What is a Cash Out Refinance?

A Cash-Out Refinance is when you use your home’s equity to refinance for more than the outstanding balance owed on your current mortgage. Then, after paying off your original mortgage, the amount left over is used to payoff your other debt or for other needs (e.g. remodel, tuition, your business, etc.)

Cash Out Refinance Features

• A cash-out refinance is a new first mortgage, not a second lien loan such as a Home Equity loan or HELOC
• In general, the more home equity you have, the more money your cashout refinance may provide
• Use the extra cash as you need–consolidate debt, remodel, tuition, even buy a second home

Note: By refinancing your existing loan, your total finance charges may be higher over the life of the loan

Mortgage Refinance Resources

Calculator – What will my refinancing costs be?
Calculator – Am I better off refinancing?
Refinance Process
Mortgage Refinance Educational Articles (independent 3rd party)