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The loan amount is based. s home that secures the loan.” The interest on a home-equity loan used to consolidate debts or pay for a child’s college expenses is not tax-deductible. Home-Equity Loans.

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what is cashout refinance Cash-Out Refinance Explanation for a Divorce | LegalZoom. – What is Cash-Out Refinancing? Cash-out refinancing occurs when you replace your initial mortgage with a new one in excess of the first mortgage’s principal balance. For example, if you owe $100,000 on your first mortgage and take a new mortgage in the amount of $150,000, the new lender pays off your existing $100,000 mortgage and writes you a check for $50,000.