How Does A Cash-out Refinance Work?

[Devonte Thomas]

Sorry to those I may confuse by asking the same type of question as before but I genuinely need some clarity.... I was wondering what the terms mean when a cash-out refinance requires the home owner to at least have 20% equity in the home. Does that mean when the cash is taken out I would need to have a 20% downpayment originally, BEING my 20% equity in the home, or does that mean the house has to have 20% equity left over from the new value of the house if the loan only covers 80%?