Finance

A Montana homeowner who refinances their home to pull out equity is performing a:

APurchase money mortgage
BCash-out refinance✓ Correct
CRate-and-term refinance
DSwing loan refinance

Explanation

A cash-out refinance occurs when a homeowner refinances their existing mortgage for a higher amount than owed and receives the difference in cash. This allows access to home equity for renovations, investments, or other uses. It differs from a rate-and-term refinance, which simply changes the interest rate or loan term without extracting equity.

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