Home Improvements

• The most popular reason homeowners need to get cash out refinances is to pay for the cost of home repairs, remodeling or improvements. Home repairs are typically necessary repairs, such as replacing or repairing the roof rather than cosmetic ones. Remodeling may include adding onto the existing structure, such as adding a room. Improvements to the home can range from finishing an unfinished basement or attic to replacing floor coverings.
  
  

Future Investments

• Since the equity in a property is cash, many homeowners need to access a lump sum of cash to make future investments. One of the major future investments cash out refinance homeowners use the cash for is to fund retirement accounts.
  
  

College Tuition And College Expenses

• The cost of a college education seems to continuously increase and the need for a college educations also seems to be increasing as a requirement for many careers. Many parents need a cash out refinance to gain access to the money they need to pay for college tuition and other college expenses for one or more of their children.
  
  

Purchasing Another Property

• For homeowners who need money to buy a new property while still living in their existing property, they use a cash out refinance to tap into the funds they need. Some use the equity funds for a cash down payment on the purchase of another property. Some use it for the down payment money and to cover the closing costs and fees.
  
  

Consolidating Debt

• When homeowners build up debt, such as consumer credit-card debt that has high interest rates, homeowners need to access a source of money to pay down and pay off their debt. Since cash out refinance mortgage interest rates tend to be lower than high-interest-rate debts, such as credit cards or auto loans, many homeowners use the money from the equity in their home to reduce their total amount of debt cost.