Why do you get cash back when you refinance?
A cash-out refinance is a type of mortgage refinance that takes advantage of the equity you've built over time and gives you cash in exchange for taking on a larger mortgage. In other words, with a cash-out refinance, you borrow more than you owe on your mortgage and pocket the difference.
Do you lose money when you refinance?
The goal of the refinancing process is to take out a new loan to replace your mortgage in order to reduce rates and build equity faster. However, refinancing can cause you to lose money in the long run if you are not careful and the process itself can impact your home's equity overall.
Does refinancing set you back?
Refinancing doesn't reset the repayment term of your loan, but it does replace your current loan with a new loan. You may be able to choose from different offers for your new loan depending on your goals, including a longer or shorter repayment term.