Cash Out Refinance
In simple terms, a cash-out refinance replaces your current mortgage with another loan that:
- Pays off your current mortgage balance
- Uses the equity in your home to provide additional funds for other purposes
- Debt consolidation: Use the cash to pay off high interest credit card debt or student loans.
- Home Improvements: Add value to your home and make your home more appealing to buyers in the future.
- Money in the Bank: Emergency fund offers stability and peace of mind, so you sleep better at night.
- Tax deductions: The mortgage interest deduction may be available on a cash-out refinance if the money is used to buy, build or substantially improve your home.