cash out refinance10’000 Hours/Getty Images

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.
Coming soon: the Personal Finance Insider email. Sign up here »

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

NOW WATCH: What makes ‘Parasite’ so shocking is the twist that happens in a 10-minute sequence

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 fromWells Fargo’s personal loans offer low interest rates, but they may be tough to get if you’re not a current customerHuntington Bank offers a variety of bank accounts for residents of 7 US states

Read more: feedproxy.google.com