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Mortgage Refinance
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Cash Out Refinance
With a cash-out refinance you take out a new loan more than you currently owe and pocket the difference. By choosing a higher loan amount, you are converting some of your home equity into cash, which you receive at loan closing.
Cash-out refinancing differs from a home equity loan in three ways:
1. A Cash-out refinance replaces your first mortgage
2. Interest rates for cash-out refinancing are usually lower than those on other equity loans
3. A refinance requires you to pay closing costs
