What is a “cash-out” refinancing?
If you’ve been paying down your mortgage for a long time, or if property values have risen in your neighborhood, you probably have built up some equity in your home. You can get access to this money through a cash-out refinancing. For example, if your house is worth $200,000 and you still owe $100,000 on your mortgage, you could refinance your mortgage for, say, $150,000 and borrow $50,000 in cash from the equity in your home.
