Finance
A Colorado property owner wants to do a 'cash-out refinance.' This means they:
APay off the entire mortgage in cash
BRefinance for a higher loan amount than needed to pay off the existing mortgage, receiving the difference in cash✓ Correct
CSell the property for cash with no financing contingency
DTransfer their mortgage to a new lender without changing the loan terms
Explanation
In a cash-out refinance, the homeowner takes out a new, larger mortgage (using their equity as the basis) to pay off the existing mortgage and receive the remaining balance as cash. This converts home equity to liquid funds.
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