Mortgage Term of the Day: Cash-Out Refinance

A refinancing option that allows the borrower to take equity out of their home in the form of cash. Instead of refinancing to lower your rate, you take cash out of your home to use as you wish. For example, if your home is worth $450,000, you still owe $200,000, and you have an interest rate of 5%. You could refinance your home loan by not only taking advantage of a lower rate, but also by taking out money on the value of your home.

For any questions about a cash-out refinance, contact United Home Loans below.