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Mortgage Glossary

Cash-Out Refinance

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A cash-out refinance replaces your mortgage with a larger loan and gives you the difference in cash, tapping your home equity.

What Cash-Out Refinance means

You can use the proceeds for renovations, debt payoff, or investment. Most Florida lenders require you to keep at least 20% equity after the cash-out. The new loan resets your rate and term.

Florida example

A homeowner with a $250,000 balance on a $450,000 home refinances into a $360,000 loan, pocketing about $110,000 while retaining 20% equity. Rates on cash-out refinances run slightly higher than rate-and-term refinances.

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