Definitions for "Cash-Out"
A cash-out refinance consists of a loan amount exceeding the current first mortgage to be paid off for one or all of the following reasons: To cover some or all of the closing costs and/or escrow items To cover paying off additional items at closing such as credit card debt, auto loans, student loans, lines of credit, etc. To provide additional money given directly to customer to be used for various reasons
To turn some of your home equity into cash through a home equity loan; this is to use the financial power in your home.
Cashing out refers to the refinancing of a loan where the borrower will take out money on their own home. If a home is appraised at $100,000 and the borrower's outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers.
a payment option provided under the Spectrum Retirement Plan. When you choose the cash-out option, your entire retirement benefit is paid to you in one lump-sum cash payment when you retire or terminate, which you may keep (incurring applicable taxes and penalties if you take it before legal retirement age) or roll over to either an IRA or another employer's plan.
a distribution from a plan that is paid without the Participantâ€(tm)s consent. For a cash-out to occur, the Participantâ€(tm)s vested balance must be less than $5,000.
The distribution of assets from a plan to a participant prior to retirement, typically occurring when a participant has a balance under $5,000 and leaves a company without requesting to have their assets rolled over into an IRA or into a new employer's plan. Cash-outs are subject to federal withholding tax, and are subject to the ten percent early withdrawal federal income tax penalty if taken before age 591/2.
Quick sale for money.