The cash-out refinance is a loan that gives you a check upon approval. If you were approved for a $300,000 cash-out refinance on a $400,000 home, you get a check for $300,000. You pay the mortgage.
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Cash-out loans are priced higher, lenders say because the borrower is statistically more likely to walk away from the loan if they get in trouble. acquired the two loans when you bought the house,
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