![](https://info.carringtonmortgage.com/hubfs/AdobeStock_481566373_edit%20%281%29.jpg)
Carrington Mortgage Services, LLC Learning Center
Posts about:
Refinance
![](https://info.carringtonmortgage.com/hubfs/AdobeStock_481566373_edit%20%281%29.jpg)
![](https://info.carringtonmortgage.com/hubfs/Servicing%20Newsletter/The%20Basics%20Cash-Out%20Refinances%20vs.%20Home%20Equity%20Loans.jpg)
The Basics: Cash-Out Refinances vs. Home Equity Loans
As a homeowner, you have two powerful tools thanks to all the equity you may have in your property: cash-out refinances and home equity loans. Understanding the nuances of each can empower you to make informed financial decisions and maximize the potential of your home's equity.
Home equity is a homeowner's interest in their property, representing the portion of the home's value that they own outright. It's calculated by subtracting the outstanding mortgage balance from the home's current market value. As you repay your mortgage or as your home appreciates, your equity grows, becoming a valuable resource for financing major expenses, investments or even debt consolidation.
![](https://info.carringtonmortgage.com/hubfs/IMAGES/Newsletters/CASH-OUT%20REFINANCE%20WHEN%20DOES%20IT%20MAKE%20SENSE%3F.jpg)
Cash-Out Refinance: When Does It Make Sense?
A cash-out refinance allows you to access the equity in your home for extra cash if you have considerable equity in the home. For example, if your home is worth $250,000 and you still owe $150,000, you could take out a new loan for $180,000, pay off the existing loan amount and use the remaining $30,000 to consolidate credit card debt.
![](https://info.carringtonmortgage.com/hubfs/Blog-03-Image.jpg)
Not All Debts are Considered Equal
Not all debt is created equal when it comes to looking at the money you owe. There is absolutely good debt and bad debt, and the difference matters. Check out our lists below for some examples of good vs. bad debt.
![Is a Cash-Out Refinance Right for You?](https://info.carringtonmortgage.com/hubfs/shutterstock_1038717511.jpg)
Is a Cash-Out Refinance Right for You?
With the lowest mortgage rates in recent memory, you might be considering refinancing your mortgage and potentially getting cash out. Whether you pay off debts with a higher interest rate (student loans or credit cards, for example), make some much-needed home improvements, or reduce your monthly payment, refinancing may benefit your family’s financial situation.
![](https://info.carringtonmortgage.com/hubfs/IMAGES/imagesCHL/Make%20Sure%20You%20Don%E2%80%99t%20Have%20Mortgage%20Document%20Errors%20%E2%80%93%20Or%20Else!.jpeg)
The Importance of Avoiding Mortgage Document Errors
You wouldn’t think it, but the slightest mortgage document errors could spell disaster to your closing process. That’s why it’s ultra-important to ensure that everything that is printed on your mortgage documentation is completely accurate, right down to the crossing of every T and the hyphenation of your name (if that applies to you).
![](https://info.carringtonmortgage.com/hubfs/IMAGES/Misc./Understanding%20Escrow.jpeg)
Are You the Best Candidate for a Home Loan?
![](https://info.carringtonmortgage.com/hubfs/IMAGES/imagesCHL/ThinkstockPhotos-840610244.jpeg)
What Your Mortgage Lender Needs to Know
So many people want to know so many things about you during the home buying process – and it may seem at times like it’s never going to end. And like they couldn’t possibly need to know so many things. And hey, isn’t that last question intrusive!? It can be hard to understand what your mortgage lender needs to know.
![](https://info.carringtonmortgage.com/hubfs/IMAGES/Misc./ThinkstockPhotos-962706650.jpeg)
How to Reduce Closing Costs
![](https://info.carringtonmortgage.com/hubfs/CHL%20Knowledge%20Base/ThinkstockPhotos-905902444.jpeg)