Cash Out Refinance Can Hurt Your Credit Score

A cash out refinance is a kind of mortgage in which the borrower removes a brand new loan for additional money than the total amount on the existing mortgage. This type of loan is generally secured with a home, and the lender pays the closing costs, which may be similar to the original mortgage. Additionally, it may give a lump sum payout that may be used for a number of purposes, including investing in the stock market or paying down consumer debt.