Yes. Many homeowners use cash-out refinances to get the funds they need for a down payment on a new property or buy a new home in cash if they have enough equity.
Something to keep in mind is that expenses related to the new property will impact your debt-to-income ratio (DTI). So when you apply for the cash-out refinance, your Home Advisor may want to see a sales contract for the new home and ask some questions about the property taxes and insurance you’re expecting to pay.
If your new DTI (after completing the cash-out refinance) will be above 45%, Better Mortgage will need to know that you have at least 6 months of housing reserves in assets. This shows that you have enough funds to cover your new mortgage payments if anything happens to your income or employment.