Get the money you need by cash-out refinancing
Alternatives to cash-out refinancing
Homeowners considering a cash out refinance should compare the costs of all available options:
- Rate and term refinance plus a home equity loan (if terms of existing loan can be bettered)
- Adding just a home equity loan (if existing loan cannot be improved)
- Taking a personal loan (if credit rating is good and costs are low)
- Consolidating debt with a debt management plan or balance transfer card
Cash out refinancing is a valid strategy for financing anything from college tuition to debt consolidation to home improvements. However, homeowners should run the numbers and consider the total cost of borrowing — lender fees, interest rates and third party costs — before committing.