Finance
A cash-out refinance allows a homeowner to:
APurchase a home without a down payment
BRefinance to a new mortgage that is larger than the existing balance and receive the difference in cash✓ Correct
CRefinance to reduce the loan term
DAdd a co-borrower to the existing mortgage
Explanation
A cash-out refinance replaces the existing mortgage with a larger one, allowing the borrower to access equity in the form of a cash payment for the difference.
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