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Drawbacks of Cash Out Refinance\n\n If you miss enough payments, you risk losing the house. A cash out refinance should not be approached with the same nonchalance as opening a Macy's credit card. It's a serious investment, with serious, long-term implications should things go south.
Best. When buying a home, "cashing out" usually refers to a homeowner refinancing their mortgage to access the equity they've built up in their home. This means they take out a new mortgage for more than the remaining balance on their current one, and receive the difference in cash.
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