Matthew is AVP Mortgage Lending at Skyla Federal Credit Union who believes that a community is strongest when there is diversity, equality, and inclusion. He is skilled in sales, underwriting, and mortgage lending.
When completing a cash-out refinance, you're not only taking on new debt, but you're also changing the rate on your existing mortgage balance. If the refinanced interest rate is higher, this could result in you paying substantially more interest than you would otherwise.
Both options help you borrow from your home equity, but one may be a better choice than the other.