Understand when a refinance is about lowering payment, and when tapping equity may support renovations or debt consolidation.
A rate-and-term refinance replaces your existing mortgage with a new loan, usually to lower the rate, change the term, or both, without taking cash out above allowable closing costs.
A cash-out refinance lets you borrow against home equity and receive funds at closing. Borrowers often use those proceeds for renovations, education costs, or consolidating higher-interest debt.
Both options require underwriting, appraisal considerations, and a clear break-even analysis. Closing costs, remaining loan term, and how long you plan to stay in the home all matter.
If you are weighing refinance options, connect with a Clear Mortgage loan officer for scenario comparisons tailored to your goals.