What does Cash-Out Refinance mean?

This is a type of mortgage refinancing in which the borrower takes out a new loan that is larger than the outstanding balance on their existing mortgage. The borrower is then able to use the difference between the two loans (the "cash-out") to pay off other debts or make other investments.

Related Terms

Fair Debt Collection Practices Act. Certificate of Occupancy Liability Insurance Built-Ins Breach of Contract Equal Credit Opportunity Act. Pre-Sold Home Shared-Equity Transaction Appraised Value Fannie Mae Free-Market Lots Resale Value Lease Option Federal Housing Administration (FHA) Due-On-Sale Clause Add-On Interest Home Equity Conversion Mortgage Easement