What is Cash-Out Refinancing

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What is Cash-Out Refinancing?

Most simply, cash-out refinancing is liquidating a home's equity after a mortgage refinance.

Although this is not always the goal of refinancing (more often, it's to reduce interest rates or to reduce monthly payments), getting cash is sometimes an option that mortgage borrowers pursue.

It is recommended that borrowers consider the differences between refinancing and second mortgages, especially if doing so to get cash. If the original first mortgage has a lower interest rate than the prevailing interest rates, it may make sense to get a second mortgage to get cash instead of refinancing entirely out of the first [old] mortgage.

Next: Would you like to experiment with a refinance calculator or would you like to be matched with up to five mortgage refinance lenders?

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