23 Mar
Two Basic Types of Refinances
To mortgage lenders, there are basically two types of refinances:
1. Cash-out
2. No cash-out (rate & term)
As the names imply, the difference is whether the borrower cashes out any of the property’s equity—although this may be too simple an explanation. Some rate & term refinances allow some cash back to the borrower.
Most cash-out refinances also allow changes to the loan’s rate and terms.