A cash-out mortgage refinance allows you to replace your current home loan with a larger one and pocket the difference in cash by tapping into your home equity. This lump sum can be used for things like home renovations, debt consolidation, or other major expenses. Benefits include access to more funds than typical personal loans or credit cards, potentially lower interest rates, and the simplicity of one monthly payment. Using the cash to pay off high-interest debt may even improve your credit score, and in some cases, the mortgage interest may be tax-deductible. However, it’s important to remember that this will increase both your mortgage balance and monthly payment.