Personal mortgage guidance, built around your goals

REFINANCE AND RENOVATION

Cash-out refinance and debt goals

A cash-out refinance may access home equity, but it adds debt secured by the home.

A useful starting pointEvery mortgage has its own terms, costs, and qualification requirements. Use this overview to prepare questions and compare written loan estimates.

THE OVERVIEW

How this option works

A cash-out refinance replaces the current mortgage with a larger loan and provides eligible proceeds after paying off the existing mortgage and costs. Some homeowners consider using proceeds for debt consolidation or planned expenses.

Using home equity to pay other debt changes unsecured or separately secured balances into debt tied to the home. The new payment, interest over time, closing costs, and equity impact should be carefully compared with alternatives.

MAKE THE CONVERSATION COUNT

Questions to ask

Ask for the details in writing and compare the total cost, payment, and terms for your own scenario.

  • How much would the new balance and monthly payment be?
  • What are the total costs and interest over the time you expect to keep the loan?
  • What non-mortgage alternatives should be considered before using home equity?
General information only. Program rules, rates, and lender availability can change. This page is not an offer, approval, or personal recommendation. Review current written terms with a qualified mortgage professional.

Official information: CFPB: Debt consolidation considerations ↗