What is a Cash Out Refinance? - Definition
Different lenders have different views as to how they define a Cash Out Refinance. In general a Cash Out Refinance is when a mortgage is rewritten for a higher principle balance than the exisiting mortgage,

and the remaining balance is given to the borrower in the form of cash. Some lenders will consider cash out to be only physical cash given to the borrower (typically lenders that deal with troubled credit), while others will consider it any money above the current principle balance of the first mortgage. Programs and guidlines may vary for different cash out refinances and how they may affect rates and terms.