Definitions for "No cash-out refinance"
The replacement of a matured loan with a new loan where no additional principal is borrowed and added to the loan.
Also referred to as rate reduction mortgage or rate and term refinance. The mortgage amount is limited to the sum of the unpaid principal balance of any existing first mortgage(s) plus closing costs.
a transaction in which the new mortgage amount is limited to the sum of the remaining balance of all existing mortgages, closing costs (including prepaid items), and any discount points