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A cash-out refinance replaces your existing mortgage with a new, larger mortgage. You withdraw the difference between the old mortgage and the new, and you can use the money however you want.

The most common ways homeowners use this cash, according to Freddie Mac’s most recent analysis, are to pay off bills or other debt (40%), for home repairs or new construction (31%), to increase their cash savings (14%), to buy a car (9%) or to pay for college (7%). Some borrowers used their cash for more than one purpose.

Cash-out refinancing lets you access your home equity through a first mortgage instead of through a second mortgage, like a home equity loan or line of credit. You will need to have 10% to 20% equity left after the refinance. The percentage required depends on the lender and whether you’re willing to pay for private mortgage insurance (PMI) on the new loan.

PMI is an extra cost that borrowers typically pay when they don’t put at least 20% down to buy a house or when they don’t have at least 20% equity after a cash-out refinance. It protects the lender if you stop paying your mortgage. A cash-out refinance may not be cost effective if you’ll have to pay PMI as a result.

How much money could you get from a cash-out refi? To calculate the amount, you need to know three things:

Lenders will use a physical appraisal or an automated valuation model—a software-based comparison of similar properties—to decide how much your home is worth. You’ll be allowed to borrow as much as 80% or 90% of that amount, depending on the lender’s rules. The 10% to 20% of your home’s value you can’t borrow is your retained equity.

From this new amount you can borrow, subtract what you owe on your current mortgage. The difference is the cash you’ll receive. While it might feel like a payday to you, it’s not taxable as income because it’s a loan. Also, you don’t have to cash out the full amount your lender allows you to; you can take less. Why pay interest and fees on money you don’t need to borrow?

A standard refinance, or rate-and-term refinance, changes your interest rate, the number of years you have to repay your mortgage or both. The most popular reason to do a standard refinance is to lower your interest rate.

Sometimes, homeowners who are getting a lower rate through a refinance will also move from a 30-year mortgage to a 15- or 20-year mortgage. This way, they don’t start all over on paying off their home, and they may even shave off years of payments. That means they’ll spend less money on interest in the long run. You can get a shorter term with either type of refi.

Other times, homeowners are motivated to refinance by financial constraints. A standard refi that restarts the 30-year payment clock can give you a lower monthly payment, especially if you’re getting a lower interest rate. A cash-out refi will usually increase your monthly payment because you owe more overall on the mortgage.

If you do a cash-out refinance, you will pay closing costs to get your new mortgage. Closing costs will vary by lender, location and home price, but typically range from 2% to 6%. You can pay these costs in one of three ways:

Paying your closing costs in cash will be the cheapest option, and you may be able to use the cash you’re getting through the refi to pay them. The biggest of these costs will be the mortgage origination fee that usually costs around 1% of the amount financed, or $1,000 for every $100,000 borrowed. Other closing costs include an appraisal, credit check, title search, title insurance, notary fee and recording fee.

You may pay a higher interest rate or more points on a cash-out refinance than on a standard refinance. Lender PennyMac’s 30-year conventional refinance rate for July 3 was 3.375% and assumes a $400,000 home value, $320,000 loan amount, $50,000 cash out, 740 FICO score and two discount points (a $6,400 fee on top of other closing costs). The same lender’s advertised rate for a regular refinance was 3.125% with one discount point, but also assumes a $220,000 loan amount.

There are three common reasons to use a cash-out refinance, but just because they’re frequent uses, doesn’t mean they always make financial sense.

Whether it’s your own education, a partner’s or your child’s, paying for it with a low-interest mortgage over 15, 20 or 30 years can seem more appealing than taking out higher-rate student loans with 10-year repayment terms. Before you do this, weigh the costs and benefits of student loans against the costs and benefits of borrowing against your home.

Here are three key considerations:

Who doesn’t want a new kitchen, a new bathroom or an additional room? People often justify home-improvement borrowing by saying it will increase their property’s value.

Remodeling.com’s 2020 Cost vs. Value report may disabuse you of that notion: It shows that home upgrades do not offer any return on your investment; they actually lose money, though certain markets and projects offer exceptions. Make your home nicer because you want to—not because “it will pay for itself.”

This use of mortgage debt is tax deductible if you itemize, but most people don’t.

You might have student loans, credit card debt, a car loan, a personal loan or all of the above. These debts probably all have higher interest rates than your mortgage. It can be appealing to consolidate multiple debts into a single monthly payment, especially when your interest rate will be lower.

When you exchange these debts for mortgage debt, however, you’re stretching out the time to repay them over 15 to 30 years. You may end up paying much more interest in the long run, as we illustrated in the student loan example above. You’ll also have the dangerous opportunity to keep using your credit cards to overspend, so you could end up in more debt than you started with.

A cash-out refinance is not the only low-cost way to borrow against your home’s value. Would one of these alternatives work better for you?

A home equity loan lets you borrow against your home’s value and gives you a lump sum, just like a cash-out refinance does. However, you’ll leave your existing mortgage alone and borrow the cash you need with a separate, smaller loan. If a cash-out refinance won’t give you a lower interest rate on your first mortgage, a home equity loan may be a better option.

The interest rate on a home equity loan is usually higher than the interest rate on a first mortgage or home equity line of credit. Expect to pay prime plus about 2% or so. The prime rate as of July 2020 is 3.25%, whereas the average 30-year fixed mortgage rate was about 3.03%, according to Freddie Mac’s Primary Mortgage Market Survey for July 9, 2020. However, with a home equity loan, you’ll be paying that higher interest rate on a smaller sum.

Because you’re borrowing less than you would through a cash-out refi, your closing costs will probably be lower. Also, you won’t lose ground on paying off your first mortgage, so you may pay less interest in the long run.

A home equity line of credit, or HELOC, lets you borrow smaller amounts as you need them instead of a larger amount all at once. The result? You may pay less interest.

HELOCs have lower interest rates than home equity loans, but higher rates than first mortgages. In a market where the rate on a 30-year refi is 3.03%, the rate on a 30-year HELOC might be 4.7%. Plus, a HELOC’s rate is usually variable, not fixed, so your payments may increase over time and will not be predictable.

HELOCs come with a unique risk that a cash-out refinance or home equity loan does not: The lender can freeze or reduce your line of credit without warning if economic conditions worsen, your home’s value declines or your financial circumstances change. In other words, the money might not be there when you want to use it.

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Firstly, you need to connect your Wemo device to the current and turn it on. This will make your Wemo device create a WiFi network that we will be using in the next steps to configure the device in our WiFi home network.

In case you’re connecting Wemo lights, you need to connect the Wemo link to current and also turn on all lights.

Install the Wemo App you’ll find in the Playstore and Appstore.

Open it and create an account. Then, select the devices you’re configuring. Follow all steps according to the Wemo App to connect your Wemo device to your network.

During the configuration process, you will be asked to connect to the Wemo network it was created before. Finally, you have to provide your home network WiFi credentials, so the Wemo devices can connect to it.

In case you have any problem during the setup process, check the next section and look for the issue you’re having.

There are some great alternatives to the Wemo official App. Here we’ll show some of them:

Yeti

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