Cash-out refinance
If you’ve built up significant equity in your home over the years and could use funds for home improvements or to improve your financial situation, a cash-out refinance may make sense for you.
With a cash-out refinance, you’re refinancing your mortgage for more than you currently owe. In return, you’re getting a portion of your equity back in cash. Cash-out refinances generally have a slightly higher mortgage rate because you are borrowing more money, which is an added risk to the lender making the loan.
