More about Cash Out Refinance:
A cash-out refinance is a way to both refinance your mortgage and borrow money at the same time. You refinance your mortgage and receive a check at closing. The balance owed on your new mortgage will be higher than your old one by the amount of that check, plus any closing costs rolled into the loan.
There are no restrictions on how you use the proceeds from a cash-out refinance – you can use it for any purpose you like. Some of the more common ones are home improvements or repairs, paying off other debts, education costs, starting a business or medical expenses.