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SourceLaw Dictionary Browse Letter C

Cash Out Refinance

Legal definition for Indian law research

Definition

cash-out refinance


when a borrower refinances a mortgage at a higher principal amount to get additional money. Usually this occurs when the property has appreciated in value. For example, if a home has a current value of $100,000 and an outstanding mortgage of $60,000, the owner could refinance $80,000 and have additional $20,000 in cash.



Source: U.S. Department of Housing and Urban Development


Definitions are for legal research. Always verify meaning in the context of the statute, judgment, or jurisdiction cited.

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