 TITLE: What Can You Use a Cash-Out Refinance For? CONTENT: A cash-out refinance replaces your existing mortgage with a new home loan that exceeds the amount you owe on your house. You then can tap into the difference between the value of your home and the amount you owe as a cash payout. You can spend the cash on debt consolidation, home improvements and a variety of other needs.\nUsually, a lender restricts the amount you can borrow through a cash-out refinance to about 80% of the equity you've built in your home. So, if your home is valued at $250,000 and you still owe $150,000, the maximum cash-out finance loan amount might be $200,000, with $50,000 of it going to you in cash.\nA lender hands you the money from a cash-out refinance, which comes with a fixed interest rate or adjustable interest rate, in a lump sum. That sum is left over after the initial mortgage is paid off and closing costs are covered.\nHere are some of the typical criteria to qualify for a cash-out refinance:\n*   A minimum credit score, which could range from 600 to 640. In some cases, though, you might be able to obtain a cash-out refinance loan with a credit score as low as 580. Keep in mind that credit score requirements vary from lender to lender.\n*   Debt-to-income ratio of less than 50%. How do you calculate this ratio? Divide your monthly debts and bills by your monthly income.\n*   Sufficient amount of home equity (normally at least 20%).\n*   You must have owned your own for at least a certain length of time. END