Cash Out Refinance Can Hurt Your Credit Score

A cash out refinance is a type of mortgage in that the borrower removes a new loan for more money than the total amount on the present mortgage. This kind of loan is generally secured with a home, and the lender pays the closing costs, which is often just like the original mortgage. Additionally it may provide a lump sum payout that can be utilized for a variety of purposes, including investing in the stock market or paying down consumer debt.