Cash Out Loans

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Cash out loan is a loan where a borrower receives more than $2000.00 or 2% back, which ever is lower. A cash out loan will always be a refinance because you can not cash out on a property you do not own yet. In a cash out refinance, you receive the remainder of the money after the existing lien is paid off. For example, if you were refinancing for $100,000.00 on a property you owe $80,000.00 on, then you would receive $20,000.00 back. If you own a house outright and took out a loan, then you would receive all the value of the loan. A cash out can be a fixed rate or an adjustable rate. If you need to free up some cash flow, or consolidate your liabilities, then a cash out refinance is an excellent way to do it.

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