When cash-out refinance loans can help
You’ve made a consistent investment in your home. You don’t have to sell your home for that investment to pay off. Instead, you can leverage your equity to unlock cash.
A cash-out refinance loan replaces your current mortgage with a new, larger loan that covers both the balance of your current mortgage and the lump sum of cash you want to borrow — based on how much home equity you have.
Equity builds through factors like rising home values and a decreasing mortgage balance. You might also have higher credit and income than when you qualified for your current mortgage, which could improve your terms.
With the right circumstances, you may even be able to lower your monthly mortgage payment, making the loan affordable now and into the future, while also accessing cash to cover current expenses.