I am not a huge fan of cash out refinances because they considerable risk and I have witnessed too many customers struggle with paying off mortgage debt after the cash out refinance.; however, there are some scenarios where a cash out refinance can be beneficial. They are:
- To improve the property with energy efficient improvements or to increase the square footage of the home.
- To purchase another property with the cash from the refinance
- To use the cash to pay off other debt - as long as there is a plan in place not to accrue any more debt.