Cash-out refis have been sought because with mortgage rates at a historical floor, millions of homeowners have been refinancing to lower their rates and tap the equity in their homes. Plain-and-simple.

Cash-out refi. A cash-out refi is a refinance of any of your existing mortgage loans. It essentially allows you to obtain a new loan to pay off the current one and also take out equity (the difference between how much your property is worth and how much you owe on the mortgage) in the form of a one-time lump sum cash payment.