What you are describing is indeed called a Cash Out Refinance. Depending on the terms of your current mortgage a cash out refinance does not necessarily mean you will have a higher interest rate than your current loan and it also does not mean the rate would necessarily be higher than a simple rate/term refinance. Typically, a cash out refinance may be subject to a slight Loan to Value % decrease.
As an example. A bank may offer 80% LTV rate/term refinances but reduce cash out refinances to 70-75%.
Feel free to reach out anytime.
All the best,
refinance can be re-structuring the loan. it can be lower rate, longer term, lower term, or lower payment which depend on what you want. OR you just want withdraw equity base on market value. So, this specific focus is cash out refinance.
Refinance is more general term. And Cash Out Ref is more specific.
Anyone can adjust what i say if that is in-corrected.
@Melonie Wong You are taking out equity from your home by cashing out so cash out refinance. If you are financing just current loan amount its rate and term. Interest rate will be different in both financing . Cash out has higher interest rate compare to rate and term finance.