A cash-out refinance will tap into your earned home equity by refinancing your current mortgage, and customizing a new loan for more than is currently owed on your home.
It is important to note that unlike home equity loans, HELOC’s and reverse mortgages, this program is not a second mortgage on your home. It is simply refinancing you current mortgage.
You may take a lump sum payout with the freedom to use the money as you please. You may wish to pay off other debts, renovate your home, take a trip, or make other promising investments.