing and delivery of the required notices, and the cash funds once that period passes. A refinance with your current lender is covered only as to the new money, and a second home or rental has no waiting period.
06
Seasoning and history
Most programs want about six to twelve months since you bought the home and clean payment history on the current mortgage. We confirm both before ordering anything.
The tax scales with the loan, so structure matters.
Replace a $280,000 first mortgage to reach $60,000 and Tennessee taxes the full $340,000: about $390. Borrow the same $60,000 as a HELOC and the tax falls on $60,000: about $67. Small numbers alone, but they point the same direction as the bigger one: if your existing rate is from the low-rate years, repricing the whole balance costs far more than the tax ever will.
When the current rate is near today’s market, or the amount is large and certain, the cash-out’s one fixed payment usually wins instead. We put both structures on one page, recordation tax computed on each, and recommend the cheaper path in writing.
Memphis to the Smokies
Cash-out refinances closed at a Tennessee title company or attorney’s office near you, in all 95 counties.
What each cash-out program needs.
Program rules are federal; the last column is the Tennessee layer. Your pro confirms which fits your file.
| Program | Equity, credit and terms | In Tennessee |
|---|---|---|
| Conventional cash-out | Keep 20% equity on a primary residence (limits vary by program; lower on second homes and rentals); usually 620, best pricing from about 740; full appraisal | Recordation tax on the full new loan, itemized up front |
| FHA cash-out | Keep 20% equity; often 580; owner-occupied only; new upfront and annual mortgage insurance | The MIP joins the payment; we price conventional beside it where equity allows |
| VA cash-out | Up to 100% of value under VA rules, most lenders cap at 90%; funding fee 2.15% first use, 3.3% after, exempt if you receive VA disability compensation | Heavily used around Fort Campbell and Mid-South; can replace a non-VA loan |
| HELOC instead | A second lien behind your current first mortgage; variable rate; draw as you go | The recordation tax falls only on the second lien’s amount; see the HELOC hub |
Equity ceilings are program rules; individual lenders can be stricter. The cash arrives after the three-business-day cancellation period on a principal residence.
How much could you take out?
Enter your home’s value and current balance. The calculator holds 20 percent equity back and shows the cash available at 80 percent loan-to-value, before closing costs and the recordation tax.
The U.S. mortgage market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Cash-out pricing runs slightly above rate-and-term; your quote shows the real spread on your file.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How a Tennessee cash-out works with us.
Four steps, one licensed pro, a Tennessee closing near you.
1
The two structures, priced
Cash-out against HELOC with the recordation tax computed on each, beside the new payment and the total cost of the money.
2
The appraisal early
The value sets the ceiling, so it is ordered as soon as you commit, with the title work running in parallel.
3
Underwriting
Income, the current mortgage’s history and the plan for the money, documented once, cleanly.
4
Sign, wait three days, funded
Title company, attorney or mobile notary. On a principal residence the three-business-day cancellation window runs, then the payoff and your cash move together.
Ready to see your Tennessee cash-out numbers?
A Tennessee-licensed pro shows you the cash available, the new payment, the recordation tax and the HELOC alternative on one page. Free, and it starts without a hard credit pull.
Cash-out refinancing in Tennessee, answered.
The questions Tennessee homeowners ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
How much cash can I take out of my Tennessee home?
Generally up to 80 percent of appraised value on a primary residence with FHA and most conventional programs (second homes and rentals are capped lower), minus your balance and costs; VA goes to 100 percent of value under its rules, with most lenders capping at 90. On a $400,000 home with $210,000 owed, the conventional ceiling is $320,000, about $110,000 before costs.
How much is the recordation tax on a cash-out?
$0.115 per $100 of the entire new mortgage above the first $2,000, about $365 on a $320,000 loan. It applies to the whole replacement loan, not just the cash portion, and it is itemized on your Loan Estimate from the first quote. There is no transfer tax on a refinance.
When would a HELOC beat a cash-out in Tennessee?
When your current rate is worth keeping, or when the amount is modest against your first mortgage, because the recordation tax then falls only on the small second lien. For large, certain amounts or one fixed payment, the cash-out usually wins. We price both with the tax computed on each.
Does a cash-out change my property taxes?
No. Tennessee assessments follow the county’s reappraisal cycle, not your mortgage. Refinancing, with or without cash out, leaves the assessment alone, and the new lender escrows for the existing bill.
How fast do I get the money?
After signing, a principal residence has the federal three-business-day cancellation period, and the funds move once it ends. Second homes and rentals have no waiting period. The overall timeline runs with the appraisal and underwriting, and we quote yours up front rather than promising a number.
Do I have to come to Michigan?
No. Your licensed pro handles everything by phone, email and e-signature, and you sign at a Tennessee title company or attorney’s office near you, or with a mobile notary.
Talk to a Tennessee-licensed pro about a cash-out refinance.
Tell us what you are looking to do and where in Tennessee. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
Licensed and reviewed
Tennessee Mortgage License 218217. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.