Secret Cash-Out Refinance Turns Homes Into Dream Havens

Potential Costs and Considerations

While a cash-out refinance can be a powerful financial tool, it's important to consider the costs involved. Closing costs can range from 2% to 5% of the loan amount, which can add up to a significant sum. Additionally, increasing your mortgage balance means you'll be paying interest on a larger amount, potentially extending the time it takes to pay off your home⁴.