What is a cash out refinance?

[Zobiri Mehdi]

Hello everyone. 

As I mentioned in the post above , can someone explain to me what a cash out refinance is, and also how can I use to it to refinance a HELOC ?

If you can give me a couple of examples shored up by some numbers it would be great .

Thank you .

[Steve DellaPelle]

Property Value = $200,000

Outstanding Loan = $100,000

I want cash now so I do a cash-out refinance up to 85% LTV.

85% of $200,000 = $170,000

I now have a loan of $170,000...I pay off my old loan of $100,000 and now I have $70,000 left in my hand.

I hope this helps!