--- title: "Cash-Out Refinance: When Does It Make Sense?" description: 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. image: https://info.carringtonmortgage.com/hubfs/Jumbo%20Loan%20Article%20(2).jpg --- [Skip to content](https://info.carringtonmortgage.com/knowledge-base/cash-out-refinance-when-does-it-make-sense#main-content) ![bell icon](https://info.carringtonmortgage.com/hubfs/raw_assets/public/Templates/2022/svg/Alert-Notifications-Icon.svg) [![Carrington Mortgage Services](https://info.carringtonmortgage.com/hs-fs/hubfs/carrington_logo_final_2col_rgb.png?width=250&height=57&name=carrington_logo_final_2col_rgb.png)](https://www.carringtonmortgage.com) - [About Us](https://www.carringtonmortgage.com/our-mission) - [Careers](https://www.carringtonhc.com/careers) - [Investors](https://www.carringtonhc.com/investors) - [Contact Us](https://www.carringtonmortgage.com/contact-us) [Recent Transfer](https://www.carringtonmortgage.com/new-customers) [Customer Login](https://www.carringtonmortgage.com/login) MAKE HOME WORK Manage My Home arrow-down-anticon/submenu Manage My Mortgage arrow-down-anticon/submenu Learning Center MAKE HOME WORK Manage My Home arrow-down-anticon/submenu - I Am Ready to Start - [Buy a Home](https://www.carringtonmortgage.com/home-loans/buy-a-home/check-existing-customer) - [Refinance My Home](https://www.carringtonmortgage.com/home-loans/refinance-a-home/refinance-step) - What Loan Is Right For Me? 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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. Refinancing may provide benefits such as a tax deduction\* and a lower interest rate, and these things can end up saving you a lot of money in the long run. Make sure to speak to your lender about the costs of acquiring a new loan. If the cost of refinancing is too high, it may not be in your best interest to refinance at the moment. Here are some instances where a cash out refinance makes sense: - **Home Renovations** - If you need to do some home improvements, a cash-out refinance can help. Updating areas of your home, such as bathrooms or the kitchen could add more value to your home, which can be helpful if you are going to sell down the road. - **Consolidate Credit** - A cash-out refinance is a great option to consider if you have significant high interest credit debt. By refinancing you can pay down your credit card debt and have one monthly payment with a lower interest rate. Another benefit to paying down all that revolving debt is that your credit score may increase. - **Other Large Expenses** - Another common use for refinancing is to pay off student loans or help pay for college tuition for you or a family member. Unforeseen medical expenses or other unexpected expenses may arise in your life, and you could use the equity in your home to help your financial situation. Speak to your lender about interest rates and fees if you are thinking about refinancing. Under the right circumstances, refinancing can save you money, and getting cash out has a number of benefits. Check out [this](https://carringtonhomeloans.com/calculators.aspx) refinance calculator or click [here](https://carringtonhomeloans.com/Apply) if you are ready to get started with a refinance. *\*Carrington Mortgage Services, LLC is not offering legal or tax advice regarding tax benefits. Please contact your Accountant or Tax Consultant for information regarding deductions that may be available to you.* ## Related Articles [![holiday-cash-web](https://info.carringtonmortgage.com/hubfs/IMAGES/Newsletters/holiday-cash-web.jpg)](https://info.carringtonmortgage.com/knowledge-base/6-easy-steps-to-a-holiday-cash-out) [Home Loans](https://info.carringtonmortgage.com/knowledge-base/tag/home-loans) ### [6 Easy Steps to a Holiday Cash Out](https://info.carringtonmortgage.com/knowledge-base/6-easy-steps-to-a-holiday-cash-out) The holidays are almost here, but are you financially ready? If you have equity in your home, you may be able to convert it into cash. Many homeowners are taking... [Jordan](https://info.carringtonmortgage.com/knowledge-base/author/jordan) [Read More](https://info.carringtonmortgage.com/knowledge-base/6-easy-steps-to-a-holiday-cash-out) [![ThinkstockPhotos-905902444](https://info.carringtonmortgage.com/hubfs/ThinkstockPhotos-905902444.jpg)](https://info.carringtonmortgage.com/knowledge-base/what-to-expect-when-getting-cash-out) ### [What to Expect When Getting Cash Out](https://info.carringtonmortgage.com/knowledge-base/what-to-expect-when-getting-cash-out) If you find yourself wondering about cash-out refinances, you are not alone. Many people decide to get a cash-out refinance for reasons such as needing home... ![Jill](https://app.hubspot.com/settings/avatar/d41d8cd98f00b204e9800998ecf8427e) [Jill](https://info.carringtonmortgage.com/knowledge-base/author/jill) [Read More](https://info.carringtonmortgage.com/knowledge-base/what-to-expect-when-getting-cash-out) ## Mortgage & Lending Services - [Buy a Home](https://www.carringtonmortgage.com/home-loans/buy-a-home) - [Refinance a Home](https://www.carringtonmortgage.com/home-loans/refinance-a-home) - [Mortgage Calculators](https://www.carringtonmortgage.com/tools/calculators) - [The Loan Process](https://www.carringtonmortgage.com/tools/loan-process) - [Find an Expert](https://www.carringtonmortgage.com/find-an-expert) - [Home Builders](https://www.carringtonmortgage.com/Partner-with-Us/home-builders) - [Real Estate Agents](https://www.carringtonmortgage.com/Partner-with-Us/real-estate-agents) ## Terms - [Privacy Policy](https://www.carringtonmortgage.com/legal/privacy-policy) - [California Consumer Privacy Act Notice](https://www.carringtonmortgage.com/legal/ccpa-notice) - [State Licensing](https://www.carringtonmortgage.com/legal/state-licensing) - [Terms and Conditions](https://www.carringtonmortgage.com/legal/terms-conditions) - [Best Practices](https://www.carringtonmortgage.com/legal/best-practices) - [Fair Lending Statement / HMDA Notice](https://www.carringtonmortgage.com/legal/fair-lending-statement) - [Consumer Fraud Alert](https://www.carringtonmortgage.com/legal/consumer-fraud-alert) - [Equal Opportunities](https://www.carringtonmortgage.com/legal/Equal-opportunities) ## Manage Your Mortgage - [Payment Options](https://www.carringtonmortgage.com/payment-options) - [Mortgage Assistance](https://www.carringtonmortgage.com/mortgage-assistance) - [Disaster Assistance](https://www.carringtonmortgage.com/disaster-assistance) - [Scheduling Servicing Fee](https://www.carringtonmortgage.com/schedule-of-fees) - [Payoff Statements](https://www.carringtonmortgage.com/payoff-statements) ## Contact Us - Current Customers ## About Us - [Our Mission](https://www.carringtonmortgage.com/our-mission) - [Foundation](https://www.carringtoncf.org) - [Holding Company](https://www.carringtonhc.com) - [Accessibility](https://www.carringtonmortgage.com/accessibility) - [Press and Media](https://www.carringtonmortgage.com/pressandmedia) - [Contact us](https://www.carringtonmortgage.com/contact-us) ## Get the App [![](https://info.carringtonmortgage.com/hs-fs/hubfs/raw_assets/public/Templates/2022/svg/Carrington-mobile-apple.jpg?width=135&height=42&name=Carrington-mobile-apple.jpg)](https://apps.apple.com/us/app/carrington-mobile/id1673471360) [![](https://info.carringtonmortgage.com/hs-fs/hubfs/raw_assets/public/Templates/2022/svg/White-Google-1.jpg?width=135&height=42&name=White-Google-1.jpg)](https://play.google.com/store/apps/details?id=com.carringtonms.CMSMobile2&pli=1) [Icon-Facebook](https://www.facebook.com/CarringtonHomeLoans/) [Icon-Twitter](https://twitter.com/CarringtonMS) [Icon-Linkedin](https://www.linkedin.com/company/carrington-mortgage-services-llc) [Icon-Instagram](https://www.instagram.com/carringtonmortgage/) Icon-EHO Consumer Access NMLS ID #2600 | Copyright 2026 Carrington Mortgage Services, LLC. 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