What type of refinance transaction does not provide cash to the borrower?

A no cash out refinance is specifically designed to allow a borrower to refinance their existing mortgage without accessing any additional cash. In this type of transaction, the borrower replaces their current loan with a new one, often with more favorable terms, such as lower interest rates or improved loan conditions, but does not receive any cash from the equity of their home. The amount of the new loan is typically equal to or less than the existing loan balance.

This approach is beneficial for borrowers who want to reduce their monthly payments, switch to a different loan product, or stay in their current loan without tapping into their equity. It is a straightforward refinancing option aimed at improving financial circumstances without the additional complexities that come with extracting equity.

Other options, like cash out refinance, involve taking out additional cash along with the mortgage, while conventional and government refinance options can encompass either type of transaction, depending on the specifics. These alternatives do not align with the characteristics of a no cash out refinance, as they may provide different benefits related to cash withdrawal or loan type.