Refinancing an existing mortgage to a higher balance and taking the difference in cash.
Best when current mortgage rate is at or above market rate. If your existing mortgage is sub-4% (pre-2022), a cash-out refi usually surrenders that rate and isn't a fit. Closing costs: 2-5% of the new loan.
Part of the BackyardADU California ADU Glossary — plain-English definitions of the regulatory, construction, and financing terms you'll encounter during a California ADU project.