Tiffinie Larkins | Mortgage Broker

License# 2169349

850-900-3081

Cash Out Mortgage Refinancing

Everyone's financial situation is unique, and we’re here to find the right mortgage solution for you. With expert advice and access to competitive rates, we make the process smooth and stress-free.

What Is Cash-Out Mortgage Refinancing?

A cash-out refinance is a type of mortgage refinancing where your current home loan is replaced with a new loan that has a higher balance—often with better terms. The difference between the two loan amounts is given to the homeowner in cash, which can be used for various financial needs such as home improvements, debt consolidation, or other expenses.

This differs from a traditional mortgage refinance, which simply replaces an existing loan with a new one—typically at a lower interest rate—without cashing out any home equity.

A cash-out refinance is also different from a home equity line of credit (HELOC), which functions as a second mortgage. With a HELOC, homeowners can borrow against their equity as needed and repay the funds on a flexible schedule. Unlike traditional mortgages, HELOC interest rates fluctuate with the prime rate, whereas a cash-out refinance typically has a fixed rate.