What Is Cash Out Refinancing

A cash-out refinance may help you reduce your monthly bills. Using the equity within your home to consolidate debt could save you a bundle of money. Many homeowners will.

Homeowners look to cash-out refinancing to turn some of their home equity into cash. It works by refinancing your mortgage at a higher amount. The new loan pays off your old loan, and that extra money (from refinancing at a higher amount) is distributed as cash.