Almost anything.
A cash-out refinance allows you to convert a portion of your home’s equity into cash. Once the loan closes, the funds are yours to use however you choose.
Some of the most common reasons homeowners choose a cash-out refinance include:
- Home renovations and remodeling
- Paying off high-interest credit card debt
- Consolidating personal loans
- Purchasing another property or investment
- Covering college tuition or education expenses
- Starting or expanding a business
- Building an emergency savings fund
- Major purchases or life events
The only real limitation is that you must qualify for the new mortgage based on your income, credit, and available home equity. Different loan programs also have maximum loan-to-value (LTV) limits that determine how much equity you can access.
Before refinancing, it’s important to consider whether using home equity makes financial sense. You’re replacing your existing mortgage with a new loan, so we’ll compare your current interest rate, closing costs, monthly payment, and long-term goals to determine whether a cash-out refinance is the right strategy for your situation.
To learn more about refinances, visit the Refinance page.