cash out

In the second quarter, borrowers doing cash-out refinancings took on a rate 1.45 percentage points higher than their in-place mortgage and raised their monthly payment by $590 in order to withdraw $94,000 of cash on average.

The interest payments on a cash-out refinancing are deductible if the money is used for home improvements, which is also the case for interest on a home-equity line of credit.

Corrections & Amplifications The interest payments on a cash-out refinancing are deductible if the money is used for home improvements.

The plaintiffs’ lawyers would also be paid from the eventual sale or cash-out; they said they would ask for no more than 39 percent of the amount received by the class.

Others have borrowed against their homes to put cash in their pockets, either with a reverse mortgage, home equity loan or cash-out refinance.