How a Cash-Out Refinance Works

A cash-out refinance lets you replace your current mortgage with a new one while taking out a portion of your home’s equity in cash. It’s a simple way to unlock funds you can use for life improvements, financial strategy, or major purchases — often at interest rates much lower than credit cards or personal loans. With home values holding strong and equity at high levels, many homeowners are choosing to use a cash-out refinance as a tool to improve their financial health and quality of life.