A cash-out refinance occurs when investors take out a new loan on an existing property to extract equity from that property. Cash-out refinances happen when investors refinance for more than the current mortgage and receive the difference in cash. Cash-out refinances require at least 30 percent to 40 percent equity and have rates around 3.25 percent.
If you’re looking for a reputable lender that offers a cash-out refinance, check out Visio Lending. It offers competitive rates for prime borrowers and can typically fund the refinance in as little as three to four weeks. It only takes a few minutes to get prequalified online.