Cash Out - this is a type of Refinance where the property owner takes out a new mortgage loan on the property and pays off the existing First Mortgage, may pay off subordinate mortgages, and will include settlement charges in the new loan. The borrower will also take cash out against the equity in the property. The cash out  can be used for debt consolidation, home improvement or just for getting cash to the borrower.

In a few words, Refinance is simply  the process of taking a new mortgage and using the money obtained to close out or pay off the current mortgage. It means that Refinancing involves many of the same steps that were required in applying for and getting the First Mortgage and can also involve some of the same expenses.
On the other hand, depending on how the terms of new mortgages that may be available at this moment compare with the terms of the borrower's current mortgage, Refinance can save the borrower a significant amount of money.

Refinance makes good sense if the borrower's existing mortgage has an interest rate which is higher then the current interest rates on the market.
Mortgage Refinancing can be a good way to take advantage of the low interest rates, while freeing up some money to complete home renovations, take a long overdue trip or simply of getting some extra cash. A home owner can Refinance their home up to 95% or even 100% regardless of how much the house is. This money can be used for almost everything (paying bills, investments, travel, to start business, etc.)