What is cash out on mortgages?
If you refinance a property you own and take out a new loan for
more than the balance (plus allowed closing costs) of the previous
loan you will receive cash at the closing. That makes a mortgage
cash out. or.... if you own a property free and clear and want to
take out the equity in your property you can do this by taking out
a mortgage loan and the lender will give you the money at closing.
When you walk away from closing with usually more that 2% of the
mortgage balance as cash to you..that is considered cash-out.