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Did You Know...
A cashout refi might work for you
A cashout refinance happens when the homeowner refinances the mortgage for more than the amount owed. The borrower pockets the difference.
Cashout refinances were popular during the real estate boom of the early 2000s. Then they almost disappeared after the housing bust wiped out billions of dollars in home equity. Now that home values have climbed near their pre-recession peaks in many markets, cashout refinances have returned.
The other way to extract cash from equity is through a home-equity loan or line of credit. When you want to spend the money on something short-term, it's probably better to get the money through a HELOC. But if the purpose of the money is long-term, then a cash-out refi might make more sense.
