Cash-Out Mortgage Refinance Loan
A cash-out mortgage refinance loan is a new loan that is larger than the remaining balance on your current mortgage. When you refinance with a cash-out mortgage, you get cash back from the equity in your home, which can be used for anything from home improvements to college tuition.
For example, if your home is worth $250,000 and you owe $150,000 on the mortgage, then you have $100,000 of equity in your home. If you need $50,000 for home repairs, you could refinance your mortgage so that you owe $200,000. Your lender would then give you $50,000 at closing.