What is cash-out refinance?
A new, larger loan that retires the existing balance and distributes the difference as borrowed cash to the owner. Generally not taxable because borrowed money must be repaid; it raises debt service and equity risk.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.