How much equity do I need?

A rate-and-term refinance can work with as little as 3-5% equity. Dropping PMI takes about 20%, and a conventional cash-out requires you to keep 20% (an 80% loan-to-value cap).

Will refinancing hurt my credit?

The hard inquiry causes a small, temporary dip. Rate-shopping multiple lenders within a ~45-day window counts as a single inquiry for scoring.

Refinance a Second or Vacation Home

Here is the straight answer on refinance a second or vacation home for 2026 — what qualifies, what to watch for, and the smartest path.

The short answer

Refinancing a second home is allowed but priced higher than a primary residence, with conventional second-home cash-out capped near 75% LTV and rate-and-term typically up to 90%. Lenders verify the property meets second-home occupancy rules and is not a disguised rental. Reserves and credit requirements are stricter than for your main home.

What refinance lenders look for

Equity: ~3-5% for a rate-and-term, 20% to drop PMI, and 20% kept for a cash-out (80% LTV cap).
Credit: roughly 620+ for conventional; FHA and VA streamlines do not re-check your score.
Debt-to-income: generally under ~43-50% including the new payment.
Break-even: closing costs divided by monthly savings — refinance only if you will keep the home past it.

Refinance rates and guidelines change. Join the free Refi Rate Guide alerts to hear when the rules or rates that affect this situation move.

Your next steps

Pull your credit, estimate your home's value and current balance to gauge equity, and get quotes from two or three lenders the same day so the comparison is apples-to-apples. Then run the break-even before you commit.

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Frequently Asked Questions

Refinance a Second or Vacation Home — is it possible in 2026?: Refinancing a second home is allowed but priced higher than a primary residence, with conventional second-home cash-out capped near 75% LTV and rate-and-term typically up to 90%. Lenders verify the property meets second-home occupancy rules and is not a disguised rental. Reserves and credit requirements are stricter than for your main home.
How much equity do I need?: A rate-and-term refinance can work with as little as 3-5% equity. Dropping PMI takes about 20%, and a conventional cash-out requires you to keep 20% (an 80% loan-to-value cap).
Will refinancing hurt my credit?: The hard inquiry causes a small, temporary dip. Rate-shopping multiple lenders within a ~45-day window counts as a single inquiry for scoring.