Pros and Cons of a Cash Out Refinance
Triangle Flats Property Management - Tuesday, January 9, 2018
BY DEBORAH KEARNS
If you’ve built up a large amount of equity in your home and want to use it to meet some of your financial goals, a cash-out refinance might be an option. But consider the decision carefully; in most cases, you’ll be using your home as collateral and you could lose it if the new loan saddles you with unaffordable payments.
You can use the money from a cash-out refinance in a variety of ways, including to fund an addition to your home, consolidate high-interest debt, pay off large medical bills, or save toward your child’s college
tuition. You might even be able to get a lower interest rate if you originally bought your home when mortgage rates were much higher.