Cash-Out Refinance
Refinancing for more than you currently owe, and taking the difference in cash.
In plain English
A cash-out refinance replaces your mortgage with a larger loan, letting you pocket the difference between the new loan amount and your old balance — commonly used to fund renovations or consolidate higher-interest debt.
Because it increases your loan balance, a cash-out refinance also increases your monthly payment and reduces your equity cushion — worth weighing carefully against other options like a HELOC.
Where you'll run into it
Guides and tools on TheBuyingPath that cover cash-out refinance in context.
Related terms
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