In a cash-out refinance, you receive the difference between the balance on your previous mortgage and your new, larger mortgage: in this example, it's as much as $140,000.
Do you get money back when you refinance?
Cash-out refinance gives you a lump sum when you close your refinance loan. The loan proceeds are first used to pay off your existing mortgage(s), including closing costs and any prepaid items (for example real estate taxes or homeowners insurance); any remaining funds are paid to you.
How much do you get back on a refinance?
Refinancing might be a good option if interest rates have dropped or are lower than your current rate, or if you need to extend your repayment term. Securing a lower interest rate through a refinance reduces your cost of borrowing so you'll pay less on your personal loan overall.