 TITLE: Is a Cash-Out Refinance a Good Idea? CONTENT: Cash-Out Refinance Alternatives\n-------------------------------\nIf you're looking to borrow money but don't want to (or can't) use a cash-out refi, consider some of the alternatives:\n*   **Personal loan**: You may be able to get an unsecured personal loan without using any of your assets as collateral. If you have excellent credit, some lenders may even offer rates similar to what you could find with a mortgage. But even if you can't qualify for the best rates, it may be worth paying a slightly higher rate for an unsecured loan.\n*   **Home equity loan or home equity line of credit (HELOC)**: With these loans, you use your home as collateral to get a loan or line of credit without having to replace your current mortgage. Like a cash-out refinance, the terms of these second mortgages also depend on the value of your home and how much equity you have, along with your creditworthiness. These options may have fewer closing costs, and they could be a better option than refinancing if you can't qualify for a lower rate on your mortgage.\n*   **Auto title loan**: Rather than using your home, you may be able to use a vehicle as collateral to get an auto title loan. However, these are generally a poor option as auto title loans can be expensive and you risk losing your vehicle. Some states don't even allow this type of loan.\n*   **Balance transfer credit card**: If you're looking into a cash-out refi as a way to consolidate and refinance your credit card debt, also consider a balance transfer credit card. While you might not be able to get a card credit limit as high as your cash-out amount, balance transfer cards may offer promotional 0% APR rates on transferred balances.\nThere are also other strategies you can use to get out of debt without taking out a new loan. For example, you could look for ways to increase your income and cut expenses and then put extra money toward your lowest-balance debts first (the debt snowball strategy). Or, with the avalanche strategy, you start with the debt that has the highest APR. END