The dollars (and sense!) of a cash-out refinance
The booming housing market of the last several years has made a huge number of Americans “equity rich” (owing no more than 50% of the home’s market value). And since much of this equity gain came from rising home prices, even if you have not made extra payments or home improvements, your home might be worth considerably more than you think.
A cash-out refinance provides a way to take advantage of the untapped wealth that equity represents. This allows you to stay in your home while getting cash out to make home improvements, cover tuition, or pay off high-interest debt that may be negatively impacting your finances.
But how much can you borrow? That depends on a number of factors.
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