“Cash-out” refinancing

Another nice option is "cash-out" refinancing in which a person having home equity can refinance his/her property for an amount exceeding that he/she owes and utilizes the additional cash to pay off his/her debt. Although the person gets very low interest rates this way, he/she can still stretch payments out over 15 or 30 years. If stretched over 30 years, the total interest cost can become quite large. It is, therefore, sensible to consider this as a one-time-only option.
Although not given due importance by many, refinancing one’s car is a secured loan against which a person can borrow money. However, one must keep it in mind that sometimes he/she may run out of car before running out of debt. It really becomes difficult to purchase a new car if one owes more than the car’s value.