December 19, 2014 | by Katie Claflin. Homeowners who have built a substantial amount of equity in their homes may be eligible to refinance their mortgage loan and cash out some of their equity.
This is known as a cash-out refinance. But just because you can doesn't mean you should. How Cash-Out Refinances Work.
Cash-out refinances are similar to other refinances, except the homeowner actually borrows more than than they owe on their original loan. For example, say your home is worth 300,000, and you owe 100,000 on your mortgage. If you get a new loan for 150,000, you can pull out 50,000 of your homes equity in cash.
Click here to read more about cash-out refinances on Bankrate.
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Total repayments 10made up of an establishment fee of 800 and interest of 2,400. The repayment amount is based on the variables selected, is subject to our assessment and suitability, and other important terms and conditions apply.
How much do you need. Your total repayment will be 654. 50. The cost is made up of an 15 establishment fee and a 4 monthly fee. The repayment amount is based on the variables selected, is subject to our assessment and suitability, and other important terms and conditions apply.