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- With a cash-out refinance, you take out a new home loan for more than the amount you still owe on your home, and you receive part of your home's gained equity in cash.
- Many lenders won't let you take out more than 80% of your home's value in cash.
- Like a home equity loan or HELOC, a cash-out refinance lets you tap into the equity of your home — but it usually comes with a lower rate than a home equity loan or HELOC.
- You should consider additional costs before using a cash-out refinance, including closing fees and private mortgage insurance.
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If you need access to cash to reach big financial goals, there are plenty of ways to access money, such as using a credit card or taking out a personal loan.
And if your home's value has increased since you bought it, you could also access money through a cash-out refinance.
See the rest of the story at Business Insider
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See Also:
- The average personal loan interest rate is 9.63%, but your rate could vary based on your credit score, where you live, and who you're borrowing from
- Wells Fargo's personal loans offer low interest rates, but they may be tough to get if you're not a current customer
- Huntington Bank offers a variety of bank accounts for residents of 7 US states
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