what is a cash out refinance 
a cash out refinance is a mortgage refinancing option that lets you convert home equity into cash a new mortgage is taken out for more than your previous mortgage balance and the difference is paid to you in cash in the real estate world refinancing in general is a popular process for replacing an existing mortgage with a new one that typically extends terms to the borrower that are more favorable by refinancing a mortgage you may be able to decrease your monthly mortgage payments negotiate a lower interest rate renegotiate the periodic loan terms remove or add borrowers from the loan obligation and in the case of a cash out refinance access cash from the equity in your home investopedia madelyn goodnight