Refinancing question

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I have a question (I will be using fake numbers), say I bought a property at 100,000 and put some rehabbing work in. I only had 10% (10,000) at closing so I needed a 80/10/10 loan, loan value = 100,000-10,000=90k

So a few months later the work is done, I get it reappraised at 125,000. If I tried refinancing at this new appraisal value, is it the same as if I have 10k (the original 10% i put down) + 25k (the change in value after rehabs) locked up in my property as equity? So its as if I put down 35k on a property with a LV of 100,000?

Is that how it works?