Cash-out Refinance

Some mortgages allow a “cash-out” refinance, so you can turn some of your home equity into cash. The money you take out as cash will be added to the total balance of your mortgage loan. This can reduce the amount of equity in your home, add to the length of time it will take you to pay off your mortgage, and ultimately, require you to pay more total interest. While there are situations in which this option makes sense it’s something that you’ll want to consider carefully before moving forward.