No Cash-Out Refinance

No Cash-Out Refinance
The refinancing of an existing mortgage for an amount equal to or less than the existing outstanding loan balance plus an additional loan settlement cost. It is done primarily to lower the interest rate charge on the loan and/or to change the term of the mortgage.

A no cash-out refinance is also known as a 'rate and term refinance'.

Most borrowers do not realize that refinancing an existing mortgage into a new mortgage with a lower interest rate might actually mean more interest will be paid over the life of the mortgage. This is especially true if the new mortgage has a term longer than what is left on the existing mortgage, but it is dependent upon the amount by which the interest rate is lowered, and any additional outstanding years on the new loan over the old loan.

Also, most refinancing transactions involve additional direct costs, which most borrowers roll into the balance of the new mortgage, making you pay even more. The bottom line is that there is more to be considered in refinancing a mortgage than simply lowering your monthly payment by a few dollars.


Investment dictionary. . 2012.

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  • Cash-Out Refinance — A mortgage refinancing transaction in which the new mortgage amount is greater than the existing mortgage amount, plus loan settlement costs. The purpose of a cash out refinance is to extract equity from the borrower s home. A cash out refinance… …   Investment dictionary

  • Cash out refinancing — (in the case of real property) occurs when a loan is taken out on property already owned, and the loan amount is above and beyond the cost of transaction, payoff of existing liens, and related expenses.DefinitionStrictly speaking all refinancing… …   Wikipedia

  • Cash-Out Refinance Mortgage Loan — (избыточный рефинансирующий ипотечный кредит) ипотечный кредит, привлеченный для рефинансирования существующего ипотечного кредита, когда новый кредит более чем на 1% превышает сумму, требуемую для досрочного погашения существующего кредита,… …   Ипотека. Словарь терминов

  • Rate And Term Refinance — The refinancing of an existing mortgage for the purpose of changing the interest and/or term of a mortgage without advancing new money on the loan. This differs from a cash out refinance, in which new money is advanced on the loan. Rate and term… …   Investment dictionary

  • Leveraged buy-out — Le leveraged buy out, abrégé en LBO, terme anglais pour financement d acquisition par emprunt, a été inventé par Douglas Brueder[réf. souhaitée] et consiste à racheter une entreprise en ayant recours à l endettement bancaire en engendrant un …   Wikipédia en Français

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  • Leverage buy-out — Leveraged buyout Un financement d acquisition par emprunt, également désignée par le sigle LBO (pour l anglais leveraged buy out) consiste à racheter une société en ayant recours à de l endettement bancaire aussi appelé effet de levier. C est l… …   Wikipédia en Français

  • Leverage buy out — Leveraged buyout Un financement d acquisition par emprunt, également désignée par le sigle LBO (pour l anglais leveraged buy out) consiste à racheter une société en ayant recours à de l endettement bancaire aussi appelé effet de levier. C est l… …   Wikipédia en Français

  • Required Cash — The total dollar amount that must be posted up front by the buyer to close a mortgage or to refinance an existing property. The required cash amount can include any of the following amounts if they are requested at closing: Any down payment… …   Investment dictionary

  • Loan Purpose — Pertaining to mortgages and their risk based pricing factors, the loan purpose factor is sub categorized by purchase, Rate term refinance and cash out refinance.Lenders assess that a purchase loan contains the least amount of risk and thus price… …   Wikipedia

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