A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference in cash. It is a way to tap the equity you have built without selling your home.
Common uses
- Home renovations that add value
- Consolidating higher-interest debt
- Funding education or a major life expense
- Investing in another property
How much you can take
Lenders usually let you borrow up to a set percentage of your home's value, leaving a cushion of equity in place. Your exact amount depends on the property, your credit, and the loan program.
The tradeoff
You are increasing your loan balance and likely your monthly payment, so a cash-out refinance works best when the money funds something that builds value or replaces more expensive debt.
Consolidating high-interest credit card debt into your mortgage can dramatically cut your total interest. We can show you the before-and-after.