Cash-Out Refinancing means refinancing your house for more than you owe, so you get a pack of cash.
Here's an excellent analysis of cash-out refinancing from bankrate.com:
Homeowners today treat their houses like piggy banks, readily transforming their equity into cash and credit. You have home equity loans (still sometimes called second mortgages), home equity lines of credit and reverse mortgages. Then there's cash-out refinancing.
With cash-out refinancing, you refinance your mortgage for more than you currently owe, then pocket the difference.
