Borrowing against the equity in your home with a cash-out refinance can put extra money in your account when you need it most. But how do you know if it’s the right move for you?
A cash-out refinance involves taking out a new mortgage loan and using it to pay off your old one. You borrow more money than you owe on your home and can use the excess to cover big expenses — like a home renovation or to consolidate high-interest debt.
Refinancing can be a strategic way to free up cash. And knowing the right questions to ask will get you closer to deciding if it’s the right approach for you.