Finance
In Louisiana, a homeowner with significant equity may obtain a 'cash-out refinance' to:
AReduce their mortgage balance
BReplace their existing mortgage with a larger loan, receiving the difference (equity) as cash for home improvements, debt payoff, or other uses✓ Correct
CEliminate PMI from their current mortgage
DTransfer the mortgage to a different property
Explanation
A cash-out refinance replaces the existing mortgage with a new, larger loan. The borrower receives the difference between the new loan amount and the existing mortgage balance as cash — borrowing against their home equity for various purposes.
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