Loan types
Cash-out refinance when you want a lump sum at closing.
A cash-out refinance pays off the current mortgage and gives you a new, larger one. The difference, after costs, comes to you as cash.
Who it is for
- Owners with equity who want one new first mortgage
- People consolidating higher-interest debt into the house, after looking at the real cost
- Owners funding a renovation, a reserve, or another planned use
How it usually works
- You are borrowing against the house. The new loan is secured by the property, and the term often starts over.
- Cash-out limits are tighter than a standard refinance. How much you can take depends on the value, the occupancy, and the program.
- A home equity loan or HELOC can be a better fit when you want to leave the first mortgage alone. We will compare those before you choose.
What to have ready
- Current mortgage statement
- A purpose for the cash
- Income and asset documents
- An estimate of the home's value
Guidelines change, and lenders add their own rules. The description above is a starting point, not a quote and not an approval.