Cash Out Refinance Can Hurt Your Credit Score

A cash out refinance is a type of mortgage in that the borrower takes out a fresh loan for more money than the balance on the current mortgage. This sort of loan is generally secured by a home, and the lender pays the closing costs, which may be just like the original mortgage. It may also provide a lump sum payout that may be used for a variety of purposes, including buying the stock market or paying down consumer debt.