The Best (and Worst) Reasons to Take a Cash-Out Refinance

The Best (and Worst) Reasons to Take a Cash-Out Refinance

As the name suggests, a cash-out refinance loan allows you to take cash out of your home. Cash-out refinance loans differ from home equity loans or home equity lines of credit (HELOCs). With a cash-out refinance loan, you take out a new mortgage to pay off your old home loan and get cash back by borrowing more than you currently owe.