Definitions for "Cash Out Refinance"
A refinance option, where additional funds are paid to the borrower, in addition to the existing equity loan being paid off. The additional funds can be used for different purposes (debt consolidation, home improvements, large purchases, etc.).
A refinance in which a borrower takes cash/equity out of their property.
a loan in which the amount borrowed exceeds the total amount needed to repay the original loan and loan expenses, in essence putting cash into the borrower's pocket