Final answer:
Funds for an owner-occupied, residential refinance are disbursed after the loan closing, following various steps such as paying off existing mortgages and liens, covering closing costs, and providing remaining funds to the borrower.
Step-by-step explanation:
For an owner-occupied, residential refinance, funds are typically disbursed after the loan closing. This means that the funds are released and transferred to the borrower or other relevant parties involved in the refinance transaction.
Once the loan closing is completed, the funds can be disbursed in various ways. These include paying off the existing mortgage or liens on the property, paying closing costs, and providing any remaining funds to the borrower. The specific timing of the disbursement may vary depending on the lender's policies and the terms of the refinancing agreement.
For example, if a homeowner is refinancing their mortgage to take advantage of lower interest rates, the funds may be disbursed to pay off the existing mortgage and other debts. If there is any remaining equity in the property, the borrower may receive those funds as well.