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With cash-out refinancing, the principal amount of the new mortgage is greater than that of the existing mortgage being refinanced, and the equity is converted into cash for the homeowner. For a short period of time, say about five years, the 15-year mortgage can be a wonderful way to build equity to take with you to the next house. HUDA further has 50 other sites in its bag which it envisages to release in the next six months.
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