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Cash-Out Refinance

Cash-Out Refinance is a refinance transaction in which the new loan amount exceeds the sum of the payoff amount of existing first mortgage and any secondary mortgages or liens, together with closing costs and points for the new loan.

This excess is usually given to the borrower at closing and can often be used for debt consolidation, home improvement, or any other purpose.

The borrower effectively borrows against the home's available equity.

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