What does 'requested cash out' refer to in a mortgage transaction?

'Requested cash out' in a mortgage transaction specifically refers to the amount of money that a borrower wants to receive in excess of the existing mortgage balance after closing costs have been subtracted. This can occur during a refinance where a homeowner might want to tap into their home equity. Essentially, it is the additional cash that they would like to access from their property value beyond what is owed.

In this context, when a homeowner refinances or takes out a second mortgage, they might ask to "cash out" a portion of their equity. This allows them to receive funds that can be used for various purposes, such as home improvements, debt consolidation, or even personal expenses. The key aspect is that it is calculated after accounting for any applicable closing costs.

Other choices do not accurately describe this concept. The total mortgage amount agreed upon simply refers to the principal loan amount without considerations for costs or cash-out requests. The cash reserve maintained for closing relates to funds set aside specifically for closing expenses and not to excess cash a borrower wishes to take out. Requested amounts for home repairs are also not tied to the concept of 'requested cash out,' as this is a specific request unrelated to gaining cash from home equity.