What's the difference between cash out refinance to only refinanc

[Ari Hadar]

I heard there's a difference between cash out refinance to only refinance? 

Do seasoning time has to do with it? 

[Stephen Brown]

Here's a cash out refinance explained simply

If you have a home worth 200k and only owe 100k then you own 100k. You go to your bank and ask for a cash out refinance. The bank says okay you own a property worth 200k, we will lend you 80% of the value. So they lend you 160k. Since you owe 100k, but you gained 160k, you essentially made 60k. You pay off the old loan and now you have a new one. The rate is slightly higher vs just doing a rate/term refinance.