Cash-Out Refinance

A cash-out refinance is a financial process where you replace your existing mortgage with a new one for a larger amount than what you owe. You receive the difference in cash, which you can use for various purposes, like home improvements, debt consolidation, or other expenses. Essentially, you tap into your home’s equity—the value of your home minus what you owe. While it can provide immediate funds, you’ll be taking on a bigger loan, so it’s important to consider the costs and long-term implications carefully.