cash out refinance
As borrowers build up equity in their homes they sometimes want to borrow against that increased equity. They may need the cash to pay for things like their children’s college, home remodeling, or health expenses. A cash out refinance increases the loan amount while giving the borrower cash to do other things.
A cash out refinance is not limited to any type of loan program. If the value of the property is greater than the principle amount left on the loan, then cash may be obtained for the approximate difference. If the new loan goes above 80% of the home value you will be required to purchase PMI or principle mortgage insurance for the life of the loan.