A cash-out refinance replaces your existing mortgage with a new, larger mortgage. You may withdraw the difference between the old and new, and use the money however you wish. There are many reasons why individuals may choose to go the cash-out refinance route including: pay off bills/ debt, home repairs/construction, increase cash savings, or for other large purchases. Owning property is a good investment and paying down the mortgage helps build equity. Cash-out refinancing allows you to access your equity sooner.