Finance
A NJ property owner who refinances to take out equity for home improvements is using a:
APurchase money mortgage
BCash-out refinance✓ Correct
CConstruction-to-permanent loan
DFHA 203(k) rehabilitation loan
Explanation
A cash-out refinance replaces the existing mortgage with a new, larger mortgage, and the difference (the equity extracted) is paid to the borrower in cash, which can be used for home improvements or other purposes.
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