Cash Out Refinance
What is a Cash Out Refinance?
A cash-out refinance rewards the borrower with the excess balance on his amount due to the bank for the loan. If the value of the borrower’s mortgage for his loan increases and he will pay more than he owes by the end of his loan term, he might choose to refinance for the cash-out option. It’s like paying more than you owe to taxes and getting more money back in the spring. The cash-out option requires a strict approval process and is often limited to $250,000 cash-out.