Ways to Cash In with a Cash-Out Refinance
Unlike a mortgage refinance, where homeowners replace their current mortgage with a new mortgage for the same amount, a cash-out refinance allows borrowers to tap their home equity and refinance for more than their existing loan balance. This ability to refinance and pull cash out simultaneously is an especially popular option during periods of rising home values.
Homeowners can use their extra cash for any purpose. Frequent uses include home improvement projects, debt consolidation, paying for school or college tuition, financing life events and major purchases, like a wedding or a vacation, providing seed money for a business start-up or bolstering an investment or emergency fund. Again, it’s your money to use and put to work as you like.