While it is technically possible to use a cash-out refinance to buy a new home, it may not be the best financial decision for most people. Cash-out refinances are typically used to access the equity in a home for things like home improvements, paying off high-interest debt, or other major expenses.
If you are looking to buy a new home, it may be more appropriate to sell your current home and use the equity you’ve built up as a down payment on your new home. This approach can help you avoid the higher interest rates and fees associated with a cash-out refinance, and it can also help you start fresh with a new mortgage and a lower monthly payment.
Of course, every situation is unique, and it’s important to talk to a financial advisor or mortgage professional to fully understand your options and determine the best course of action based on your individual circumstances.
