💡 Option 1 — Cash-Out Refinance Meaning: Replace your current mortgage with a larger loan and take the difference in cash. Bankrate Often lower interest rate than a second mortgage because it replaces your first mortgage. Rocket Mortgage Can consolidate debt (e.g., high-interest credit cards) into one loan. Bankrate If you refinance to a lower rate, you can reduce monthly payments while getting cash. Sunflower Bank When it might make sense: ✔ You currently have a higher interest mortgage ...