The process of taking out of a new mortgage at an amount that exceeds the existing...

To refinance the mortgage on a property for more than the principal owed. This allows the borrower to get cash from the equity in their home. Loan products may vary on how much can be borrowed on a cash-out refinance.

Cash-out refinancing allows you to refinance your current mortgage for more than you owe and pocket the extra money that is left over.