What’s the difference between a “typical” refinance and a cash-out refinance?
When you think of a “typical” refinance, you’re probably thinking of a rate and term refinance. In a rate and term refi, you refinance your loan in order to get (you guessed it) a new rate and term. In a cash-out refinance, you leverage your existing home equity for cash. You’ll repay the amount you “cash out” over time through a new rate and term on your new mortgage.