A cash-out refinance loan replaces your current mortgage with a new loan that’s higher than the balance you owed before. The idea is you pay off your existing mortgage and have money left over to spend on other financial plans, but your new mortgage will come with a new interest rate and a new monthly payment (which generally increases along with loan size). You'll also need to have a certain amount of equity to make cash-out refinancing work. Generally, if the amount of cash you need would cause you to to dip below 20% equity in your home, a cash-out refinance may not be the best option for you.

When you get a home equity sharing agreement, a partner like Noah will approve you for a maximum funding amount in exchange for a percentage of your home’s value. Unlike a cash-out refinance, a Home Value Investment does not have any interest or monthly payments associated with it for up to 10 years – instead, you’ll pay Noah back later based on the value of the home at that time. If it’s grown in value, we’ll share in the gains with you. If it’s decreased in value, we’ll also share in those losses alongside you.