Wednesday, March 30, 2022 / by Joe Johnson
What is a cash-out refinance?
How can it help me?
What are the risks?
Being a homeowner not only gives you a property where you can live and build memories with your family, it is also an investment from which you can draw funds if you need them.
If you have equity built up in your home—meaning your home is worth more than what you owe on your mortgage—it’s possible to use some of that value toward reducing your debt or paying for a major life milestone through a cash-out refinance.
What Is a Cash-Out Refinance?
To refinance means to exchange your current mortgage for a new one that saves you money in the long run; for example, by lowering your rate or shortening your loan term.
A cash-out refinance is a type of refinancing in which you take out an entirely new, bigger loan to replace your original mortgage, and you pocket the difference at closing. The amount you receive depends on your equity, f ...