What is a cash-out refinance?
The Bankrate.com financial term of the day is: "cash-out refinance."
When you trade in your mortgage for a fancy new model, maybe with a better interest rate, you may want to borrow a little something extra. In a cash-out refinance, the new loan amount is greater than what you need to pay off the old loan. You take the difference in cash that can be used to renovate your kitchen, put your son through a year of college or pay a big medical bill.
A cash-out refinance allows you to shake some money out of the value of that piggy bank you call your home.
To shop for the perfect home loan, visit the Mortgage section at Bankrate.com.