Cash-out Refinancing versus a Home Equity Product

Cash-out Refinancing Some homeowners choose to refinance for more than the value of their present mortgage if they have a significant amount of equity tied up in their home. This type of refinancing is referred to as cash-out refinancing. For example, say you paid $225,000 for your home and your mortgage is $200,000. Your house‘s current worth, due to appreciation, is $275,000. By choosing cash-out refinancing, you can refinance your loan, for example, for $240,000 [...]