A cash out refinance loan allows a borrower to extract equity from their home. This is typically a great alternative to a home equity loan. Often a borrower is able to reduce their interest rate and receive cash!
A cash-out refinance is when the new loan amount consists of the initial mortgage balance plus the additional amount taken in cash. Cash-out refinances are a popular way for borrowers to access the equity in their homes to pay down consumer debt or make additional purchases.