This is a type of refinance that gives you the opportunity to use the equity you've built on your current home and turn it into cash by taking on a new mortgage. You will pay off your existing mortgage if you have one and the remaining equity leftover you can use for home improvements, future cash, or to consolidate debt. If your home increases in value as well as you are paying down your mortgage principal, it may be a good time to consider a cash-out refinance. Similar to a purchase, the lender will require you to qualify with a certain credit score, debt-to-income ratio, and will require an appraisal to be ordered to confirm the new value of the home. Finally, cash-out refinance mortgage rates in Florida
are slightly higher than rate/term or purchase mortgage rates.