Finance
A Maine homeowner refinances their $300,000 mortgage to take out $40,000 in equity. This is called a:
APurchase money mortgage
BCash-out refinance✓ Correct
CRate-and-term refinance
DHome equity line of credit
Explanation
A cash-out refinance replaces an existing mortgage with a new, larger loan, and the homeowner receives the difference in cash. This taps into the home's equity.
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