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What’s the difference between a rate/term refinance and a cash-out refinance?

cash-out rate Refinance term
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What’s the difference between a rate/term refinance and a cash-out refinance?

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A rate/term refinance is when the member pays off an existing first lien mortgage and rolls in their closing costs. A cash-out refinance request is when the member not only pays off an existing first lien, but also wants additional funds to either pay off a second lien, consumer debt, home improvement, vacation, tuition, etc.

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