Understanding How a Cash-Out Refinance Impacts Your Interest Rate- A Comprehensive Guide

Does a cash-out refinance change your interest rate?

A cash-out refinance is a popular financial strategy used by homeowners to access the equity they have built up in their property. This process involves refinancing your existing mortgage with a new loan that is larger than your current mortgage balance, allowing you to take out the difference in cash. While this can be a great way to fund home improvements, pay off high-interest debt, or finance other expenses, many homeowners wonder if a cash-out refinance will change their interest rate. In this article, we will explore how a cash-out refinance can impact your interest rate and what factors to consider before deciding to proceed with this option.