Is the cash in cash out refinance still a borrowed money?

[Kumar Gaurav]

Hello,

I am trying to wrap my head around cash out refinance.Say if I bought a home couple of years ago for 750k and it has now appreciated to 950k based on appraisal and I have an equity of say 50k in the form of principal payment.

What exactly happens during refinance?

Bank pays me back 80% of appreciation in this case 160k?

Say two years down the road I had to sell for 900k what happens? appreciate your input.

Thanks