cash out

It is looking like a cash-out refinance may be our only option.

A cash-out refinance, at a 6.5% rate, would add another $700 to $800 per month to your mortgage.

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.