A note in real estate is a promissory that you will repay a loan. It works with a mortgage which enforces the contract.

When you carry a note you finance the sale of your house. You loan money to the buyer to pay for your house, and they make monthly payments to you instead of a bank.

 
 

There are four primary ways to pull cash out of your house. You can refinance, get a second mortgage, get a home equity loan, or get a HELOC.

You should carefully consider your reasons for wanting to cash out on your home. Will it increase your property’s value, decrease interest or the payment schedule; or will it improve your financial decision by paying off high-interest debts?

If it doesn’t do any of those things, you should ask yourself if you really need to do it.

 
 
 
 
 
 
 

If you are able to pay down or eliminate your debts you should. Start with high interest credit cards first. Then pay down your mortgage last.

However, you should consider your financial situation first. Is it worth it to pay refinancing fees? Can you get rid of your debt without refinancing? can you change your spending patterns?

You should explore these before making major financial decisions.