A cash-out refinance is a refinancing of an existing mortgage loan, where the new mortgage loan is for a larger amount than the existing, and the borrower receives the difference between the two loans in cash. Basically, homeowners do cash-out refinances so they can turn some of the equity they’ve built up in their home into cash giving them more flexibility to:
Finance educational expenses
Make large purchases
Make home improvements
Take a dream vacation
Get money for life’s unexpected setbacks
Pay off high interest credit card debt
And much more!
*Other Restrictions and State Guidelines may apply.
