What are the Different Ways to Refinance My Mortgage?

Mortgage refinancing usually follows one of two routes:

Straight Refinance

People who seek this type of refinance generally do so for the purpose of obtaining a lower rate or better term than the existing loan. With this type of mortgage refinancing, no extra money is borrowed during the creation of a new loan. It pays off the existing loan and you then receive a new mortgage.

Cash Out Refinance

This type of refinance allows homeowners to tap into their home equity. With a Cash Out Refinance, you receive a new loan worth more than what you currently owe on your existing mortgage, and then you pocket the additional cash. You can use the extra cash for any reason you want: to pay bills, fund home improvements, or even pay for a child’s college education.